Meme tokens have become an essential part of the cryptocurrency industry. According to CoinMarketCap, the total market capitalization of meme tokens exceeds $66.75 billion. This sector is attracting more crypto enthusiasts looking for quick investment opportunities.
In this context, the platform Pump.fun allows anyone to create meme tokens on the Solana blockchain.
In this article, Coinpaper will explain what this service is and how to use it to launch your own meme coin.
What is Pump.fun?
Pump.fun is a platform for trading and creating meme tokens on the Solana and Blast blockchains. Launched in January 2024, it quickly gained popularity for enabling users to create meme coins without i nitial liquidity for a fee of 0.02 SOL. The service guarantees that all meme coins are launched without pre-sales or team allocations to prevent speculation and fraud.
Once a meme coin is created, trading begins. If enough users buy the token and its market capitalization reaches $69,000, Pump.fun automatically halts trading and transfers the asset to a liquidity pool on Raydium. For tokens on the Blast network, the market cap requirement is $420,000 before liquidity is deposited on Thruster DEX.
As of now, the platform is privately managed by its anonymous founders but received early support from the venture firm Alliance DAO.
Key Features of the Platform
Here are some key features offered by Pump.fun:
Cost-effective and simple process. Developers can choose a name, ticker, and image for their token and list it on the site for 0.02 SOL. The asset becomes instantly available for trading.
Bonding curve dynamics. The platform uses a mathematical model called a bonding curve to determine token prices dynamically. Prices increase with demand, allowing early investors to benefit from lower initial prices.
Liquidity provision and burning mechanism. After reaching the threshold ($69,000 for Solana tokens and $420,000 for Blast tokens), Pump.fun lists the meme token on Raydium. A portion of the liquidity is then burned, reducing supply and potentially increasing asset value.
Rug pull protection. Tokens issued on Pump.fun are protected from rug pulls—common crypto scams where issuers withdraw liquidity, leaving investors without funds. Each asset undergoes a launch without pre-sales or team allocations, minimizing this risk.
Trading terminal. The site offers a trading terminal where users can track prices, trade meme tokens, and access historical transaction data.
Trading Terminal
On October 19, 2024, Pump.fun introduced several innovations aimed at increasing user engagement on the platform and within the meme coin segment.
A significant announcement was the temporary suspension of trading fees and token creation charges (from October 19 to November 19, 2024). This initiative aims to expand the audience and boost trading volumes in this sector.
However, the key innovation is the launch of an enhanced trading terminal called Pump Advanced.
To access this new service, users must navigate to the Advanced section and register or log in using their email.
Upon logging in, a non-custodial wallet is automatically created for all operations on the platform. Storing private keys linked to email provides an authentication solution through Privy Wallet.
New Features of the Terminal
Pump Advanced offers an improved set of tools for traders, including:
Mini-charts and data on major token holders for quick asset ownership analysis.
Enhanced filters to sort tokens by trading volume, market cap, and holder count.
A quick purchase tool next to the ”Filter” button that calculates the percentage of token supply corresponding to a specified amount after entering an asset’s price.
Overall, compared to the basic interface, this terminal displays all necessary information for decision-making: data on holder counts, creator token shares, asset creation dates, trading volumes, and market capitalization.
Video Tokenization Feature
Another important update was the ability to tokenize videos for creating more engaging and interactive meme coins. Instead of using static images as assets’ logos, users can now incorporate video frames as part of their tokens. The platform supports various video formats and lengths while retaining audio tracks upon upload.
Users can select segments to display as thumbnails on trading platforms while full videos appear on their meme coin pages on Pump.fun.
However, this feature was later discontinued due to concerns raised by users regarding its implementation.
Potential Airdrop
Alongside the introduction of Pump Advanced, the Pump.fun team announced plans for launching a project token with subsequent distribution to platform users. While no specific details were provided, representatives hinted that active users might receive generous rewards.
”We definitely plan to launch a token in the future. I can’t say when; that’s still ahead. As for the airdrop, while there are no guarantees, it will likely be much more rewarding than anyone else’s…” commented one of Pump.fun‘s co-founders in response to questions during a meeting.
These statements have heightened interest in the platform as a potential airdrop could serve as an important incentive for the community and strengthen Pump.fun‘s position amid increasing competition.
Examples of Tokens Launched via Pump.fun
Several meme coins have achieved success after launching through Pump.fun.
One such meme token is Shark Cat (SC), which has reached a market capitalization exceeding $100 million at the time of writing. The project boasts a Telegram channel with over 4,000 subscribers and X (formerly Twitter) with more than 16,000 followers. Interestingly, its white paper consists of just one page featuring an image of the token and its address on the Solana blockchain.
Another meme coin launched via Pump.fun is Ansem’s Cat (HOBBES), which trades at approximately $0.003 with a market cap exceeding $2.9 million as of June 6, 2024.
How to Launch a Meme Token Using Pump.fun – Instructions
To launch a meme coin through this platform, follow these steps:
Visit the website and connect your wallet.
Click ”Start a new coin” and fill in details such as name, ticker, image, and asset description. You may also add links to social media or project websites if desired.
After paying a fee of 0.02 SOL, your token will be immediately available for trading.
Note: You can trade your asset using either the built-in trading terminal on the site or specialized Telegram bots like Trojan or Banana Gun.
Promoting Your Meme Coin Post-Creation
To ensure that your newly created meme token appreciates in value, effective promotion is essential for attracting potential investors.
The success of a meme coin often hinges on having a strong community around it. Creating social media pages on platforms like Telegram and X while actively engaging new audiences is crucial.
Additionally, establishing a themed project website detailing your asset’s features is beneficial. Pump.fun also includes an integrated forum where developers can interact with potential investors and encourage them to purchase tokens.
Conclusions
The project has provided a platform for launching meme coins that continues to attract more users due to its simplicity in creating tokens on Solana and Blast blockchains. While it demonstrates significant potential and profitability, it also carries risks associated with volatility, frauds like rug pulls, and price manipulation commonly seen with meme tokens.
Using Pump.fun necessitates careful risk assessment when approaching investments cautiously. The platform has already generated profits for users but remember that success with meme coins created through it is not guaranteed; it largely depends on how effectively you promote your token within your community.
Frequently Asked Questions
What is a meme coin? A token based on internet memes often supported by fan communities used for entertainment or speculation in cryptocurrency markets; popular examples include Dogecoin and Shiba Inu.
What is Pump.fun? A platform for launching and trading meme coins that allows users to create their own tokens on Solana and Blast blockchains.
Is programming knowledge required? No; programming skills are not necessary to launch a meme coin via Pump.fun as it simplifies token creation with intuitive tools and instructions accessible even to non-technical users.
This article was originally Posted on Coinpaper.com
