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Market structure

Pumpfun: risk and speculation · 18 Feb 2026

Let me be clear: hodling is rewarded even less. Trading (gambling) and pump and dumps are reinforced.

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01

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Well @Pumpfun chose to make it even worse.

We are even more cooked.

Let me be clear: hodling is rewarded even less.
Trading (gambling) and pump and dumps are reinforced.

Here is the breakdown:

➡️What the update actually does

Before:
Creator receives the fees

Now (optional “cashback coin”):
Traders receive the fees. Sounds good at first. It is not.

The reward shifts from deployer → trading activity.

That means:
high volume = more rewards
not long holding = more rewards

➡️ Structurally this favours active trading, not passive holding.

The system clearly favours traders over long term holders.
It strengthens volume driven behaviour, which is the core fuel of pump and dump cycles.

It does nothing to reward long term building.

➡ ️Does it increase even more pump and dumps?

Yes.

Because:
rewards scale with trading activity
fast rotations generate more fees
attention shifts to short term volume

That creates incentives for:
churn
volatility
meta trading

Pumpfun was already a pure short/ volume driven memecoin environment.

It financially amplifies pump and dump now even more.

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@pumpfun

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