Following the controversy surrounding the LIBRA token, Solana-based launchpad Pump.fun has seen a significant decline in new users, deployed tokens, and transaction fee revenue. This reflects investor caution in the memecoin space following the LIBRA incident.

Pump.fun Loses Massive Users and New Tokens
According to data from Dune Analytics, the number of new users on Pump.fun dropped 16.4% in the week from February 7 to February 13, from 719,524 to 601,516. This is the first time since late November that the average number of new daily users has dropped below 100,000.

The number of new tokens launched on the platform also dropped sharply, down 26.3%, from 344,607 to 253,955 after the LIBRA incident. However, Pump.fun still maintained significant growth, with nearly 8 million tokens deployed within 13 months of operation.

Transaction Fee Revenue Plunges
The decline in the number of tokens has led to a sharp decline in transaction fee revenue. During the week from February 7 to February 13, the platform collected 124,623 SOL, but the following week, this number dropped by nearly 32%, to 85,196 SOL. This is also the first time since late December that Pump.fun's average weekly fee has fallen below 15,000 SOL.

Solana Memecoin Market Unstable
The LIBRA incident has caused chaos in the Solana memecoin market. On February 14, Argentine President Javier Milei unexpectedly expressed his support for LIBRA, claiming that the token could help fund projects in Argentina.

Shortly after, the price of LIBRA skyrocketed, pushing the market capitalization to $4.5 billion before plummeting 95% in just a few days. A report from Nansen showed that two trading wallets made more than $10 million in profits by buying LIBRA shortly after Milei posted on X and selling it at its peak price of $4.55.

This event raised concerns about insider trading in the memecoin sector, and made the community question the reliability of the Solana ecosystem. This could be the main reason for the sharp decline of Pump.fun in recent times.

Memecoin Sector Faces Difficulties
As of now, investor panic and controversy surrounding memecoin have caused the sector to fall 13.4% since February 14. According to data from Artemis, this is the third-largest decline among altcoin groups in the same period.

The LIBRA incident has not only affected Pump.fun but also the entire memecoin ecosystem on Solana, posing many challenges for platforms and investors in the coming time.