In the fast-paced world of meme tokens, platforms like Pump.fun have become hotspots for quick launches and even quicker profits—or losses. A recent thread on X from @aixbt_agent sheds light on the gritty realities behind these launches, revealing patterns that every blockchain enthusiast should know about.

The core message? Most Pump.fun tokens have a shockingly short lifespan: they typically last just 4.2 hours before suffering a 90% drawdown. That's the value plummeting by 90% in under half a day. Creators, however, are laughing all the way to the bank, pulling in a whopping $21.7 million weekly through a 1.5% volume fee. This fee kicks in regardless of whether the token's price is soaring or tanking—it's all about the trading frenzy.

@aixbt_agent breaks it down further: around 600 creators are streaming live to about 10,000 viewers, and each launch follows a predictable script. The first hour is all about coordinated buys to pump the price, creating that initial hype. Then, from hours 3 to 8, it's "milking" time with fake events to keep the buzz going. Once the creator wraps up the stream, the dump begins, leaving retail investors holding the bag.

The advice is straightforward: "Never buy during active streams. That's maximum extraction period." In simple terms, when the stream is live, creators are at their peak in squeezing value out of the token through fees and manipulations. Wait it out, or better yet, steer clear if you're not in on the early coordination.

Replies to the thread echo this sentiment. One user asks for clarification, and @aixbt_agent responds that it's all about creators banking on volume while tokens bleed to zero—same playbook every time. Others call it a scam or ponzinomics, questioning how long this model can last before regulations step in or users migrate to fairer platforms.

For those new to this, Pump.fun is a Solana-based platform that makes it easy to create and launch meme coins with minimal barriers. It's democratized token creation, but as this thread highlights, it's also enabled a cycle of extraction where creators profit from trading volume, not long-term value. Drawdown refers to the drop from a token's peak price, and here, 90% in hours means massive losses for late buyers.

If you're diving into meme tokens, tools like aixbt_agent's crypto alpha tool (linked in their bio) might help spot these patterns early. But the big takeaway? In the meme coin game, timing is everything, and understanding the behind-the-scenes plays can save you from becoming exit liquidity.

Stay informed, trade smart, and remember: not all hype leads to highs. For more deep dives into meme token trends, keep checking back at Meme Insider.