1,700 wallets lost more than $100,000; only 311 gained over $1 million.
UK banned the site in 2024; a lawsuit was filed against it in January 2025.
Pump.fun plans to raise $1 billion through the upcoming PUMP token launch.
Pump.fun, the Solana-based meme coin launchpad, is facing scrutiny as new data reveals that more than half of participating wallets have suffered losses.
According to a Dune Analytics report cited by BeInCrypto, at least 60% of wallet addresses that interacted with Pump.fun over the past six months ended up posting losses.
The findings come just ahead of Pump.fun’s highly anticipated $1 billion PUMP token launch.
While the event has fueled significant buzz, it has also coincided with fresh selling pressure on Solana (SOL), the ecosystem’s base chain.
Millions lost, few gain as profit disparity widens
Of the 4.257 million wallets that traded more than 10 tokens on Pump.fun, 2.4 million (56.6%) registered cumulative losses between $0 and $1,000.
Nearly 1,700 addresses lost more than $100,000, and 46 wallets suffered losses in excess of $1 million.
By comparison, only about 5,000 addresses made over $100,000 in gains, and a mere 311 wallets reported profits above $1 million.
A breakdown of May 2025 profit-and-loss data shared by crypto analyst Miles Deutscher on X revealed that over 51% of wallets lost more than $500.
Just five wallets (0.0015%) earned between $50,000 and $100,000, underscoring the sharp imbalance in wealth generation across the platform.
Most profitable wallets gained only modestly, with 916,500 wallets earning between $0 and $1,000, further challenging claims of accessible wealth creation.
Trading bots, scams, and retail risk dominate platform activity
Pump.fun was initially positioned as an easy-to-use platform where anyone could launch a meme token on Solana for less than $2.
However, recent data casts doubt on its fairness and transparency.
Solidus Labs research cited in the same report found that 98% of tokens launched on Pump.fun showed signs of fraudulent activity or lacked real liquidity. Just 1.4% of tokens had active, verifiable markets.
With so few functioning tokens, analysts question whether Pump.fun is advancing DeFi adoption or simply enabling low-cost scams under the guise of community-driven decentralisation.
Pump.fun’s past regulatory issues have also resurfaced. The site was banned in the UK in 2024, and it is currently facing a lawsuit filed in January 2025.
The legal case, still ongoing, has amplified caution among both institutional and retail investors, particularly as the platform prepares for its high-profile token launch.
Solana hit by selloff ahead of $1B token sale
As the PUMP token prepares to go live, market participants are already reacting.
The launch aims to raise $1 billion through a community-distributed token model. However, the growing anticipation is triggering rotation away from Solana’s native token.
Traders are reallocating capital to speculate on the PUMP launch, causing downward pressure on SOL in recent weeks.
Deutscher noted in a separate post that this capital shift reflects how investors previously used SOL as a proxy for Pump.fun’s fee generation.
Now, with a direct token offering in place, SOL is no longer necessary as an intermediary asset.
This shift could weaken Solana’s near-term liquidity profile and complicate the network’s broader decentralised finance strategy.
Despite being a breakout player during the early 2025 meme coin rally, Pump.fun’s trajectory is now marked by significant risk.
The narrative of financial democratisation is undercut by hard data, which shows that 312,191 wallets — or 95.6% — either broke even or lost money.
Whether the PUMP token can reverse sentiment remains unclear, especially with regulatory and reputational clouds looming overhead.
