New on-chain data circulating on X suggests over 95% of Pump.Fun users lost money trading meme coins. This increasing gambling type scenario ultimately cancelled an altcoin season the previous bull market, as many analysts believe.
Meanwhile, Pump.Fun has rolled out a new creator-fee restriction to improve trading conditions on the launchpad.
While social media claims overstate the data, the underlying picture is still bleak. Previous reports suggest that atleast 50.6% of wallets trading Pump.fun-launched tokens posted losses.
Only two wallets made more than $1 million.
A New Update to Reduce Manipulation?
Against this backdrop, Pump.fun co-founder Alon announced a protocol update to reduce manipulation. The change targets two behaviors: “vamping” and “griefing.”
In simple terms, vamping refers to extracting value from a community, such as dumping tokens into rising demand. Griefing involves actions that disrupt or harm traders, including sudden changes that break trust.
Specifically, the update limits how token creators handle fees.
Previously, creators could redirect fee earnings at any time, even after a token gained traction. This led to cases where fees were switched mid-cycle, triggering backlash and sell-offs.
Now, creators get only one chance to change fee distribution. After that, the setting becomes permanent unless a more complex governance process is used.
Existing tokens have also been adjusted to follow similar constraints.
The change improves transparency and reduces one form of creator manipulation.
However, it does not address the core drivers of losses. Token oversupply, early insider advantage, and rapid liquidity extraction remain unchanged.
As a result, while trust may improve at the margins, the broader market structure continues to favor a small minority of winners over the majority of participants.
