Pump.fun, $600 million liquidated... Moral controversy over meme coin profit structure

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Pump.fun, $600 million cash-out… Morality controversy over meme coin profit structure

Solana-based platform Pump.fun recently cashing out $600 million has sparked criticism over the imbalance between profit generation and user losses. The industry is increasingly discussing the ethics and responsibility structure of Web3 revenue models.

It has been revealed that Pump.fun has recently cashed out approximately $615 million(about 8,817 billion won) in profits over the past quarter, reigniting debates within the cryptocurrency community about the boundary between ‘profit generation’ and ‘profit extraction.’

“$600 million cash-out”… Focus on large profit realization

Pump.fun( is a Solana) SOL(-based meme coin launchpad, which reportedly earned about $74.1 million)about 1,062 billion won( in Q4 2025. Since its launch, the platform’s accumulated profit has reached $935.6 million)about 1.34 trillion won(. Notably, on-chain data analysis firm Arkham)Arkham( reports that during this period, the platform transferred a total of $615 million)about 8,817 billion won( to centralized exchanges. This is being criticized not just as simple profit realization but as ‘record-breaking fund extraction.’

Recently, Pump.fun was also observed transferring $50,000)about 71.7 million won( to the Kraken exchange within 24 hours. As this large-scale fund movement became known, the community is evaluating this quarter as the largest profit cash-out case in the current crypto cycle.

) “Voluntary use” vs “Market exit”… Diverging opinions

The core of the controversy lies in the method rather than the scale of profit. User Loshmi###Loshmi( pointed out, “Pump.fun’s accumulated profits are close to $1 billion, and it wouldn’t be surprising if they take over $500 million immediately and leave the market.” He compared Pump.fun to a pickaxe seller during a gold rush era, saying, “The real winners in this market are the platforms that take fees.”

Analyst Ted Pillow)Ted Pillow( criticized this phenomenon as “the largest profit extraction of this cycle,” and among some investors, there is a growing perception that Pump.fun’s profit structure is far more favorable than actual meme coin users.

On the other hand, YouTuber Crypto Gorilla)Crypto Gorilla( countered, “Why is it that only Web3 projects making profits are called ‘extraction)extraction(’?” and argued, “No one forced users to use Pump.fun, and individual losses are not the platform’s responsibility.”

) Rapid growth rate vs token failure rate

Pump.fun’s overwhelming profitability is thanks to the lack of costs. In 2024 alone, profits soared from $2.45 million###about 350 million won( in Q1 to $273 million)about 297 billion won( by year-end, peaking at $256.2 million)about 367.5 billion won( in Q1 2025. Although it slowed somewhat afterward, it still maintained over $70 million)about 100 billion won### in Q4 2025. Because there are almost no costs, most of these profits are directly converted into net income.

However, success rate is a different story. Pump.fun has issued over 14.82 million tokens so far, but the actual rate of ‘graduation’—tokens listed on exchanges or maintaining ongoing circulation—does not even reach 1%. In November 2025 alone, 514,000 tokens were created, but only 3,220 tokens ‘graduated.’ This indicates both the platform’s profitability and the speculative nature of its users.

( Questions about sustainability and market responsibility

Ultimately, the issue is not ‘how much was earned’ but ‘how it was earned.’ Pump.fun has demonstrated high profitability through a fee-centric business model but does not take responsibility for the losses borne by investors or users. The platform’s success implies most users’ failure, making profit realization a moral controversy.

The industry is expected to continue discussions on new ethical standards for Web3 projects and the responsibility structure between platforms and users, prompted by this debate.

Market interpretation

Pump.fun, which grew rapidly based on the meme coin craze, is now realizing large profits, bringing renewed attention to the balance between profit-making and user protection in the Web3 ecosystem.

Strategic points

‘Near-zero cost structure’ and ‘high profitability’ demonstrate the potential of platform business models. However, the low success rate of tokens and high recoupment rate could threaten long-term sustainability, requiring caution.

Terminology

• Profit extraction)Extraction: Critically describes behaviors where profits are taken through fees or token sales in the market, emphasizing rapid exit over value provision
• Token graduation: The stage where generated tokens achieve a certain level of liquidity or community support, enabling ongoing operation
• Meme coin: Tokens inspired by social trends or internet memes, often driven more by fun or speculation than practical utility