Original author: Daniel Li, CoinVoice
Internet culture and memes have always played an important role in the crypto market. However, due to the high-risk nature of meme coins, most investors rarely make a profit from them and are prone to huge losses. This situation has led to the value investment in the meme market becoming unreliable and excessive speculation.
However, the traffic attribute of Meme has long been an indispensable part of the development of public chains. Therefore, how to maintain the fairness of the Meme market has become an important issue in this round of bull market. As the largest Meme launch platform in the Solana ecosystem, Pump.fun has attracted widespread attention from the market recently. Pump.fun continues the narrative of fairness. It supports users to deploy and issue tokens at a very low cost (0.02 SOL) without any development experience. Since its launch in January, Pump.fun has issued more than 460,000 tokens in total. The rise of Pump.fun has also led the Meme coin track into a new stage of universal coin issuance.
What is Pump.fun
Pump.fun is a coin issuance tool and community platform focused on Meme coins. It was launched on Solana in January 2024 and added support for Ethereum L2 Blast shortly after the mainnet launch. Pump.fun provides users with a simple and low-cost way to deploy and issue tokens by simplifying the coin issuance process and lowering the technical threshold. Users only need to pay a fee of 0.02 SOL and can easily use the platform without development experience.
This simplified and low-cost feature has made Pump.fun quickly popular and achieved remarkable success in a short period of time. In the past 10 days, Pump.funs trading volume has shown a parabolic growth trend, creating a nearly 50% increase in total revenue. Currently, the platforms daily revenue remains above $450,000 and there is no trend of decline.
Pump.Fun coin issuance process
Users can currently choose to use Blast or Solana. From there, the startup process is very simple. Just click Start a New Coin and enter the name, code, description and brand image, and pay 0.02 SOL to start the fundraising issuance process of a token. The whole process is very simple. Users do not need to adjust settings such as the issuance quantity and token ownership. The professional knowledge requirements are very low and ordinary people can also operate it.
Once the new coin is created, it will be launched along the bonding curve on the Pump.Fun platform. The bonding curve is a mathematical curve that determines the price of a token based on the supply. As more tokens are purchased, the price of the token will generally increase. Anyone can buy and sell on the platform, and when the total market value of the token reaches $69,000, the liquidity of the bonding curve will be deposited into Raydium and destroyed.
When the liquidity of the token is deposited and destroyed, users can purchase it through the Solana decentralized exchange Raydium or through their preferred Telegram bot and web application terminal, thereby obtaining more liquidity. Once this point is reached, the new coin issued by Pump.Fun looks like any other token, and at this point, the new coin issuance is successful.
Pump.Fun coin issuance features
(1) Extremely low coin issuance cost: Anyone can deploy their own Meme tokens on Pump.Fun at a cost of less than $2.
(2) No need to seed liquidity: Pump.Fun does not need to seed a large amount of liquidity for newly issued tokens. The system will automatically establish an initial liquidity pool (about US$60,000) for it on DEX.
(3) Automated process: Once the market value of the new token reaches $60,000, the system will automatically inject all purchased funds into the liquidity pool and list it for trading on Rayium Swap.
(4) Giving up the right to mint coins: The creator gives up the right to mint coins when deploying tokens, and all tokens are issued when they are created.
(5) Fair distribution: Since creators cannot reserve tokens, all tokens enter the open market when they are created, and there are no hidden wallets.
(6) High risk and high return: The price of Meme tokens on Pump.Fun fluctuates violently, and there is a serious PUMPDUMP phenomenon. The risk is high but it is also possible to get high returns.
Why Pump.fun is so popular online
As interest in online culture and Meme coins has increased dramatically, many investors are very keen to launch their own tokens, but often lack the technical knowledge required to create good tokens. Therefore, for a long time, the issuance of Meme tokens has been monopolized by institutions with professional technical knowledge and strong capital, making it difficult for ordinary users to participate.
In addition, the frequent problems of rat trading, RUG, and scientists preemption in the Meme market have also made the entire market unfriendly to ordinary investors. The Meme pre-sale fever model brought by BOME some time ago became a new means of harvesting retail investors just one week later. Now most pre-sale projects on the market have almost experienced the rug phenomenon. For example, after the Avalanche fundraising project Sener raised about 93,000 AVAX (about 4.8 million US dollars), the founder transferred a large amount of AVAX away, and the project token SENDER only opened slightly higher and then directly entered the stage of full selling.
The lack of transparency and fairness makes the Meme market full of risks. However, the hundredfold wealth code makes investors and the community enthusiastic about Meme coins. In order to maintain the prosperity of the market, people urgently need a Meme coin issuance platform similar to Birdeye, but more focused on fairness. And pump.fun just meets the needs of Meme enthusiasts.
In terms of fairness, pump.fun meets the entry needs of ordinary investors through extremely low coin issuance costs. At the same time, it simplifies the entire coin issuance process by productizing Meme, making the entire coin issuance process more open and transparent.
The creator automatically gave up the right to mint coins when deploying the tokens, which also means that Pump.funs tokens will have no nominal project party and manager, so there will be no RUG problems caused by super permissions.
Secondly, Pump.Fun also improves the fairness of the platform by eliminating the creators intervention in the token issuance process. The liquidity on the platform is artificially created and runs on a joint curve retained by the platform. Once the Pump.Fun token is listed on Raydium, the liquidity will be automatically burned, thereby locking the AMM liquidity. This means that even as a project creator, there is no way to stop this process from happening.
