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Lightspeed is a new addition to Blockworks Newsletter. Solana is all about news, culture and analysis. You’re welcome to join us if this sounds like you. We’re ready to go!
The majority of traders won’t make it big with memecoins but they will try.
According to DeFiLlama, Pump.fun, a memecoin exchange platform, has generated around $500,000. For context, that’s nearly double Ethereum’s dominant decentralized exchange, Uniswap, and the second highest for protocols writ large — trailing only Ethereum.
Pump.fun charges around $2 for launching tokens that don’t have seed liquidity. The exchange earns money by charging a swap fee of 1% to users who buy and sell tokens. It also charges 2 SOL if a token has enough liquidity for it to be listed at the Raydium decentralized exchange. A Pump.fun Telegram administrator told Blockworks that Pump.fun has closed APIs and is closed source.
The platform says it prevents rug pulls — or exit scams where founders quietly shut down projects while absconding with investor funds — by keeping all launches under a strict no-presale, no-insider allocation regime.
The platform has not stopped the traders from making a lot of losses. Token creators can buy a lot of tokens before traders arrive. There’s no stopping the token from generating interest. “developer” It’s easy to dump their stock, crash the prices, and make a profit of (let’s be honest) several dollars.
Note that Pump.fun Tokens with market capitalizations of up to $69,000 are eligible for listing on Raydium. This has been a rallying call among users (let’s get this coin listed at Raydium!) There’s nothing stopping a well-stocked dev from taking the liquidity, and running.
In other words, the average user has the deck stacked against them on Pump.fun, which begs the question of what makes Pump.fun so fun — because clearly, people are using the platform.
Some people go to casinos knowing they will lose. I guess the fun of trying to find a memecoin that is a winner could be enjoyable.
The grift can be entertaining in and of itself.
The token was created by one developer. “NoHandsNoRug” Live streamed his own video from several feet away with his hands in his pocket. When the price rose, he ran over to his PC, bought a few tokens and then returned to his desk.
Always use crypto.
Zero In
Solana’s transaction success rate has gotten better but it’s still … not great. Blockworks Research says that more than 60% of transactions involving non-votes fail. However, this number might not be quite as dire as it appears. According to Blockworks Research’s Dan Smith, the high failure rate may be more indicative of spam rather than poor user experiences. Accounts that make over 5,000 transactions a day — either bots or people who really should touch grass — experience a fail rate of 79%. The failure rate for people who make fewer than fifty transactions per day is around 8%.
Plugged in
Want to blow your mind?
Jito, the Jito protocol that supports 78% of Solana validators’ transactions, has helped Solana validaters earn more than Ethereum for maximal extractible values (MEV). Last week they earned nearly $7,000,000. The protocol — which supports 78% of Solana’s validators — enables transaction bundling and tip inclusion for quicker processing.
But there are other issues, like bot activity and spam. “sandwich attacks” Continue to present challenges for the Solana eco-system.
The One Good DM
Jack Kubinec:
What is the main factor that prevents crypto-payments from becoming more widely accepted?
Stijn Paumen, Helio is the founder and CEO behind Shopify’s Solana Pay.
Apple Pay has become the standard. To become mainstream, crypto payments must match Apple Pay’s convenience. We’re still some years from this, but the increasing adoption of cryptos and the integration of hidden wallets in mainstream apps brings us closer to it than ever. Crypto payments, with their lower transaction costs, increased privacy and speedier transactions, will eventually surpass Apple Pay.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
