TLDR
- Meme coins have become a dominant force in crypto, with Pump.fun facilitating over 6 million token launches since January 2024, highlighting the scale of speculative trading
- Political figures got involved – Trump’s meme coin reached $15B market cap, while Argentina’s President Milei faced backlash over the LIBRA token scandal
- Pump.fun’s daily volume dropped 27% (from $184M to $134M) following the LIBRA controversy, suggesting cooling interest
- Industry experts are divided on whether meme coins help or hurt crypto adoption, with some seeing them as gateways while others view them as liquidity drains
- The LIBRA scandal has sparked calls for regulation and exposed how insiders can disproportionately benefit from meme coin launches
The explosive growth of cryptocurrency meme coins is showing signs of slowing down after recent political controversies and market volatility have shaken trader confidence.
Pump.fun, the leading platform for creating and trading meme tokens on the Solana blockchain, has seen its daily trading volume fall 27% from $184 million to $134 million following a scandal involving Argentine President Javier Milei and the LIBRA token.
The platform, which launched in January 2024, had facilitated the creation of over six million meme coins before the downturn. Most of these tokens serve no purpose beyond speculation, yet they’ve attracted billions in trading volume.
The political connection to meme coins gained attention when Donald Trump’s token reached a $15 billion market cap before settling at $3.35 billion as of February 19. His wife Melania also launched her own token, which drew high trading volumes.
The LIBRA controversy erupted when President Milei appeared to endorse the token on social media. Hours later, he removed his posts and claimed he had little knowledge about the token, saying he thought it was a company looking to finance private ventures.
On-chain evidence suggested that LIBRA’s developers profited quickly from the launch, while many investors suffered losses after the token’s value crashed. The incident has led to fraud complaints from Argentine lawyers and sparked debate about regulation.
The fallout has affected Pump.fun’s metrics beyond trading volume. The platform registered only 59,000 new wallets on Tuesday, its lowest level of fresh engagement since November 2024. The number of new meme coins launched daily has also dropped from 61,800 to 27,800.
Beyond The Meme Money
Industry experts have mixed views on the impact of meme coins. Daria Morgen, Head of Research at Changelly, believes these tokens can attract new users to crypto.
“Many start with meme coins but eventually explore more serious projects,” she said.
However, others warn about market manipulation risks. Tobin Kuo, CEO of Seraph Studios, compared the current state of crypto to “the world’s largest casino,” noting that new investors focus on quick profits rather than blockchain innovation.
The ease of creating tokens through platforms like Pump.fun has raised concerns. Anyone can launch a meme coin instantly, without technical knowledge or identity verification. This has led to numerous pump-and-dump schemes where early investors profit while others face losses.
Jessica Zheng, CEO of Cycle Network, points out that meme coins initially helped draw Web2 users to crypto but have since promoted short-term thinking.
“The market feels more short-sighted and less focused on sustainable growth,” she explained.
The LIBRA scandal has intensified calls for oversight. Hedi Navazan, Chief Compliance Officer at 1inch Labs, warns that lack of regulation makes meme coins vulnerable to fraud and market manipulation. The topic became a key discussion point at the World Economic Forum in Davos 2025.
Some industry figures believe the trend may be ending. Nic Carter, partner at Castle Island Ventures, declared meme coins “unquestionably over” after the LIBRA incident exposed how insiders benefit disproportionately from launches.
Despite the downturn, Pump.fun continues to generate substantial fees, earning $2 million in daily revenue on Solana. The platform dominated Solana’s decentralized exchange activity in January, accounting for over half of all transactions.
Legal challenges have emerged alongside market concerns. A class action lawsuit filed against Pump.fun claims the platform operated an illegal securities exchange by helping create over 50,000 unregistered tokens. The suit alleges the company collected nearly $500 million through transaction fees.
