Pump.fun and the normalisation of Market Manipulation
Introduction
Platforms such as Pump.fun are attracting growing attention from regulators and politicians. They are often presented as a new danger in crypto. In reality, they mainly expose a much older problem: an online culture where speculation, hype, and influence increasingly blur the line between investing and manipulation.
I saw that culture from the inside. I joined Telegram groups to find coins early, because that seemed to be where the real money was made. Returns of 20x or even 200x felt possible if you entered early enough. Groups reinforced this constantly through screenshots of huge gains and the suggestion that the next opportunity was always close.
That created a permanent sense of urgency. Not participating did not feel cautious. It felt like missing out.
How the System Works
Inside these groups, pump and dump schemes were often organised in a simple pattern: a public group generated excitement, while a smaller inner circle got access to the coin first. By the time the larger group started buying, early participants were already preparing to sell.
What stood out most was how normal this seemed. Many knew some people had an advantage, but few questioned it. It was simply accepted as part of the system.
Over time, it stopped feeling like investing and started feeling like a game: fast, addictive, and constant. Gains and losses happened so quickly that the money barely felt real. When you win, your expectations rise. When you lose, you compare yourself not to where you started, but to your highest point. That creates the urge to win it back.
That is where rational decision making begins to disappear.
Why Pump.fun Matters
Pump.fun fits naturally into this environment. It did not invent pump and dump schemes, but it makes them easier, faster, and more visible.
Creating a coin has become easy. They can be launched in minutes, traded instantly, tracked in real time, and promoted across social media. Speculation is no longer limited to niche communities. It has become part of the system itself.
The consequences go beyond financial loss. Many users believe they are investing when they are actually entering a system designed to reward early insiders. This can lead to financial harm, addictive behaviour, unrealistic expectations about money, distrust in markets, and greater risks for younger users.
Regulation and Solutions
Regulators are responding. The Authority for the Financial Markets classifies pump and dump schemes as market abuse and states that such practices are prohibited under European rules.[1]
The Dutch government has also raised concerns about Pump.fun, particularly regarding young investors and the role of online influencers [2].
In the United Kingdom, the Financial Conduct Authority warned that Pump.fun is not authorised and that consumers should be cautious [3].
Simply banning or restricting a platform is rarely sufficient to address the underlying issue. When demand remains high, users often move elsewhere through private groups, new tools, or technical workarounds such as VPNs. Reports about Polymarket showed that some restricted users continued accessing the platform through VPNs, demonstrating how digital restrictions are often bypassed rather than respected [4].
Removing one platform does not remove the behaviour behind it.
A more realistic response would combine enforcement, education, and prevention: detecting suspicious trading patterns, intervening faster, warning users inside apps, tightening influencer rules, and improving financial education for younger audiences.
Conclusion
The uncomfortable reality is that platforms like Pump.fun do more than enable speculation. They depend on it. As long as that remains profitable, they are unlikely to disappear. The real question is whether we are willing to accept a system in which speculation, hype, and unequal access are normalised, and in which the line between market participation and exploitation becomes increasingly difficult to see.
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[1] AFM. (n.d.). Pump and dump. Dutch Authority for the Financial Markets.
[2] CoinDesk. (2024). Polymarket’s probe highlights challenges of blocking U.S. users and their VPNs.
[3] FCA. (2024). Warning: Pump.fun. Financial Conduct Authority.
[4] Rijksoverheid. (2025). Answers to parliamentary questions about Pump.fun. Dutch Government.
