The number of new token releases on the Pump.fun platform has dropped by more than 80%

According to Dune Analytics, a cryptocurrency data platform, the number of newly listed meme coins successfully listed on Pumpfun in February this year fell by more than 80% compared to January.

The number of new token releases on the Pump.fun platform has dropped by more than 80% as a series of meme-coin-related scandals have dampened sentiment among retail investors.

According to cryptocurrency data platform Dune Analytics, the number of newly listed meme coins that were successfully launching on Pumpfun in February this year fell by more than 80% compared to January.

The number of new token releases, which averaged 1,200 per day on January 23-24, plunged to 200 on February 26.

This reduction in meme coins at the pump has also impacted Solana.

This is because Pumpfun's token launch process takes place through a bonding process that creates initial liquidity based on Solana and then transfers it to Raydium, Solana's flagship DEX (decentralized exchange).

However, the activity at Solana Network and Pumpfun in February has seen a sharp drop due to a series of meme coin-related scandals, as mentioned by analysts.

Firstly, there was the Libra scandal. On the 14th, the meme coin "LIBRA," which appeared to be related to Argentina's President Javier Milay, saw its market capitalization evaporate from $4.4 billion within hours of its launch.

Alon, the co-founder of Pumpfun, expressed his anger at the Libra crisis and attempts to create a fairer and safer meme coin launch environment through Pumpfun on X on the 17th.

But the situation didn't calm down. Finally, even the pump itself was hit by fraud. On the 26th, Pumpfun's X account was hacked, leading to an incident promoting the fake token "PUMP."

Solana reached a new all-time high of $295 on January 19 this year due to the activity of former U.S. President Donald Trump's meme coin (TRUMP), but it fell more than 56% from its highest price to the $127 level on the 28th.

"Since Solana chain-based virtual assets depend on investors' sentiment, prices continue to rise rapidly once they are bought, but conversely, even if a small piece of bad news occurs, virtual assets tied to meta can fall at once," explained Kim Byung-joon, a researcher at Disfred.

"Because of these characteristics, in order to succeed in investing in virtual assets, we need a wide range of information collection capabilities and the ability to quickly analyze and respond to the collected information," concluded Researcher Kim.