Is it fair or multiple? Interpret the dominance of Pump from the imitation plate promoted by the founder of Whales Market

Original | Odaily Star Daily

Author | Nan Zhi

Last night, Whales Market founder @dexter_cap launched a platform similar to Pump.fun called Whales.meme, and airdropped the platform's first token GMCAT to GM presale participants and xWHALES holders. At one point, GMCAT's market cap surged to over $10 million, but has now dropped to $2.5 million. Why did this platform only survive for one night? Odaily Star Daily will interpret the platform and its differences from Pump.fun, and analyze the source of Pump.fun's dominance.

Whales.meme

Whales.meme operates in the same way as Pump.fun. First, for developers, they can create a new token within seconds by providing the token name, image, and description. They can also add information such as TG, X account, website, etc. to attract users and build a community.

For users, they mainly trade within the internal market. When a certain progress is reached, the platform will combine the invested funds and tokens to form LP and activate DEX trading.

Whales.meme has made a crucial change in the details, replacing the term "internal shares" with "equity system". In the internal trading, each token is divided into 200 shares, and users can only trade 1 share at a time. Tokens will be allocated to users based on their share ratio after the market opens. On the other hand, Pump does not impose any restrictions on the number of transactions by users. In extreme cases, it can be a single address buying all the chips or thousands of addresses.

Where does the dominance of Pump.fun come from?

Apart from GMCAT, the first token issued by the Whales.meme platform is NYL, with a current market capitalization of only $20,000. Typically, the first token on a platform would have a decent performance, so why is its actual performance so poor?

First of all, product quality is a key factor. Websites that crash easily and limited purchasing channels restrict users' desire and path to purchase. However, the fundamental issue lies in the product-market fit.

Pump has been launched for about 5 months. It is particularly simple in terms of functionality and has also seen multiple micro-innovations in imitation trading. However, Pump still maintains a significant dominant position. Why? We believe that these imitations are more focused on "fairness", but the market or users fundamentally want a "purest and most profitable casino".

Why do users buy Meme? For the majority of users, it is mostly for the purpose of acquiring a token with a high multiple in order to gain substantial profits. The high multiple difference in Pump.fun's internal trading market, although it is a convenient means for DEV to harvest, also presents the possibility for users to "get rich quick". Whales.meme's separation of shares in the internal trading market has the advantage of making it difficult for DEV to purchase a large amount of chips and dump them on users. However, it also means that users can only buy a small amount of tokens, making it difficult to have enough profit space.

Why does fair narration fail here? During the heyday of inscriptions, "fair launch" was considered the fundamental factor that subverted other tokens. Why doesn't fairness work in Pump.fun mode? The answer lies in "multiplier" is the driving force, and "fairness" is just icing on the cake. In the early days of inscriptions, the cost of engraving a set of high-total inscriptions was only hundreds of thousands of dollars, such as rats, mice, etc., and there was still a lot of room for growth, so users were willing to participate. However, during the frenzy period, such as VMPX in May 23rd and the rune in the previous month, the extremely high cost and initial market capitalization compressed the upward space. The so-called "those who should have gotten on board have already gotten on board," resulting in a large number of openings at their peak.

Therefore, fair projects will not be the disruptors of Pump.fun. The real challengers will either be homogeneous products that further improve services and products, or purer Meme casinos. However, in the current environment where harvesting and PvP are increasingly serious, perhaps what will defeat Pump.fun is itself, after draining user funds, energy, and psychological expectations.

Reference Reading

Pump PVP Handbook: Scythe and Sucker Promote Mutual Evolution

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