Pump.fun launched just over one year ago on January 19, 2024, yet in its short history, the platform has managed to usher in a new era of memecoins — or what the New York State Department of Financial Services calls "sentiment-based virtual currencies."
Pump.fun, which launched on Solana, rapidly grew in popularity, becoming the fastest crypto app in history to generate $100 million in revenue, achieving the feat in just 217 days. The viral memecoins it birthed, from Moo Deng to Fartcoin, seek to capitalize on an essential moment in popular internet culture, fund a special cause, or, in some cases, scam their investors, though Pump.fun's novel mechanics to promote legitimate launches formed one core component of its success.
Recently, the platform set a new record, racking up $15.38 million in fees on Friday, Jan. 24, according to The Block's data, its highest sum for a single day.
The record was achieved due in part to the hype around Vine Coin, a new memecoin launched by Rus Yusupov, one of three co-founders of the defunct looping video platform of the same name. X owner Elon Musk has hinted at reviving the defunct brand on the X platform, and an X software engineer said on Saturday that there's internal excitement at the company around the idea of renaming the app's video tab to Vine. (Twitter acquired Vine in 2012 before shuttering the platform in 2017.)
Vine Coin quickly grew to a market cap of nearly $425 million before retreating slightly, but its viral success helped Pump.fun set its one-day revenue record. Pump.fun has seen over $4 billion in volume over the past 2 weeks, and will soon cross the threshold of 2.5 million SOL tokens in volume, according to Dune.
Though stories of memecoin-fueled success have captivated the crypto sphere, many investors have lost money in the trading arena. A US law firm is even seeking legal action against the exchange on behalf of investors who have experienced losses trading memecoins on the platform.
Meanwhile, Solana DEX aggregator Jupiter's acquisition of memecoin platform Moonshot could threaten Pump.fun's dominance, though it has a long way to climb if Pump.fun's recent record-breaking volume is any indicator.
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