Pump.fun: A Free Casino or a Hotbed of Conspirators?

Regarding the news that Burwick Law took legal action against Pump.fun, many crypto KOLs also joined the discussion.

Pump.fun has recently sparked a public opinion crisis, with the US law firm Burwick Law filing a lawsuit against Pump.fun and the fraudulent project on behalf of investors who lost money on the platform. Burwick Law stated that this announcement was made after months of cooperation with investors, and also called on more victims to fill in registration information.

Moreover, a week ago, there were only 55,000 addresses on social media that had profits of more than $10,000 on Pump.fun, which also caused a lot of discussion. Pump.fun founder Alon had to stand up and respond to inaccurate data. It seems that behind the players' contribution of a large amount of handling fees and interaction volume, who is the biggest winner of Pump.fun has become a topic of more concern to everyone.

A free casino or a hotbed of conspirators?

Regarding the news that Burwick Law took legal action against Pump.fun, many crypto KOLs also joined the discussion. Well-known on-chain detective ZachXBT said: "Degenerate gamblers voluntarily chose to gamble in the micro-market value MEME tokens and are not actual victims or investors."

In response, Burwick Law posted the opinion of its partner Max Burwick: "Like in casinos, regulated gambling is defined by rules and unchangeable statistics. Imagine if you went to a casino and the dealer could "rug pull" a card game, would you make the same argument as here?"

In fact, ZachXBT and Max Burwick's views basically represent two attitudes of the public towards suing Pump.fun. Some people believe that trading on Pump.fun is voluntary, and suing is a pure expression of being unable to afford it. Moreover, from a mechanism point of view, Pump.fun also reduces a lot of fraud risks in MEME. Others believe that Pump.fun charges a lot of fees, but allows some addresses to manipulate the market and does not review the content, so it should be sued.

Of course, we still have no way of knowing whether Pump.fun has violated relevant regulations, and whether this lawsuit will be a victory for investors or turn into a farce.

How many winners are there on Pump.fun?

But in addition to this, how much profit do users on Pump.fun make? Who is the biggest profiteer on Pump.fun? This information may be more meaningful to ordinary users. PANews has made some summary and analysis of the data of Pump.fun over a long period of time.

In fact, as early as January 11, the discussion on social media about the number of addresses on Pump.fun with profits exceeding $10,000 was only 55,000 (accounting for 0.408%), which caused a stir. Alon, the founder of Pump.fun, also responded to this, saying that this statistic was inaccurate. The reasons are: 1. The purchase of tokens that have been bound to Raydium is not included, and most of the gains are generated after the tokens are bound. 2. Unrealized profits are not taken into account. 3. Many of the more than 13 million traders are robots and AI agents. About 30% of the wallets have only made one transaction, and these wallets cannot be real people.

Here Alon is referring to the data table of "Pump.Fun Alpha Wallets" created by @adam_tehc on Dune. It should be noted that Alon did not say that the data about @adam_tehc was distorted, but believed that the data was incomplete and insufficient to explain the profitability of Pump.fun users.

PANews will also partially use the data from several Dune dashboards created by @adam_tehc in subsequent analysis, but will only use basic statistical data, such as the total number of addresses, transaction volume, cumulative revenue, etc. In addition, since there is no direct user profit and loss analysis data, the following analysis uses the existing data for analysis, estimation, and inference. This analysis method may not be very accurate, but it is hoped that it can explain some problems from certain perspectives.

Since there are many data categories used, some basic data are listed here first (data as of January 16):

Pump.fun Total revenue: $416,810,737 ($416.8 million)

Pump.fun cumulative token issuance: 6,096,526 (6.096 million)

Pump.fun cumulative user addresses: 14,130,923 (14.13 million)

Pump.fun’s revenue in the past 30 days: 105,182,383 ($105 million, this figure is a bit high, mainly because Pump.fun did several revenue aggregations on other DEXs in January