Pump.fun Founder Alon Argues That Dune's Reported Figures Lack Accuracy

Realized profits are calculated when traders sell their tokens, solidifying gains or losses. Of the 13.55 million Pump.fun wallet addresses, only 55,296 wallets have reported profits exceeding $10,000.

Pump.fun, a Solana-based memecoin factory, has seen varying levels of success among its users, with a recent analysis revealing that only a small fraction of wallets have realized significant profits.

According to onchain analytics expert Adam Tehc, "If you've realized $10,000 trading Pump.fun's tokens you're a top 0.412% wallet." This metric showcases the substantial gains achieved by a select few traders on the platform.

The analysis, which was conducted using Dune data, highlights the disparity in earnings among Pump.fun users. Of the 13.55 million wallet addresses, only 55,296 wallets reported profits exceeding $10,000.

The data further reveals that a mere 0.048% of wallets realized profits above $100,000, while an elite 0.00217%—amounting to only 293 wallets—reported profits exceeding $1 million.

However, Pump.fun founder Alon has expressed concerns regarding the accuracy of the reported figures, arguing that they exclude specific high-profit transactions.

"There are many issues with this analysis. FIRST and foremost, buying coins after they have already bonded to Raydium is NOT included when calculating your pnl," explained Alon.

The analysis also excludes unrealized profits, which adds another layer of complexity to the assessment. Wallets with the highest profitability are often those that invested in an asset early on, displaying strong conviction in their choices. Many traders, aiming for higher gains, continue to hold their positions.

Alon provided an example to illustrate the issue, stating that "If you bought Fartcoin at $200k and sold today (a return of over 4,000x), your pnl would be $0."

Another interesting aspect highlighted by the analysis is the prevalence of wallets that have only completed a single transaction—usually a sale—on Pump.fun. These wallets, which are largely inferred to belong to bots or AI agents, constitute around 30% of the total wallets on the platform.

Pump.fun has played a significant role in Solana's ecosystem by introducing a user-friendly token launchpad that facilitates the creation and trading of memecoins.

Despite some early controversies, such as the misuse of the platform's live-stream feature, Pump.fun has lowered the barriers to entry, encouraging broader participation in the creation and trading of memecoins.

The data unveils a stark contrast between the experiences of average traders and those at the top, showcasing the varying levels of success attainable within Pump.fun's unique and often unpredictable realm.