What's Behind Solana's Biggest Meme Launch Platform Pump.fun?

BeginnerApr 25, 2024
The world of memes is always full of entertainment. Recently, a platform with the domain name "fun" — Pump.fun — has attracted considerable attention in the crypto community. Even professional poker player Tom Dwan mentioned Pump.fun in a tweet, hinting at his interest in its gambling entertainment.
What's Behind Solana's Biggest Meme Launch Platform Pump.fun?

Forward the Original Title ‘神盘频出,Solana最大Meme发射平台Pump.fun是何来头?’

Internet culture and Meme have long occupied an important position in cryptocurrency. “Value investing sucks” is also a high-level summary of the market’s enthusiasm for Meme hype this time.

When it comes to Memes, Solana is indispensable. Starting from Silly last year, Solana’s meme projects have been continuously launched, including the widely popular hat dog WIF, the trendsetter BOME that initiated the “presale payment” trend, the “resurrected” SLERF, and more.

The world of Memes is never short of entertainment. Recently, a platform with the domain name “fun” - Pump.fun has attracted a lot of attention in the crypto community. Even American professional poker player Tom Dwan mentioned Pump.fun in a tweet, hinting that he was interested in Pump.fun’s gambling entertainment.

As a platform dedicated to meme speculation, Pump.fun was originally launched for Solana. On the platform, one can deploy tokens at a cost of less than $2. At present, Pump.fun may already be the Memecoin platform with the largest traffic on the Solana ecosystem, and has added support for Ethereum L2 Blast.

Pump.fun may have integrated the demand for meme hype

Due to the extremely low cost of launching memes, a large number of new trading pairs are listed on decentralized exchanges every day, making it a fast-paced field. But it is also for this reason that the average lifespan of most meme projects is often 24 hours or even shorter. This is mainly because bad actors attempt to exploit this fervor by carefully planning scams and marketing to deceive ambitious and unsuspecting investors.

The “Meme presale craze” previously sparked by BOME is a good example. The Shenpan BOME achieved a 50-fold increase in a single day, setting off waves of pre-sale frenzy in the crypto community within a week, even spreading from the Solana chain to other public chains. However, most presale projects have experienced rugs. Among them, after the Avalanche fundraising project Sener raised about 93,000 AVAX (about 4.8 million US dollars). Afterward, the founder transferred a large amount of AVAX away, and the project token SENDER saw only a slight increase before entering a comprehensive selling stage.

Related Reading:”Chaos occurs frequently, projects run away, and the “pre-sale money making” model has come to an end.

There are countless similar examples. According to ZachXBT statistics, only 27 Solana chain presale projects have raised over 655,000 SOL (over 114 million US dollars). In response, Solana co-founder Anatoly Yakovenko called for a stop to sending money to pre-sale projects.

Nevertheless, the fervent crypto world continues to pursue the password to the next hundredfold profit, and the community’s enthusiasm for participating in memes only seems to be increasing. The process of meme trading usually involves people discovering meme coins, checking all the details on Birdeye or DEXscreener, and then trading on Jupiter. For many early meme coins, wallets may not even have basic support. Currently, a DEX suitable for meme coins is Raydium, but the experience is not optimal.

People hope to create a website similar to Birdeye specifically for meme coins, more socialized, where major influencers can praise each other and replicate trades. Pump.fun meets the needs of meme enthusiasts.

Why does Pump.fun stand out?

Click to open the Pump.fun’s official website, you’ll sense Meme. The transaction records at the top keep flashing, and the latest released Memes displayed at the bottom of the page are also updated in a pop manner. Due to the high frequency of transactions and deployment, the entire page keeps shaking like aftershocks. You can describe it as “abstract”, and many users said that the website pages “shake their eyes so much”.

When you click on the “how it works” option, there is only a card with 5 sentences, which introduces the core transaction process of the entire platform. But this is actually more in line with Meme’s magical and fanatical labels. The crazier it is, the more likely it is to attract attention and build consensus.

