- The 1,700 wallet lost over $100,000. Only 311 people won more than $1 million.
- The UK banned the site in 2024. The lawsuit was filed in January 2025.
- Pump.Fun plans to raise $1 billion through the upcoming Pump Token launch.
Solana-based Meme Coin Launchpad Pump.Fun is facing scrutiny as new data reveals that more than half of the wallets participating in have suffered losses.
At least 60% of wallet addresses that interacted with Pump.Fun posted losses, according to the Dune Analytics report cited by Beincrypto.
The findings are just before the launch of Pump.fun’s highly anticipated billion-dollar pump token.
The event has been a huge topic of conversation, but is also in line with new sales pressures on Solana (SOL), the base chain of ecosystems.
There are few profits as millions are lost and profits grows
Of the 4.257 million wallets that traded more than 10 tokens on Pump.Fun, 2.4 million (56.6%) registered cumulative losses between $0 and $1,000.
Nearly 1,700 addresses lost more than $100,000, and 46 wallets lost more than $1 million.
By comparison, it only has around 5,000 addresses that earned more than $100,000, with only 311 wallets reporting profits of more than $1 million.
The May 2025 breakdown shows data on profits and failures shared by Crypto analysts Mild-Eater x It revealed that over 51% of their wallets have lost more than $500.
Just five wallets (0.0015%) acquired between $50,000 and $100,000 have been acquired, highlighting the sharp imbalances in wealth generation across the platform.
With the most profitable wallets only earn modestly, and 916,500 wallets earn between $0 and $1,000, there is an even more challenging claim to the creation of accessible wealth.
Trading bots, fraud and retail risks govern platform activity
Pump.Fun was initially positioned as an easy-to-use platform that allowed anyone to launch meme tokens in Solana for under $2.
However, recent data has raised questions about its fairness and transparency.
A Solidus Labs study cited in the same report found 98% of tokens that showed Pump.Fun showed signs of fraudulent activity or were not actually liquid. Only 1.4% of tokens had an active and verifiable market.
Analysts are questioning whether Pump.Fun is moving forward with adopting Defi or enabling low-cost fraud by pretending to be community-driven decentralised.
Past regulatory issues at Pump.Fun have also been resurfaced. The site was banned in the UK in 2024 and is currently facing a lawsuit filed in January 2025.
The still ongoing lawsuit has been paying attention to both institutional and retail investors, especially as the platform prepares for the launch of a token that will attract attention.
Solana hit Selloff ahead of the billion-dollar token sale
Market participants have already responded as pump tokens are preparing for the live show.
The launch is intended to raise $1 billion through a community-decent token model. However, the rising expectations are causing a spin from Solana’s native token.
Traders have recalibrated their capital to speculate on pump launches, putting downward pressure on SOL in recent weeks.
Deutscher pointed out in another post This capital shift reflects how investors previously used SoL as a proxy for Pump.fun fee generation.
With direct token provisions now in place, Sol is no longer necessary as an intermediary asset.
This shift could weaken Solana’s short-term liquidity profile and complicate the network’s broader decentralized finance strategy.
Despite being a breakout player during the early 2025 meme coin rally, Pump.Fun’s trajectory is marked by significant risk.
The story of financial democratization is weakened by hard data showing that 312,191 wallets (95.6%) have been uniformly broken or lost.
Whether pump tokens can reverse emotions remains unknown, especially in the overhead cloud of regulations and reputation.
