Pump Fun

What is Pump Fun ❓

Pump Fun is a platform that empowers users to create and trade memecoins effortlessly. These are tokens that generally have no intrinsic value beyond their novelty and community appeal. The platform utilizes a bonding curve pricing model, which adjusts token prices based on supply and demand, ensuring a fair and dynamic trading environment.

Launched in January 2024, Pump.Fun quickly gained traction in the crypto community (more than 130K Twitter/X followers). Initially supporting the Solana network, it expanded to include Ethereum’s Layer 2 networks Base and Blast by April 2024, broadening its user base and functionality. The platform was bootstrapped by early-stage venture firm Alliance DAO and has since generated significant revenue ($222.95M), becoming one of the most profitable apps in the crypto space. Pump Fun crypto launchpad's success is attributed to its user-friendly interface, low fees, and mechanisms designed to prevent scams like rug pulls, making it a trusted platform for memecoin enthusiasts.

The ability to launch tokens quickly and at low cost has democratized token creation, allowing more individuals to participate in the crypto space. This has led to increased trading volume and revenue for the platform, with Pump . Fun generating between $200,000 to $500,000 in fees daily.

🗝️ Key Features of Pump Fun:

• Easy Memecoin Creation;
• Bonding Curve Model;
• Supported Blockchains;
• Low Fees;
• Safeguards Against Market Manipulation.

📈 The bonding curve model used by Pump.Fun is a key feature that sets it apart from traditional token pricing models. Here’s how it works:

• Initial Token Supply: When you create a token, an initial supply of 800 million tokens is placed into the bonding curve.
• Price Adjustment: As more users buy the token, the price increases exponentially along the curve. Early buyers benefit from lower prices.
• Liquidity Provision: Once the token reaches a market cap of $69,000, liquidity is added to Raydium, ensuring the token can be traded on this decentralized exchange. Memecoins with increasing popularity then get listed on other DEXs and even make their way to successful CEX listings eventually. 

📊 Some statistics about Pump Fun:

• The vast majority of memecoins (98.6%) launched through Pump Fun do not “reach” Raydium - out of 1.58 million tokens launched through the platform, only 1.4% or 22,330 coins managed to cross this threshold.
• None of the memecoins have reached an FDV of $20 million.
• Of the 1.7 million tokens launched, only 23,810 have passed the bond curve.
• Of these 23,810 memecoins, only 141 were added to CoinGecko (0.008% of the total).
• 41 memecoins managed to maintain the $1 million capitalization level for several weeks, $10 million - 15. This is 0.002% and 0.001% respectively.
• The daily revenue of Pump Fun Solana has hit an all-time high. The figure amounted to $5.33 million, according to DeFiLllama. 
• Over 1.77 million meme tokens have been launched on the platform since its inception.

💡 Interesting fact:

The casino has better odds of winning than memecoins.

According to Cointelegraph, a $100 bet on a single number in American roulette has a 2.6% chance of success (1 in 38) and the winnings will be $3600. 

Choosing a successful memecoin for a similar amount on the Pump.Fun platform, on the other hand, has a much lower chance of 0.12% (1 in 833). In addition, the user will earn only $1380. Analyst Adam gave this statistic from August 11.

✅ Pump Fun’s pros:

• Easy memecoin creation;
• You can buy below 60K marketcap. If a token is running then you get a super early entry;
• You can usually take profit even during Pump Fun trading and ride a moonbag to Raydium.

📛 Pump Fun’s cons:

• The chance to find a successful memecoin on the platform is near 0.12% (1 in 833);
• Poor website usability;
• Tons of scams;
• Sometimes a token is immediately dumped on Raydium. If you bought for example around 40–50K marketcap you may be in a loss immediately once the token is listed on Raydium;
• No funds support the Launchpad’s projects.