In addition, compared with traditional coin issuance platforms, Pump.fun is not only fairer in its coin issuance model, but also combines coin issuance with social attributes, which is a major innovation. When creating a token on Pump.fun, in addition to the name of the token itself, you also need to attach a picture and introduction, and have a comment function. This gives it the ability to quickly and intuitively spread the story and style behind it. In addition, Pump.fun also has a message board-like function where users can leave messages and communicate with each other.
Pump.Fun has become popular in the entire crypto industry for its fairness, transparency and social attributes. Less than three months after its launch, Pump.Fun has become the most popular Memecoin platform in the Solana ecosystem. According to DeFiLlama data, the total transaction fees of Pump.Fun have exceeded 3 million US dollars in the past seven days. What is particularly noteworthy is that Pump.Fun set a record high on May 7, with daily transaction fees exceeding 752,000 US dollars, becoming the highest-earning application in the Solana ecosystem.
Pump.Fun: Fairness and Risk Coexist
Pump.Fun was originally conceived to maintain fairness in the Meme market. As a new project, Pump.Fun is indeed more fair and transparent than traditional platforms, but in the crypto industry, the higher the profit, the greater the risk. Some of Pump.Funs rules have also been used by some people and become a tool to harvest others.
Pump.Fun lowered the threshold for issuing coins, allowing ordinary investors to participate in the coin issuance market, resulting in more than 10,000 coins issued every day, but most of them are junk coins. For investors, it is not easy to find potential value coins among many junk coins, because the information available for reference is very limited, and they can only rely on the social information of the project, such as message boards or token information, to judge its pros and cons.
Unfortunately, these social messages can be easily faked. When ordinary investors see tokens created or followed by some celebrities, they tend to believe and buy them. However, they may not realize that these celebrities may be faked by others with accounts with a large number of followers, creating the illusion of high attention. These people bought a large number of bottom chips in the early stage of the token, and then waited for users to be deceived by the illusion of high attention and quickly sold them out. Similarly, some celebrities may also use their influence to create new tokens, and then quickly realize the purpose of monetizing (harvesting) their influence through extreme price curves.
For example, TEST is the first meme token deployed on Pump.Fun, created by the development team. Early buyers used tools to purchase nearly 50% of the supply, causing the price to rise sharply. But then holders sold their tokens, and the price of TEST fell sharply, causing many retail investors who entered the market later to be harvested. There is also BERT, which increased tenfold within 15 minutes of opening, but then there was a serious PUMPDUMP phenomenon, causing the price to plummet.
The fairness of Pump.Fun is that every user has the opportunity to bet at the table, but the gambling nature is too strong. If the user bets correctly, he may be able to make hundreds of times the money in less than a day, but if he bets incorrectly, he will become the object of harvesting. Compared with the Meme coin issuance platform, Pump.Fun gives people the feeling of being more like a gambling platform. Even American professional poker player Tom Dwan mentioned Pump.fun in a tweet, implying that he is interested in Pump.funs gambling entertainment.
Pump.fun triggers a nationwide coin issuance craze
The popularity of Pump.Fun has also led to a wave of coin issuance by all. In the past two weeks, the Solana network has issued an average of 14,000 new tokens per day, most of which come from Pump.Fun. Pump.Fun has created 10,000 Meme coins every day for six consecutive days, which shows its huge potential in the Meme market. In addition, the Base chain has also launched more than 2,000 trading pairs for many consecutive days. The popularity of one-click coin issuance tools represented by Pump.Fun also indicates that the Meme coin track is about to enter a new stage of coin issuance by all. In addition to Pump.Fun, there are several other popular Meme coin issuance platforms.
We.rich
We.Rich is a UGA (User Generated Asset) platform that allows anyone to launch a Meme token without LP (liquidity pool) with one click. Based on Pump.Fun, We.Rich adds more features and optimizes the user interface. For example, keeping the token price extremely low and the limited Mint function during the initial fair issuance phase. However, We.Rich is insufficient in asset information and lacks social attributes. Although there is still a large gap between its issuance volume and active users compared to Pump.Fun, for the Base chain, which also has a huge Meme market, the emergence of this project has added a new competitor to Pump.Fun in the Meme coin battlefield.
Rug.fun
Rug.fun is another Meme coin issuance platform on the Base chain, which is somewhat similar to Pump.fun in that anyone can issue coins on the platform. However, in terms of rules, Rug.fun is more aggressive and more gambling than Pump.fun.
Rug.funs token issuance rules are divided into two stages. The first stage is to create tokens, and anyone can create tokens in a cycle lasting 12 hours. After the deadline, only the top 10 tokens with high liquidity will enter the second stage, and the eliminated tokens will return the purchase funds. The second stage is a competition between the top 10 tokens, which lasts for 12 hours, and only the 1st and 10th tokens will win. The holders of these two tokens will divide the liquidity funds of all tokens ranked 2nd to 9th, and each will receive a 50% share. In addition, each purchase of a token will incur taxes, and taxes will gradually increase over time, and the winner will have the opportunity to share taxes. The winning token will be eligible to be listed on a decentralized exchange (DEX).
Friend.tech
Friend.tech is a decentralized social platform that released Friend.tech V2 in March 2024, introducing the Club feature. On Friend.Tech and Club, anyone can create a token that is non-abuseable and 100% secure with the click of a button.
Once a token is created, it will have a bonding curve property. This means there is a correlation between the supply and price of a token. When the supply increases, the price will rise, incentivizing people to hold and participate. Since this is a decentralized social platform, the tokens created will make the creator and holder responsible for social links and tied to reputation on the Internet and blockchain. This will give creators more responsibility and motivation to ensure the success of the project.
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