Pump Fun's Callout Rewards System Criticized for Prioritizing Quantity Over Quality

Crypto analyst Dethective has uncovered the details of Pump Fun's callout reward system, which rewarded users for sharing tokens that often had tiny market caps. The top 50 earners received a total of almost $700,000 in rewards.

The research found that 80% of the earners shared tokens with an average market cap of less than $100,000. Only two callers had an average median market cap rate of over $1 million, and eight callers had an average median market cap rate between $100,000 and $1 million.

The system was criticized for rewarding quantity over quality, as users made significant earnings from sharing numerous callouts rather than focusing on more valuable tokens. Pump Fun's Chief Operating Officer Alon Cohen acknowledged this issue and stated that the firm has 'significantly reduced the weighting of the number of callouts that a user produces within the callout rewards calculation.'

The controversy surrounding Pump Fun's reward system comes as the platform faces other challenges, including staff firings and overdue company filings. The platform's token has seen a 133% increase in value over the last month but remains down 46% from its all-time high.