Pump Sucks: 80% of Traders Lose Money on PumpFun, Analysis Finds

Pump Sucks: 80% of Traders Lose Money on PumpFun, Analysis Finds

PumpFun: A Profitable Platform for Only a Few PumpFun, a Solana-based token issuance platform, has attracted attention but also raised concerns about the profitability of its users. A recent analysis by cryptocurrency analyst arndxt revealed that a staggering 80% of traders on PumpFun lost money. This means that for every 10 users, only 2 made a profit while the rest saw their investments dwindle. Breakdown of Profitable Traders: The analysis further broke down the profit margins among traders: - 0.0028% (70 traders) made over $1 million - 0.037% (924 traders) made over $100k - 0.477% (11,936 traders) made over $10k - 3.061% (76,567 traders) made over $1k Predominance of Young Traders: Arndxt speculated that many of those who lost money were young traders, particularly zoomers (born 1995-2010) and alpha (born 2010 onwards). These younger generations are more likely to engage in risky financial ventures without fully understanding the risks involved. PumpFun's Increased Revenue: Despite the low profitability for traders, PumpFun has seen a surge in revenue since making token issuance free on September 9th. However, critics argue that most of the tokens issued on the platform have rapidly lost value, highlighting the potential risks involved in investing in PumpFun tokens.