The Collapse of Pumpdotfun Activity After the LIBRA Rug Pull Scandal
The Pumpdotfun platform, which was hosting a large wave of new projects and tokens, suffered a severe blow after the rug pull associated with the LIBRA project.
LIBRA is a fraudulent project launched on Pumpdotfun, which attracted investors with promises of quick profits, but ended with a rug pull – meaning the developers suddenly withdrew liquidity, leading to a collapse in the token's value and losses for investors. This incident heightened concerns about the platform's safety and the projects launched on it.
How did this affect Pumpdotfun?
📉 The number of new tokens being launched daily on the platform has decreased by more than 90% since its peak in February.
📉 The number of "graduated" tokens (i.e., projects that meet certain criteria on the platform) has dropped by almost the same percentage.
What does this mean?
🔹 Declining trust: Investors and developers have become more cautious following what happened with LIBRA.
🔹 Decreased liquidity and activity: With the drop in new token numbers, opportunities for quick speculation that attracted users to the platform are diminishing.
🔹 Uncertain future: If the platform does not regain user trust, it may decline further or lose its importance to other platforms.
This event reflects how rug pulls can destroy emerging projects, even if they initially achieve massive growth.