A recent statement from a Coinbase executive reveals that most tokens launched on Pump.fun and LetsBonk are created by automated systems, raising concerns over transparency and quality in new memecoins.
The Problem of Automated Token Creation
Conor Grogan, the head of product at Coinbase, states that "the great majority of tokens launched on PumpFun and LetsBonk are today run by bots." He shared a chart indicating that certain accounts on LetsBonk launched 4,281 tokens in the past 24 hours.
Comparison of LetsBonk and Pump.fun
LetsBonk, a Solana-based platform, was launched in late April as a rival to Pump.fun and has gained popularity due to its tokenomics and rewards. According to DefiLlama, LetsBonk generated $1.23 million in revenue in the last day, nearly double that of Pump.fun.
Overall State of the Memecoin Market
Despite the high activity on these platforms, the total market capitalization of memecoins has continued to drop. CoinMarketCap reports a 2.6% decline, bringing the market cap to $54.7 billion. The memecoin market shows a general trend of decreasing interest after peaking at $127.3 billion in December.
With the growing automation in token creation and the overall decline of interest in the memecoin market, it's essential to monitor changes and new initiatives in this field.
