Galaxy Research’s latest report finds that memecoins draw new users into crypto, but the spoils go to enrich launchpads, exchanges and bots rather than traders themselves.
Memecoins may attract new users to blockchains, but the profits largely flow to the platforms that launch and trade the tokens, according to a new report from Galaxy Research.
The study released on Wednesday shows that while most traders lose money in a short-term gambling market, infrastructure providers such as launchpads, decentralized exchanges and trading bots capture millions in revenue by facilitating memecoin trading.
Solana’s Pump.fun, a memecoin launchpad that debuted in early 2024, has been a major beneficiary, with tokens on the platform representing a combined $4.8 billion in fully diluted market value, as per the report.
