Too Many Tokens, Too Little Trust: How Meme Coin Launchpads Are Testing Investors

The meme coin ecosystem is expanding rapidly, with new launch platforms like Raydium’s LaunchLab and Bonk’s LetsBonk rivaling Pump.fun’s established position. As the number of launchpads rises, so does the volume of meme coins entering the market.

With an industry already saturated with many different projects, drawing the line is becoming increasingly difficult. The surge in meme coin projects also elevates the probability of scams. Representatives from CoinGecko, Space ID, and Neiro told BeInCrypto that this increased flurry of meme coins carries risks like pump-and-dump schemes and rug pulls, which are closely associated with the market’s speculative nature.

The Rise of New Meme Coin Launchpads

If one meme coin launchpad didn’t seem enough, now there’s a handful to choose from. Pump.fun was the first in the meme coin industry to revolutionize token launches by democratizing access.

But now, it faces competition. Raydium released LaunchLab, Bonk’s LetsBonk has already given Pump.fun a reason to sweat over, while Believe and CMC Launch are also making waves. Since then, the meme coin native has lost its stronghold in the industry. 

More alarming than Pump.fun’s dwindling performance is the never-ending wave of meme coin launches. This trend has significant implications for an already unregulated industry, costing most retail investors extensive losses.

Does Accessibility Equate to Sustainability?

When Pump.fun was first launched, it introduced a new concept never seen before in the crypto industry. The idea was simple: if you want to launch your own meme coin, you can do so practically for free and in seconds. 

“The‬‭ accessibility‬‭ of‬‭ meme‬‭ coin‬‭ launchpads‬‭ drives‬‭ both‬‭ innovation‬‭ and‬‭ speculation,‬‭ with‬‭ each‬‭ reinforcing‬‭ the‬‭ other.‬‭ Speculation‬‭ fuels‬‭ market‬‭ activity,‬‭ drawing‬‭ capital‬‭ and‬‭ participants‬‭ who‬‭ create‬‭ a‬‭ competitive‬‭ environment.‬‭ This‬‭ pressure‬‭ compels‬‭ creators‬‭ to‬‭ innovate,‬‭ developing‬‭ compelling‬‭ narratives,‬‭ community-driven‬‭ models,‬‭ or unique token structures that resonate culturally or socially,” S, Neiro’s pseudonymous Community Lead, told BeInCrypto. 

But when a sea of meme coins turns into a tsunami, finding projects with actual utility becomes an increasingly larger feat. 

“While‬‭ it‬‭ is‬‭ generally‬‭ accepted‬‭ that‬‭ meme‬‭ coins‬‭ don’t‬‭ need‬‭ any‬‭ sort‬‭ of‬‭ utility‬‭ as‬‭ they‬‭ are‬‭ seen‬‭ as‬‭ projects‬‭ that‬‭ people‬‭ can‬‭ identify‬‭ with‬‭ or‬‭ “vibe”‬‭ with,‬‭ the‬‭ sheer‬‭ number‬‭ of‬‭ them‬‭ being‬‭ launched‬‭ does‬‭ draw‬‭ liquidity‬‭ away‬‭ from‬‭ projects‬‭ with‬‭ products or use cases,” Shaun Lee, Research Analyst at CoinGecko, said. 

This has already begun to affect meme coins that have leveraged their strong community backing to survive past market downturns.

“Unfortunately,‬‭ the‬‭ flood‬‭ of‬‭ thousands‬‭ of‬‭ new‬‭ meme‬‭ coins‬‭ into‬‭ the‬‭ market‬‭ has‬‭ affected‬‭ established‬‭ meme‬‭ coins‬‭ such‬‭ as‬‭ DOGE‬‭ and‬‭ SHIB.‬‭ These‬‭ coins‬‭ have‬‭ faced‬‭ brand‬‭ dilution‬‭ and,‬‭ with‬‭ liquidity‬‭ spread‬‭ thin,‬‭ have‬‭ been‬‭ unable‬‭ to‬‭ break‬‭ their‬‭ all-time‬‭ highs‬‭ from‬‭ the‬‭ 2021‬‭ bull‬‭ cycle,” Lee added.

To make matters worse, this added layer of speculation in an already volatile industry significantly increases the risk of scams.

The Alarming Scale of Fraud and Project Failures

A recent Solidus Labs report revealed a significant scale of fraudulent activities on Solana. According to the findings, approximately 98.7% of tokens on Pump.fun and 93% of liquidity pools on Raydium have exhibited characteristics of pump-and-dump schemes or rug pulls.

Approximately 98.7% of tokens on Pump.fun are pump-and-dump schemes. Source: Solidus Labs

Knowing this, many token launches are done exclusively to take advantage of the market’s casino-like nature.

“‬It’s‬‭ certainly‬‭ very‬‭ concerning.‬‭ Meme coin‬‭ launchpads‬‭ capitalize‬‭ on‬‭ human‬‭ greed‬‭ and‬‭ FOMO,‬‭ which‬‭ makes‬‭ them‬‭ the‬‭ perfect‬‭ place‬‭ to‬‭ launch‬‭ pump-and-dump‬‭ schemes,‬‭ even‬‭ if‬‭ that’s‬‭ not‬‭ their‬‭ original‬‭ intention,” Alice Shikova, Marketing Lead at Space ID, told BeInCrypto.

Since thousands of coins are launched daily, many of which become scams, most of these projects typically end up defunct. The data on this phenomenon are staggering. 

