TL;DR
- The Pump.fun platform reached a record trading volume of $3.3 billion in one week, primarily driven by tokens related to Donald Trump.
- On January 23, Pump.fun surpassed $544 million in daily volume, while a large number of counterfeit tokens tried to capitalize on the popularity of Trump’s token launches.
- The platform has been criticized for using bots to inflate statistics and for scams, which has led to legal investigations and the shutdown of its livestream feature.
The Pump.fun platform, specializing in the launch of memecoins, reached a historic trading volume, surpassing $3.3 billion in one week.
This increase was primarily driven by tokens related to President Donald Trump. Since the launch of his own cryptocurrency, the TRUMP token, and the MELANIA token, there has been a surge of speculation surrounding these assets.
On January 23, Pump.fun reached a trading volume of over $544 million in a single day, marking a historic milestone for the platform. The rise in interest in memecoins also led to the appearance of a large number of counterfeit tokens attempting to capitalize on the popularity of Trump’s launches. According to reports, around 61 new tokens tried to pass themselves off as official assets by copying names, symbols, or descriptions.
The trend of creating Trump-related tokens spread to other cryptocurrency projects, such as Solana, with the emergence of a “Barron Trump” token, which briefly reached a value of $27 million before collapsing to less than $4 million.
Pump.fun Faces Controversies
However, the growth of Pump.fun has not been without controversy. The platform has been criticized for using automated activities, such as bots, to inflate token statistics in order to attract investors. This manipulation has been identified as a key factor in the increase of its trading volume.
Additionally, the law firm Burwick Law has begun investigating the platform due to the losses investors have suffered, especially from so-called “rug pulls” or scams within the memecoin market. Pump.fun was also forced to shut down its livestream feature, which had been used to promote extreme behaviors and shock tactics, such as animal abuse and graphic content, in order to drive up token prices.
