Justin Sun has recently launched SunPump, a meme coin generator linked to the TRON ecosystem, in a bid to tap into the segment’s craze.
However, the move comes as skepticism grows within the crypto community regarding the sustained viability of meme coins, leading many to question whether the hype is already dead.
Can SunPump Break Through in a Crowded Meme Coin Arena?
Launched through Sun.io on August 13, SunPump allows users to create meme coins quickly. It aims to replicate the success of similar platforms like Solana’s pump.fun.
SunPump, promoted as TRON’s first meme coin launchpad, charges a creation fee of 20 TRX and a 1% trading fee. According to the platform’s documentation, when a project reaches 100% of its bonding curve at $69,420, the smart contract performs two key actions. First, it deposits approximately 100,000 TRX and then transfers the remaining 200 million tokens to the SunSwap V2 liquidity pool.
Read more: What Are Meme Coins?
Yet, the timing of this launch has raised eyebrows. Many in the crypto sphere are concerned that the meme coin frenzy might be on its last legs.
Fred, a former co-founder of Crypto Banter, recently voiced his concerns. Despite the potential for significant gains, he observed that these coins are among the first to be sold off when market sentiment shifts.
“The market is in a weird space because the reality is that pump.fun is diluting the meme coin market significantly and taking a lot of retail money, with most lost in a matter of weeks or days. You MUST trade knowing exactly this,” Fred remarked.
Moreover, recent reports suggest that the meme coin market is becoming oversaturated. Data shows only a tiny fraction of tokens achieving lasting success.
For example, out of thousands of meme coins launched on platforms like pump.fun, only 41 have maintained a market capitalization exceeding $1 million for several weeks. This figure represents just 0.0002% of all tokens, showcasing the intense competition in a crowded market.
The situation has also become more complicated because pump.fun recently changed its fee structure. Now, users can create meme coins for free, but the $2 fee has been shifted to the first buyer. This policy change could result in a flooded market with new tokens, leading to further market saturation.
Despite these concerns, Justin Sun appears to continue aggressively improving SunPump. In his latest X posts, he assured that the platform has had technical upgrades, enhancing its operation.
“This is just the beginning! To the Sun!” he declared.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Will SunPump manage to carve out a niche in an increasingly crowded market, or is there still time for another meme coin launchpad to thrive? The crypto community remains unsure, and only time will tell if Sun’s latest venture can defy the odds.
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