Bitquery Study Highlights Flaws in Memecoin Copy-Trading
Analysis of Pump.fun wallet data reveals that many high-profit memecoin strategies rely on token transfers rather than market buys.
Updated on Oct. 25, 2026 in Investing
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A new investigation by Bitquery reveals that major memecoin gains on Pump.fun often stem from manipulated patterns rather than conventional market trading. The study challenges the viability of copy-trading strategies that mimic successful wallets, as many touted wins originate from token transfers rather than standard purchases.
Why it matters
Investors often use automated platforms to replicate the trades of profitable wallets, assuming they are mirroring successful market entries. This report suggests that these platforms may misrepresent potential returns by failing to account for wallets that received tokens directly from creators or via wash loops.
Bitquery identified 1,579 profitable positions where tokens were received via transfer, with 1,104 linked directly to token creators. Additionally, 15 of the 25 largest reported gains met the criteria for wash loops, which artificially inflate trade volume.
The players
Bitquery
This is a blockchain data and analytics firm that provides infrastructure for querying and monitoring on-chain activities.
Pump.fun
This is a platform that allows users to launch and trade memecoins, serving as the primary environment for the analyzed activity.
GMGN
This is an automated copy-trading platform that enables users to track and mirror the transaction activity of other wallet addresses.
The details
Many copy-trading systems operate by observing market purchases, but the data indicates that major winners frequently bypass standard acquisition methods. For example, one wallet generated $4.92 million in sales after an initial investment of only $4,223, while other positions show tokens arriving via transfers to create the appearance of a profitable trade without an initial purchase cost.
Timeline
October 2025 through August 2026 served as the study period for Bitquery.
July 2026 marked a period when sales of transferred tokens increased significantly.
August 2026 saw transferred-token sales account for 70% of large wallet wins.
October 22, 2026, was the official release date for the investigation findings.
Market Dynamics
This study aligns with the historical prevalence of wash trading in centralized exchange volume reports, documenting how artificial activity consistently misleads retail participants. By highlighting these patterns, the report suggests that decentralized markets are increasingly subject to the same sophisticated volume manipulation found in traditional crypto venues.
Retail investors who rely on copy-trading tools should treat reported success metrics with extreme skepticism, as they may not reflect replicable market strategies. Users should be aware that portfolios displaying high gains without corresponding purchase costs likely involve transfers rather than profitable trading cycles.
The takeaway
The data suggests that the most successful-looking memecoin strategies on platforms like Pump.fun are often fundamentally inaccessible to average traders. Readers should prioritize transparency in trade history before mimicking any wallet that shows unusually high returns.
Further reading
For more on market behavior, explore our Investing section.
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