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Most meme coins on Pump.fun fail due to bonding curve mechanics that favor early buyers and risk late investors losing money.

Market News
04 Aug 2026
Crypto news
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Bearish
pluang ai news

Pump.fun uses a bonding curve smart contract to price meme coins, where early buyers pay less and late buyers pay exponentially more. Less than 2% of tokens launched on Pump.fun reach the 'graduation' phase to trade on a decentralized exchange, meaning most trading and losses happen on the bonding curve itself. Insiders often accumulate tokens cheaply early on and sell to later buyers, causing structural losses for most investors. Understanding these mechanics is crucial before investing in meme coins on such platforms.

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