Deepr vs. Alternatives

Token launch platforms have proliferated, but many are fraught with issues that disadvantage projects and their communities. Deepr.fun is engineered to overcome these challenges, learning from the landscape of existing platforms, including the widely-used Pump.fun.

`Pump.fun`: Innovations and Market Impact

It’s important to acknowledge the significant impact Pump.fun has had on the memecoin and token launch space. Its primary contributions include:

Simplified Token Creation: Pump.fun dramatically lowered the barrier to entry for token creation. Users without coding expertise can launch a token in minutes, a process that was previously complex and time-consuming. This democratization of token issuance is a notable innovation.
Viral Marketing & Community Engagement: The platform initially incorporated features like livestreams (though later reportedly suspended due to moderation issues) and a straightforward interface that facilitated rapid, viral promotion of new tokens. This created a dynamic, fast-paced environment for coin launches.
Bonding Curve Mechanism: The use of a bonding curve for initial price discovery and token distribution is a core feature. While it has its own set of exploitable characteristics (discussed below), it offered a different paradigm for launching tokens compared to traditional Initial DEX Offerings (IDOs) that often require substantial upfront liquidity.

These innovations contributed to Pump.fun’s rapid adoption and its status as a major hub for memecoin creation, particularly on Solana.

Critical Analysis of `Pump.fun`’s Model & Outcomes

Despite its accessibility, the Pump.fun model has demonstrated several critical vulnerabilities and has led to concerning market dynamics and outcomes for many participants. A data-driven approach, including insights from platforms like Dune Analytics by oladee, reveals systemic issues:

Low Token Graduation & High Attrition Rates

A primary concern is the lifecycle of tokens launched on the platform. Note that tokens that do not “graduate” on Pump.fun typically do not even make it to an on-chain deployable contract on the main blockchain network.

Graduation to DEX: A very small percentage of tokens launched on Pump.fun successfully complete the bonding curve and “graduate” to be listed on a Decentralized Exchange (DEX) like Raydium.
- According to recent data (e.g., “This Month”) from Dune Analytics by oladee, approximately 1.0% of tokens launched on Pump.fun reach the Raydium liquidity pool stage.
Survival Post-Graduation: Of those that do graduate and get listed on a DEX, the vast majority struggle to maintain or grow significant value.
- All-time data for graduated tokens on Pump.fun (from Dune Analytics by oladee) indicates that approximately 99.23% (135,182 out of 136,234 total graduated tokens) end up with a market capitalization below $100,000. This suggests a widespread collapse in value or failure to gain significant traction even after reaching a DEX.
Overall Failure Rate: Combining these, with a ~1% graduation rate, and ~99.23% of those graduates staying below $100k market cap, the overwhelming majority of tokens launched effectively fail. Historically, other reports also highlighted that over 90% of all launched tokens ended with less than $100k market cap.

User Profitability Concerns

While the allure of quick profits draws many users, the PnL (Profit and Loss) data for traders on Pump.fun tokens paints a stark picture for the average participant.

Profitability Tiers (based on “This Month’s Traders PnL on Pumpfun Tokens” by oladee on Dune Analytics):
- A significant portion of wallets experience losses: Approximately 49.96% of participating wallets had a realized PnL of less than $0 (net loss).
- Of these losing wallets, the majority lost relatively small nominal amounts, with 44.3956% of all participating wallets registering a loss of less than $500.
- A very small percentage of wallets realize substantial profits. For instance, only about 0.0118% of wallets (summing brackets for >$100k, >$200k, >$500k, >$1M) achieved profits over $100,000.
- Modest gains were also limited: approximately 2.9% of wallets realized profits between $500 and $10,000 (summing $500-$1k and $1k-$10k brackets).
Concentration of Gains: This data suggests that profits are highly concentrated among a very small number of wallets. Numerous other analyses (e.g., by CoinTelegraph, Binance Square, and CoinMarketCap Academy) have historically reached similar conclusions: most traders do not realize substantial profits.

Prevalence of “Effective” Rug Pulls & Short-Lived Tokens

Despite claims of preventing traditional rug pulls (where developers run off with presale funds), the structure can lead to outcomes that are functionally similar for investors.

Ease of Abandonment & High Failure Rate: With approximately 99% of tokens launched failing to graduate to a DEX, and around 99.23% of those that do graduate subsequently maintaining a market cap below $100,000, the vast majority of projects can be considered effectively abandoned or result in significant value loss for most participants. This outcome is often akin to a rug pull for those investing beyond the very earliest stages.
“Soft Rugs”: Many tokens witness a rapid pump followed by an equally rapid dump, often orchestrated by the creator or early insiders, leaving later buyers with worthless assets.

Pervasive Bot Exploitation & Unfair Dynamics

The platform’s mechanics are highly susceptible to bot activity.

Sniping Bots: Data confirms widespread sniper bot activity, including sophisticated same-block snipers, extracting immediate value at the expense of legitimate users. The lack of robust, built-in anti-MEV mechanisms makes Pump.fun an easy target.
Unequal Playing Field: The model of allowing multiple participants to launch a token at different price points can create an “unequal playing field” or a “20 people PvP game,” where early entrants may dump on later ones.

