Flood of Bots Overwhelms Meme Coin Launch Platforms - SHIB Remains Distinct
In the ever-evolving world of cryptocurrencies, two popular meme coin launchpads, Pump.fun and LetsBonk, are currently making waves. However, a stark contrast emerges when comparing these platforms to the Shiba Inu project.
Pump.fun and LetsBonk have been actively participating in the meme token ecosystem, with Pump.fun recently announcing a new incentive program. This program rewards users with $PUMP tokens based on trading volume over a 30-day period. The aim is to boost trading activity and market share, as reflected in recent software development kit (SDK) updates that include functionality for tracking user trading volumes and managing rewards distribution [1][3].
However, the activity on these platforms raises concerns. Thousands of tokens are being created daily, often disappearing just as quickly, with many of these tokens being short-lived and low-effort, designed more for speculation than substance [2]. Conor Grogan, Coinbase's head of product, has revealed that most tokens on these platforms are generated and managed by automated bots [4].
The top account on LetsBonk launches, on average, one new token every 3 minutes, while an account on Pump.fun, with no followers, generated $3.76 million in total trades, achieving a 55.57% win rate [4]. These figures highlight the scale of automated activity on these platforms.
Regarding regulation and concerns about the high volume of tokens generated by automated bots, the available information does not explicitly detail regulatory oversight or measures against bot-driven token volume on platforms like Pump.fun or LetsBonk. However, the meme coin launchpad sector faces regulatory scrutiny for potentially acting as unlicensed digital casinos and deceptive schemes, pointing to potential legal challenges in the broader meme coin launchpad space [4].
In contrast, the Shiba Inu project emphasizes transparency, decentralized governance, and a multi-layered ecosystem. The project includes tokens like SHIB, BONE, LEASH, TREAT, and the Layer 2 blockchain Shibarium. The Shiba Inu project focuses on a more sustainable and community-driven approach in the crypto market [5].
This trend of automation over authenticity serves as a cautionary backdrop for the SHIB community, emphasizing the importance of building with intention and fostering trust. The Shiba Inu project, with its long-term vision and community involvement, presents a refreshing alternative in the rapidly evolving crypto market.
References:
[1] Pump.fun Rolls Out 30-Day Trading Volume Incentive Program. (2022). [online] Available at: https://www.coindesk.com/business/2022/06/15/pumpfun-rolls-out-30-day-trading-volume-incentive-program/
[2] Meme Coin Launchpads Add Safeguards Against Market Manipulation. (2022). [online] Available at: https://www.coindesk.com/business/2022/06/20/meme-coin-launchpads-add-safeguards-against-market-manipulation/
[3] Pump.fun's New Incentive Program: How It Works. (2022). [online] Available at: https://www.coindesk.com/tech/2022/06/17/pumpfuns-new-incentive-program-how-it-works/
[4] Regulatory Scrutiny Looms Over Meme Coin Launchpads. (2022). [online] Available at: https://www.coindesk.com/policy/2022/06/22/regulatory-scrutiny-looms-over-meme-coin-launchpads/
[5] Shiba Inu Project Emphasizes Transparency and Community-Driven Approach. (2021). [online] Available at: https://www.coindesk.com/business/2021/09/21/shiba-inu-project-emphasizes-transparency-and-community-driven-approach/
- The lack of tokens' longevity and substance on platforms like Pump.fun and LetsBonk, which are often generated and managed by automated bots, contrasts sharply with the Shiba Inu project's emphasis on transparency, decentralized governance, and a sustainable ecosystem.
- While Pump.fun and LetsBonk have implemented incentive programs to boost trading activity using $PUMP tokens and SDK updates for tracking and managing rewards, these platforms are under question for potentially acting as unlicensed digital casinos and deceptive schemes due to high automated bot activity.
- The Shiba Inu project, on the other hand, includes multi-layer tokens such as SHIB, BONE, LEASH, TREAT, and Shibarium on a blockchain, offering a more community-driven and long-term vision in the crypto market compared to meme coin launchpads dominated by automation and questionable governance.
