Pump.Fun, a protocol that helps crypto users create and gamble on memecoins, has generated almost $6.3 million in revenue in the last seven days. That’s more than long-standing projects such as layer 1 network Solana, decentralized lending venue Aave, and stablecoin issuer MakerDAO. 

While Pump.Fun is approaching $100 million in cumulative revenue, its users and the tokens minted via the memecoin factory have not seen the same level of success. 

More than two-thirds of wallet addresses on Pump.Fun are unprofitable, according to a Dune Analytics dashboard created by an onchain analyst going by @Adam_Tehc. 

“If you’re profitable, the reality is you’re already outperforming most,” wrote @Adam_Tehc on X.

The dashboard created by @Adam_Tehc is imperfect, as calculating the profit-and-loss for each wallet address in an entire ecosystem is a challenge, and requires making certain assumptions about price and timing. However, per Andrew Hong, head of developer relations for Dune Analytics, the dashboard “is overall still great data work.”

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Small Chances To Graduate

Just as users are struggling to generate profit from trading memecoins, tokens launched through Pump.Fun have only rarely experienced success. Of the over one million deployed via the memecoin platform, only 32 tokens currently have a fully diluted valuation (FDV) exceeding $1 million, data from GeckoTerminal shows. 

The top three tokens by FDV include the cat-inspired coin MICHI, social influencer Andrew Tate’s DADDY, and hip-hop artist Iggy Azalea’s MOTHER, which collectively have an FDV of almost $140 million. 

When a token on Pump.Fun reaches a market cap of $69,000, some of the cryptocurrency’s liquidity is deposited in decentralized exchange Raydium and burned. Of the total tokens deployed, just over 1% have graduated from Pump and are promoted to Raydium. 

For example, in the last 24 hours, 136 tokens reached a market cap of $69,000 and were subsequently promoted to Raydium out of the 11,743 tokens launched, placing a token’s chances of graduation at 1.2%, per @Adam_Tehc’s dashboard.

The gap between the platform’s revenue and the success rates of its users and tokens illustrates how most memecoin traders “chase phantom gains, ending up empty-handed,” wrote one X user who goes by @Sexxy_NFT. “A select few strike gold, fueling the illusion but the house always wins. 

“The real profit lies not in playing, but in creating the game itself.”