Pump.fun Co-founder Says Most Altcoins Serve Same Purpose as Memecoins
Claims most altcoins are just fancy memes
Pump.fun co-founder Alon Cohen has sparked debate by claiming that most technology-based altcoins are no different from memecoins, except for their involvement with venture capitalists and inflated valuations. According to Cohen, many tech altcoins offer the same speculative appeal as memecoins but with lower circulating supply and high fully diluted value, ultimately benefiting institutional investors at the expense of retail traders.
Cohen’s comments came in response to accusations that Pump.fun, a platform for launching memecoins, disrupted the altcoin market cycle. He countered by pointing out that Pump.fun was already operational before the broader altcoin market downturn in April 2024. He attributed the crash to retail investors being overly cautious after getting burned in previous cycles, making them hesitant to reinvest in so-called “future of finance” projects.
Cohen argued that most retail investors aren’t deeply interested in blockchain technology—they just want to make money while enjoying the trading experience. His remarks highlight a growing divide between altcoin enthusiasts who believe in blockchain utility and traders who simply speculate on assets without real-world use cases.
Pump.fun entered the market in early 2024, riding the wave of a thriving memecoin culture fueled by online communities on X (formerly Twitter), Reddit, Telegram, and Discord. Meanwhile, TradingView’s Total3 indicator, which tracks the altcoin market excluding Bitcoin and Ether, peaked at $788 billion in March 2024 before crashing in April. The altcoin market did not recover until November, coinciding with Donald Trump’s re-election, which triggered a broader crypto rally.
Despite oversaturation in the crypto market, institutional-backed altcoins performed better than those without institutional investment. According to Animoca Brands co-founder Yat Siu, institutional players supported prices by purchasing assets in open markets rather than engaging in private sales.