A recent CoinGecko report indicates that of approximately 7 million cryptocurrencies listed on GeckoTerminal since 2021, 3.7 million –or 53%– have become inactive. 

The majority of these collapses occurred in 2024 and 2025. Notably, over 1.82 million tokens stopped trading in 2025 alone, significantly exceeding the approximately 1.38 million failures recorded throughout 2024.

“‬The‬‭ meme‬‭ coin‬‭ sector‬‭ has‬‭ historically‬‭ prioritized‬‭ quantity‬‭ over‬‭ quality,‬‭ reflecting‬‭ modern‬‭ market‬‭ dynamics‬‭ where‬‭ attention‬‭ is‬‭ transient.‬‭ Many‬‭ coins‬‭ capitalize‬‭ on‬‭ short-lived‬‭ trends,‬‭ sacrificing‬‭ depth‬‭ for‬‭ immediacy.‬‭ Launchpads‬‭ amplify‬‭ this‬‭ tendency‬‭ by‬‭ streamlining‬‭ token‬‭ creation,‬‭ resulting‬‭ in‬‭ many‬‭ projects,‬‭ most‬‭ of‬‭ which‬‭ lack staying power,” S explained.

With no federal regulation in sight, only two options remain. The launchpads either take action, or traders decide to get smart about their investment decisions.

The Regulatory Void: Who is Responsible?

Currently, no comprehensive, specific regulatory framework exists for the meme coin industry, which creates an environment where pump-and-dump schemes and rug pulls remain prevalent. 

In February, the US Securities and Exchange Commission (SEC) issued a statement indicating that typical meme coin transactions are not considered securities. This classification means that investors in these specific assets are generally not afforded the protections of federal securities laws.

According to Shikova, launchpads must take on the responsibility in light of these nonexistent regulations.

“‭Right‬‭ now,‬‭ it’s‬‭ not‬‭ even‬‭ clear‬‭ which‬‭ agency‬‭ is‬‭ responsible‬‭ for‬‭ memecoins,‬‭ let‬‭ alone‬‭ what‬‭ the‬‭ rules‬‭ should‬‭ be.‬‭ And‬‭ realistically,‬‭ it‬‭ will‬‭ take‬‭ a‬‭ long‬‭ time‬‭ for‬‭ government‬‭ agencies‬‭ to‬‭ catch‬‭ up‬‭ and‬‭ understand‬‭ this‬‭ space‬‭ properly.‬‭ So‬‭ launchpads‬‭ need‬‭ to‬‭ self-regulate‬‭ if‬‭ they‬‭ want‬‭ memecoins‬‭ to‬‭ become‬‭ a‬‭ legitimate investment sector. Otherwise, regulators will come in and outright ban them,” she warned.

Fortunately, existing methods can help mitigate the growing risk of scams.

The Path Forward: Audits, Lock-ups, and Due Diligence

In a sector that prioritizes quantity over quality, launchpads have the opportunity to implement safeguards that prevent projects from immediate collapse.

“The‬‭ only‬‭ way‬‭ to‬‭ solve‬‭ this‬‭ is‬‭ through‬‭ transparent‬‭ audits‬‭ and‬‭ also‬‭ enforcing‬‭ lock-ups‬‭ for‬‭ anyone‬‭ launching‬‭ a‬‭ new‬‭ token,‬‭ so‬‭ they‬‭ can’t‬‭ just‬‭ close‬‭ the‬‭ project‬‭ and‬‭ take‬‭ off‬‭ with‬‭ the‬‭ money‬‭ as‬‭ soon‬‭ as‬‭ it‬‭ pumps.‬‭ And‬‭ it’s‬‭ the‬‭ launchpads‬‭ that‬‭ are‬‭ responsible‬‭ for‬‭ putting‬‭ these‬‭ rules‬‭ in‬‭ place‬‭–‬‭ otherwise,‬‭ the‬‭ regulators‬‭ will‬‭ do‬‭ it,‬‭ and‬‭ then‬‭ the‬‭ rules‬‭ will‬‭ certainly be much stricter,” Shikova told BeInCrypto. 

However, this isn’t a one-size-fits-all solution. Even with established regulations and protections, traders still bear the ultimate responsibility for vetting projects before investing.

“They‬‭ can‬‭ check‬‭ out‬‭ the‬‭ team’s‬‭ background‬‭ (beyond‬‭ whatever‬‭ they‬‭ say‬‭ on‬‭ LinkedIn),‬‭ the‬‭ project’s‬‭ tokenomics‬‭ and‬‭ roadmap‬‭ (if‬‭ it‬‭ even‬‭ has‬‭ these),‬‭ and‬‭ also,‬‭ importantly,‬‭ its‬‭ community.‬‭ You‬‭ can‬‭ typically‬‭ tell‬‭ if‬‭ the‬‭ community‬‭ is‬‭ just‬‭ there‬‭ for‬‭ the‬‭ short-term‬‭ hype‬‭ or‬‭ genuinely‬‭ believes‬‭ in‬‭ the‬‭ project‬‭, and‬‭ this‬‭ often‬‭ determines‬‭ its‬‭ longevity,‬‭ especially‬‭ when‬‭ it‬‭ comes‬‭ to‬‭ speculative‬‭ assets‬‭ like‬‭ memecoins,” Shikova added. 

While democratizing access and fueling innovation, the proliferation of meme coin launchpads has undeniably intensified the challenges within this highly speculative market. 

As these platforms continue to take off, the onus remains on both the launchpads to implement stricter safeguards and on individual investors to exercise rigorous due diligence to navigate the escalating risks.