Exploitable Core Mechanics & Security Incidents

The bonding curve, while simple, is predictable and has been exploited.

Undermining “Fair Launch”: Creators have been known to secretly buy their own tokens through external wallets, artificially inflate the price, and then dump on unsuspecting buyers.
Insider Exploits: Pump.fun itself suffered a significant exploit reportedly due to an insider manipulating the system by leveraging their privileged access to the platform’s contracts.

Shallow & Static Initial DEX Liquidity

A critical issue arises post-graduation.

Insufficient Liquidity: The fixed liquidity (e.g., ~$12k on Solana) added only after the bonding curve target (e.g., ~$69k market cap) is met often proves woefully insufficient for sustained trading, contributing to extreme volatility and price collapses once on a DEX.

Content Moderation Failures & Ethical Concerns

The platform has faced severe criticism for its content moderation practices.

Harmful Livestreams: The now-suspended livestream feature was reportedly used to promote tokens through explicit, violent, and disturbing content, including threats and animal mistreatment.
Disturbing Incidents: Incidents like a 10-year-old live-streaming a $30,000 rug pull and laughing about it have drawn widespread condemnation, highlighting the ethical vacuum.

Lack of Transparency & User Protection

Users have voiced numerous concerns.

Platform Stability & Support: Reports include issues with platform stability, lack of clarity on how funds from failed launches are managed, and insufficient action against reported scam activities (see also Trustpilot reviews for pump.fun).

Legal & Regulatory Scrutiny

The activities enabled by the platform have attracted negative attention.

Potential for Exploitation: The platform’s design and the activities it facilitates have drawn criticism and potential legal threats for allegedly enabling exploitation and causing user harm. The proliferation of scams and illicit content raises regulatory red flags.

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Pump.fun by the Numbers (Data from Dune Analytics by oladee & other sources):

Token Launch Volume: High, e.g., 501,599 tokens launched in “This Month” (as per oladee’s dashboard).
Graduation Rate: Consistently low, around 1.0% of launched tokens graduate to a DEX like Raydium.
Post-Graduation Market Cap (All-Time Graduated Tokens): Approximately 99.23% have a market cap below $100,000. Only about 0.22% (296 out of 136,234) achieve a market cap above $1 million.
User Profitability (This Month): Roughly 49.96% of wallets trading Pump.fun tokens ended with a net loss. Only a small fraction (e.g., ~3.15%) realized any profit, with most of those profits being modest. (The data consistently points to systemic issues: a massive volume of token creation, extremely low rates of meaningful success, and unfavorable profit outcomes for the vast majority of users.)

Price Impact Comparison

One of the most significant advantages of Deepr’s Smart Liquidity Scaling is its ability to mitigate the severe price drops seen on other platforms when tokens are sold. The following table illustrates the estimated difference in price impact when 3% of the total supply is sold at various market caps:

(Based on $2500 ETH and $144 SOL estimates used in original onepager)

Market Cap (FDV)	`Pump.fun` Price Drop	`Deepr.fun` Price Drop	Advantage
$100k	30.0%	27.5%	1.1x less impact
$500k	51.6%	39.5%	1.3x less impact
$2M	71.5%	49.8%	1.4x less impact
$5M	82.3%	60.4%	1.4x less impact

As the market cap grows, Deepr’s automatically scaling liquidity provides significantly better price stability compared to models with fixed, shallow initial liquidity.

The Deepr Advantage: Summary

Deepr directly addresses the documented failures and statistical outcomes observed on platforms like Pump.fun:

No Initial Supply Bundling & Fairer Distribution: Progressive Supply Release with tranche-specific purchase limits makes instant whale/bot acquisition of large portions of the supply at launch impossible, fostering wider ownership compared to easily manipulated bonding curves.
Targeted Bot & Snipe Resistance: The Priority Fee Cap and Purchase Limits are specifically designed to counter the types of MEV and sniping documented as prevalent on Pump.fun.
Reduced Volatility & Deeper, Scaling Liquidity: Smart Liquidity Scaling avoids the shallow, static DEX liquidity problem by adding liquidity automatically and progressively as tranches are purchased. This is designed to provide better price stability and lower the extreme price impact seen on Pump.fun post-graduation.
Incentivized Long-Term Holding & Project Viability: By tying liquidity additions to successful tranche sales that unlock at higher market prices, Deepr encourages genuine demand and project development, rather than relying on short-term hype cycles that lead to the high failure rates seen elsewhere.
Sustainable Ecosystem Value: Fees benefit the project deployer and the broader Deepr ecosystem (native $DEEPR Token holders via the Deepr Vault and Airdrop mechanisms), creating aligned incentives for platform health and user rewards, contrasting with models where value extraction is more opaque or concentrated among a few.

By learning from the vulnerabilities of previous models and incorporating robust, multi-layered solutions, Deepr offers a significantly fairer, more stable, and sustainable environment for token launches, improving the odds for both legitimate projects and their communities.