Key Points
- What is Pump.fun platform?
- Key Features of the Pump.fun Platform
- Trading Terminal and its new features
- How to Launch a Meme Token Using Pump.fun
- Promoting your meme coin post-creation.
What Is Pump.Fun?
Pump.fun is a platform for trading and creating meme tokens on the Solana and Blast blockchains. Pump.fun Platform launched in January 2024, it quickly gained popularity for enabling users to create meme coins without initial liquidity for a fee of 0.02 SOL. To prevent speculation and fraud, Platform’s service guarantees that all meme coins are launched without pre-sale or team allocation.
After a meme coin is created, trading begins. If a large number of users buy the token and its market capitalization reaches $69,000, Pump.fun automatically stops trading and transfers the asset to a liquidity pool on Raydium. Market cap of $420,000 is required for tokens on the blast network, before liquidity is deposited on the Thruster DEX.
Pump.fun platform is privately managed by its anonymous founders but received early support from the venture firm Alliance DAO.
Key Features of the Platform
Some key features offered by Pump.fun platform.
Cost-Effective and Simple Process
Developers can choose a name for the token, ticker, and image for their token and list it on the site for a nominal fee of 0.02 SOL. The asset becomes instantly available for trading.
Bonding Curve Dynamics
Bonding curve mathematical model used by the platform users to determine token prices. Prices increase with demand, allowing early investors to take benefits from initial prices.
Liquidity Provision and Burning Mechanism
After reaching the limit fixed for $69,000 for Solana tokens and $420,000 for Blast tokens, tokens listed on the Raydium exchange by the Pump.fun platform. A part of the liquidity is then burned, reducing supply and potentially increasing asset value.
Rug Pull Protection
A rug pull happens when developers of a project deceive investors and disappear with their money. 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 and Its New Features
On October 19, 2024, Pump.fun introduced several new ideas aimed at increasing user engagement on the platform and within the meme coin segment. A significant announcement was made to a wave of trading fees for the 1st month, which means from October 19, 2024, to November 19, 2024. This announcement is made for boosting the number of audience’s volume in this sector. However, the key innovation is the launch of an enhanced trading terminal called Pump Advanced.
In the advanced section, to access the new service, a user has to register and login via their email.
After logging in, a non-custodial wallet is automatically created for all operations on the platform. Private key linked to email provides an authentication solution.
New Features of the Terminal
- Quick asset ownership analysis by mini charts and data on major tokens.
- Added an enhanced filter to search tokens by filtering by market cap, trading volume in the market and holder count.
- Added 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 advanced terminal shows all the necessary information for decision making. Advanced interface shows creator token shares, asset creation dates, trading volumes, and the market.
Video Tokenization Feature
Video Tokenization Feature was another important update, the ability to tokenize videos for creating more engaging and interactive meme coins. In the starting phase, users use the static image for their assets logo, but after this update, users now can 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 a part of the video to display as a thumbnail on the trading platform while the full video appears on their meme coin page 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 are provided.
One of Pump.fun’s co-founders in response to questions during a meeting responded to a question,:
“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…”
Examples of Tokens Launched Via Pump.fun
After launching through Pump.fun several meme coins have achieved success.
At the writing of this report, one of the meme coins, such as Shark Cat, which has reached a market cap of 100 million dollars. The project boasts a Telegram channel with over 4,000 subscribers and X 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, which trades at approximately $0.003 with a market cap exceeding $2.9 million.
How to Launch a Memecoin Using Pump.fun
To launch a meme coin through this platform, follow these steps:-
1:- Visit the https://pump.fun/board website and connect your wallet.
2:- Click “Start a new coin” and fill in all necessary details such as name, ticker, image, and asset description. You may also add links to social media or project websites if desired.
3:- After paying a nominal fee of 0.02 SOL, your token will be immediately available for trading.
Promoting Your Meme Coin Post-Creation
After launching your meme coin, effective promotion is essential for attracting potential investors.
The success of a meme coin often depends on having a strong community around it. Creating social media pages on platforms like Telegram and X while actively engaging new audiences is so important.
Establishing a website that shares important details about your asset is very beneficial. Pump.fun also includes an integrated forum where developers can interact with potential investors and encourage them to purchase tokens.
Conclusion
Pump.fun project has provided a platform launching meme coins that continues to attract more users due to its simplicity in creating tokens on Solana and the blast blockchains.
While it shows significant potential and profitability, it also carries risks associated with volatility, frauds like rug pulls, and price manipulation commonly seen with meme tokens.
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.
