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Automated bots dominate the creation of memecoins on platforms like Pump.fun and LetsBonk, according to Coinbase’s head of product, Conor Grogan.
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Data reveals that a handful of wallets are responsible for launching thousands of tokens at an unprecedented rate, highlighting the mechanized nature of memecoin proliferation.
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“The great majority of tokens launched on PumpFun and LetsBonk are today run by bots,” Grogan stated, emphasizing the rapid token generation pace observed on LetsBonk.
Automated bots drive memecoin launches on Pump.fun and LetsBonk, with LetsBonk outpacing in revenue and token creation amid a declining memecoin market.
Bot-Driven Token Creation Surges on Memecoin Platforms
Recent analysis from Coinbase’s Conor Grogan underscores the overwhelming influence of automated bots in the memecoin ecosystem, particularly on Solana-based platforms Pump.fun and LetsBonk. Grogan’s data highlights that just 13 wallets have generated over 4,200 tokens within a 24-hour window, demonstrating an extraordinary rate of token deployment. This mechanized activity raises questions about the sustainability and authenticity of memecoin projects, as the majority of these tokens are created not by individual developers but by automated scripts designed to flood the market.
High Frequency Token Launches and Their Market Impact
Grogan’s chart reveals that the top accounts on LetsBonk launch a new token approximately every three minutes, a pace that is difficult to match manually. Despite the sheer volume, only a small fraction of these tokens “graduate” — meaning they achieve sufficient trading volume to be listed on decentralized exchanges and gain broader market exposure. For instance, the “BwaV” wallet, the most prolific creator among the top 25, has only 30 tokens that have graduated out of thousands launched. This disparity suggests that while bot activity inflates token counts, genuine market acceptance remains limited.
LetsBonk Surpasses Pump.fun in Revenue and Token Deployment
In the competitive landscape of memecoin creation platforms, LetsBonk has emerged as the leader in both revenue generation and token launches. According to DefiLlama, LetsBonk generated $1.23 million in revenue over the past day, nearly doubling Pump.fun’s $520,400. Additionally, Dune Analytics data shows LetsBonk has facilitated the launch of more than 22,000 tokens compared to Pump.fun’s 9,800 within the same timeframe. This growth is partly attributed to LetsBonk’s integration with the Bonk (BONK) token, which incentivizes users through rewards — a feature Pump.fun has yet to implement.
Token Creation Incentives and Platform Dynamics
The introduction of reward mechanisms like BONK on LetsBonk has likely contributed to its rapid adoption and higher token deployment rates. These incentives encourage users and bots alike to engage with the platform, driving up transaction volumes and revenue. However, this dynamic also amplifies concerns about the memecoin market’s speculative nature, as the majority of tokens created are short-lived and primarily serve to capitalize on hype rather than long-term utility.
Memecoin Market Value Declines Amid Speculative Shift
Despite the surge in token creation and platform revenues, the overall memecoin market capitalization has experienced a downturn. CoinMarketCap reports a 2.6% decline in memecoin market value over the last 24 hours, bringing it down to $54.7 billion. This continues a broader downward trend from the segment’s peak of $127.3 billion in December 2023, reflecting a shift in trader sentiment away from highly speculative assets. The initial boost in memecoin valuations around LetsBonk’s launch in April was short-lived, underscoring the volatility and risk inherent in this niche.
Market Trends and Future Outlook for Memecoins
The memecoin sector’s contraction signals a maturation phase where only tokens with genuine community support or innovative features may sustain value. While platforms like LetsBonk and Pump.fun continue to thrive on volume and bot-driven activity, the decreasing market capitalization suggests that traders are becoming more discerning. This evolving landscape may prompt platforms to innovate further, possibly by introducing stricter token vetting or enhanced utility to attract long-term investors.
Conclusion
The dominance of automated bots in memecoin creation on Pump.fun and LetsBonk highlights both the opportunities and challenges within this rapidly evolving market. While LetsBonk currently leads in revenue and token launches, the overall memecoin market is contracting, reflecting changing trader priorities. Moving forward, the sustainability of memecoin platforms will likely depend on their ability to balance high-volume token creation with genuine market demand and utility, ensuring a healthier ecosystem for all participants.
