The altcoin market has been disrupted by the Solana-based token-launching platform, Pump.fun, according to crypto analysts. The platform has diverted liquidity away from traditional crypto assets, leading to a delay in the anticipated altcoin season. Retail investors have been drawn to illiquid on-chain meme coins, resulting in significant losses for latecomers. Pump.fun has had a major impact on the market, with over 5.1 million tokens launched and $471 million in revenue generated since April 2024. Critics argue that Pump.fun is a liquidity black hole and an insider-engineered liquidity heist, as it has funneled funds into centralized exchanges, draining the altcoin ecosystem. However, some analysts question the platform's significant influence on the broader altcoin market. The rise of Pump.fun is also attributed to the stringent crypto regulations that have made fair project launches difficult, forcing participants to explore decentralized alternatives.



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