Pump.fun has become one of the leading platforms to launch altcoins.
In fact, to be precise, on Pump.fun tokens are launched, not cryptocurrencies. The tokens launched on Pump.fun are generally specifically memecoins, and in many cases, they are real shitcoins, if not worse.
The true difference between criptovalute and token
Once, most altcoins were true cryptocurrencies, meaning native tokens of their specific blockchain (like Ethereum, XRP, Litecoin, etc.).
At a later time, some cryptos were launched that were memecoin, like Dogecoin, but with their own native blockchain.
Then the tokens arrived.
The actual tokens do not have their own blockchain, but are launched on the blockchain of another cryptocurrency. For example, Shiba Inu is a token launched on the Ethereum blockchain.
The fact is that launching a new cryptocurrency with its own blockchain is definitely complex, while creating a token on an already existing blockchain is relatively easy.
In fact, Pump.fun has made it very easy and very economical, so much so that it has generated a real boom of tokens. If in the previous cycle of the crypto markets they were counted in tens of thousands, now they are counted in millions.
Altcoin and memecoin on Pump.fun
“Altcoin” refers to all cryptocurrencies and tokens that are not Bitcoin. Therefore, not only do cryptos like Ethereum or Solana fall into this category, but also crypto memecoins like Dogecoin, and all the tokens that are continuously launched.
Therefore, it would be incorrect to consider altcoins as a whole, because in reality this category is divided into sub-categories with very different characteristics from each other. For example, Ethereum has nothing to do with Trump’s token, and vice versa.
To tell the truth, the most numerous sub-category, that is, the one with the most tokens, is that of the so-called shitcoin, or tokens that serve no purpose. Among these, unfortunately, a good part are in all respects fraudulent tokens.
On Pump.fun, shitcoin are primarily launched.
Theoretically, it is not certain that memecoins must necessarily be considered all shitcoins, so much so that, for example, Dogecoin also had a period of great splendor in the past thanks to Elon Musk. However, this does not change the fact that the vast majority of memecoins are actually shitcoins, nor does it change the fact that it is still legitimate to have strong doubts about those that theoretically are not.
The idea of the co-founder of Pump.fun: altcoin on par with memecoin
According to Alon Cohen, co-founder of Pump.fun, most altcoins would have the same purpose as memecoin.
He wrote it on his personal X profile in a post in response to the insinuation that Pump.fun has altered the altcoin market cycle.
Cohen states that the fault is not with Pump.fun, but confirms that expecting the same playbook from the last cycle to occur today does not seem to be realistic.
Writes:
“the value proposition of most of these coins is similar to that of a pump fun shitter but with a low float, a high FDV + huge VC bags”.
Then he adds:
“Retail investors have been burned too hard in the last cycle to return to investing in the future of finance”.
No altseason?
The fact is that many altcoin holders have been waiting, for quite some time now, for a new true altseason to finally monetize after several years.
However, this altseason is struggling to come.
The hypothesis circulating is that the classic cycle of the crypto markets, linked to that of Bitcoin, has been skipped, and that there might not even be a true altseason anymore.
In reality, after Trump’s electoral victory, there was already a mini-altseason, but it was not a true altseason.
Furthermore, it is absolutely not certain that time has run out, because there are at least another three months for a true altseason to begin.
Certainly, however, this time the competition among altcoins is exaggerated, and this will very likely spread the incoming capital across more altcoins compared to the past. This is why many expect the current cycle to be different from the past, as far as altcoins are concerned. Also because, for example, at one time Ethereum had no real rival, whereas now there is Solana.
Bitcoin, on the other hand, is a separate matter. It continues to have no real rival, and it is following a path in some ways similar to that of the past, although strongly influenced by the somewhat unusual trend of the Dollar Index.
