The Meme Coin Ecosystem is expanding rapidly, with new launch platforms expanding, including the established location of Raydium’s LaunchLab and Bonk’s Letsbonk Rivaling Pump.fun. As the number of LaunchPads increases, the amount of Meme Coins will also be on the market.
The industry is already saturated with many different projects, and drawing out the line is becoming increasingly difficult. The surge in Meme Coin projects also increases the likelihood of fraud. Representatives from Coingecko, Space ID and Neiro told Beincrypto that the increase in gusts of this meme coin poses risks such as pump-and-dump schemes and lag pulls that are closely related to the speculative nature of the market.
The rise of the new meme coin launchpad
If one Meme Coin Launchpad doesn’t seem to be enough, now there are only a handful to choose from. Pump.Fun was the first in the Meme Coin industry to revolutionize token launches with democratized access.
But now it faces competition. Raydium has released LaunchLab and Bonk’s Letsbonk has already given Pump. There’s no reason to sweat. Since then, Meme Coin natives have lost their industry base.
What’s more surprising than Pump.Fun’s declining performance is the never-ending wave of Meme Coin’s launch. This trend has a great impact on an already unregulated industry, spending significant losses on most retail investors.
Does accessibility amount to sustainability?
When Pump.Fun first launched, it introduced a new concept that has never been seen before in the Crypto industry. The idea was simple. If you want to launch your own meme coin, you can actually do it for free in seconds.
“The accessibility of Meme Coin Launchpads promotes both innovation and speculation by each strengthening the other. Speculation burns market activity and attracts capital and participants who create a competitive environment.
But once the ocean of meme coins turns into a tsunami, finding a project with actual utilities becomes an increasingly great feat.
“It is generally accepted that meme coins do not require any kind of utility because people are considered to be an identification or “atmosphere,” but the vast numbers on sale draw liquidity from products and use case projects,” says a research analyst at Coingecko.
This has already begun to affect meme coins that leveraged the support of their strong community to survive past market slump.
“Unfortunately, the flood of thousands of new meme coins into the market has affected established meme coins such as Doge and Shib. These coins faced brand dilutions, which have become less liquid and have not been able to break the all-time highs from the bull cycle in 2021,” added Lee.
Worse, this added layer of speculation in this additional unstable industry significantly increases the risk of fraud.
The surprising scale of fraud and project failure
A recent Solidus Labs report revealed a massive fraud activity in Solana. According to the survey results, approximately 98.7% of Pump.Fun tokens and 93% of Raydium’s liquidity pools exhibit pump and dump scheme or lag pull characteristics.
Knowing this, many token launches are made solely to exploit the casino-like nature of the market.
“It’s certainly very concerning. Meme Coin Launchpad utilizes human greed and FOMO.
With thousands of coins released every day, many of them become scams and most of these projects are usually obsolete. The data on this phenomenon is incredible.
A recent Coingecko report shows that of the roughly 7 million cryptocurrencies listed on Geckoterminal since 2021, 3.7 million (53%) are inactive.
Most of these collapses occurred in 2024 and 2025. In particular, more than 1.82 million tokens have halted trading in 2025 alone, significantly exceeding the roughly 1.38 million obstacles recorded throughout 2024.
“The meme coin sector has historically prioritized quantity over quality, and attention reflects the dynamics of the modern market, whereas many coins take advantage of short-lived trends and sacrifice depth for immediacy. The launchpad amplifies this trend by streamlining the creation of tokens, which most of which lack the ability to stay,” explained S.
Only two options remain, as federal regulations are invisible. LaunchPads either take action or decide that traders will be smarter about their investment decisions.
Regulation blank: Who is responsible?
Currently, there is no comprehensive specific regulatory framework in the memecoin industry. This creates an environment where pump-and-dump schemes and lag pulls are prevalent.
In February, the Securities and Exchange Commission (SEC) issued a statement stating that typical meme coin transactions are not considered securities. This classification means that investors of these specific assets are not generally offered federal securities law protections.
According to Shikova, LaunchPads must be responsible for these non-existent regulations.
“It’s not even clear what agencies are responsible for memokine right now. Not to mention what the rules should be, it’s realistic to see that it takes a long time for government agencies to chase and understand this space properly.
Fortunately, existing methods can help mitigate the increased risk of fraud.
Future paths: Audit, Lockup, and Due Diligence
In sectors that prioritize quantity over quality, launchpad offers the opportunity to implement safeguards to prevent the project from collapse immediately.
“The only way to solve this is to implement a lockup for those who launch a new token through a transparent audit. So, once you close the project and pump it, you won’t be able to take away the money right away, or the regulators will do that.
However, this is not a one-size-fits-all solution. Despite established regulations and protections, traders are still the ultimate responsibility to screen projects before they invest.
“They can check their team background (beyond what they say on LinkedIn), their project’s tonomics and roadmap (if they have these), and, importantly, the community. They can know if the community is just for short-term hype or if they truly believe in the project.
While democratizing access and fostering innovation, the surge in Meme Coin Launchpads undeniably strengthened the challenges within this highly speculative market.
As these platforms continue to take off, both launchpads remain responsible for implementing more stringent safeguards, and individual investors exercise strict due diligence to navigate the risks that escalate.
Disclaimer
Following Trust Project guidelines, this feature article presents the opinions and perspectives of industry experts or individuals. Although Beincrypto is dedicated to transparent reporting, the views expressed in this article do not necessarily reflect the views of Beincrypto or its staff. Readers should independently verify the information and consult with experts before making decisions based on this content. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
