So Pump.fun just hit $100 million in revenue, and they did it in less than a year. That’s some serious cash flow for a platform that’s basically built around memecoins. On one hand, this kind of number is eye-popping and shows there’s a ton of action happening on the site. But when you dig a little deeper, things get a bit murky.

The Good: A New Player in the Crypto Game

First off, let’s talk about how they’re making this money. Pump.fun takes a 1% cut from every transaction on their platform. And guess what? That percentage has been raking it in—so much so that it’s outpacing Ethereum in daily revenue. This isn’t some obscure fee structure; it’s straight-up user engagement that’s driving this figure up.

The platform itself is super easy to use, and it costs next to nothing (like $3) to create your own token. So naturally, everyone and their grandma are getting involved. This low barrier to entry is part of why we’re seeing such wild numbers.

The Not-So-Great: A Volatile Landscape

Now for the not-so-great parts. Memecoins are notoriously volatile—like, hold onto your butts kind of volatile—and that means Pump.fun’s revenue could dry up faster than you can say “rug pull” if the trend shifts suddenly. And let’s be real: how many tokens can one market handle before it all collapses under its own weight?

Then there’s the ethical angle. Celebrities launching their own coins? That’s like giving candy to kids and then filming them as they go into sugar comas. Caitlyn Jenner launching multiple coins was the cherry on top—she pumped, she dumped, and then she went on with her day.

The Regulatory Sword of Damocles

And we can’t forget about regulation looming over platforms like Pump.fun like a dark cloud ready to rain down some serious consequences. The SEC is already sniffing around, and you know they don’t play nice with platforms that look like they’re enabling pump-and-dump schemes.

In short, while the revenue model looks great now (and who doesn’t love a good memecoin?), its sustainability is another story entirely. If they can’t clean up their act or if the market decides it’s had enough of memecoins, we might just see this number drop faster than Bitcoin after bad news.

So yeah, it’s impressive at first glance—but I wouldn’t be betting my house on Pump.fun lasting forever.

The author does not own or have any interest in the securities discussed in the article.