But Pump.fun is a platform that serves Meme after all. Each Meme below has basic information such as the creator, market value, number of comments, and narrative clearly written on it. Select any Meme to view the detailed information of the coin and start a transaction.

Frequent unique share order

The first meme deployed on Pump.fun was TEST, which generated revenue of over $5 million for Pump.fun and officially brought Pump.fun into the community’s view.

It is reported that TEST was created by the Pump.fun development team. On April 5th, a developer wrote a script to obtain the first batch of tokens deployed through the Pump.fun smart contract, including TEST.

Due to the early deployment time of TEST, it could not be purchased through the pump.fun website and many people believed that TEST could not be purchased. At this time, a community member discovered a method to purchase TEST using request interception tools, and then some buyers used this tool to spend 100 SOL to purchase nearly 50% of the TEST supply. Due to a severe supply imbalance, the price of TEST soared.

However, the rise of TEST did not last long. Early buyers were not willing to hold TEST for a long time and withdrew one after another after the rise of TEST, causing the price of TEST to plummet. With more than 90% of the positions of early buyers exited, the distribution of TEST gradually became healthier.

Subsequently, community members contacted the pump.fun developers and confirmed that TEST was a meme deployed by the pump.fun team, and this was reported in the community telegram channel. After the news spread, a large number of traders flocked to pump.fun, bringing in revenue of over $5 million, and rumors circulated in the community that the pump.fun team had completed a large-scale fundraising.

The daily revenue of Pump.fun (source: The Block)

The popularity of pump.fun also brought many memes with relatively high heat, such as bert, which multiplied tenfold within 15 minutes of opening; WEI’s background is an AI-generated girl’s self-introduction, saying that she likes the Solana ecosystem very much, which is very abstract. It tripled in half an hour, but unfortunately, these memes cannot survive for more than a day and will return to zero.

The most noteworthy meme is SC, which rose by over 100 times in just 5 days of opening, and is called the most successful meme on Pump. According to Lookonchain monitoring, a trader spent 6.6 SOL to purchase 33.6 million SC 5 hours after opening. When the profit exceeded 1000 times, he only sold 4.6 million SC to obtain 768 SOL ($145,000), still holding 29 million SC, now worth $2 million, with a profit of 1,730 times. In addition, SC is also one of the few meme coins on the platform that has not experienced a pvp, and at the time of writing, the market value of SC has reached $97 million.

Productizing Meme

Although the website content is relatively simple, with only a few sentences of introduction, the functionality of this platform from coin issuance to subsequent exchange listing is quite comprehensive.

For traditional coin issuance processes, there is a need to consider expensive setup fees and the demand for liquidity farming, which can result in high costs. However, on pump.fun, users can automatically deploy a token in a short time at a cost of less than $2.

Most importantly, pump.fun aims to prevent rug behaviors associated with meme coin issuance. Traditional coin issuance comes with complexity and risks, as pre-sales are susceptible to scams and require advanced tools to monitor behaviors such as renouncing token minting rights.

To address this, pump.fun offers an alternative to existing coin issuance models, typically following one of two paths. Either directly deploy the token and establish liquidity on DEXs like Raydium, then renounce minting rights, lock up or burn liquidity provider tokens, or conduct a pre-sale where participants send funds to an address without an immediate return.

Because it maximizes fairness by eliminating team allocations, there is no “rat trading” that many retail investors detest. Similar to the recent hype around SLERF, which burned all its private sale SOL tokens in a pool, both can be considered “people’s memes,” allowing users who deploy tokens to build their own communities. In summary, pump.fun productizes what meme teams aim to do, providing end-to-end services from token naming and logo design to liquidity provision and liquidity burning.

Once a meme is successfully deployed on Solana, if the token’s market value reaches $69,000, $12,000 of liquidity will be deposited into Raydium on the Solana chain and automatically burned. On-chain valuation requirements on Blast are higher, at $420,000, with $30,000 of liquidity deposited into Thruster DEX. When the market value reaches a certain amount, pump.fun’s liquidity will be automatically added to Raydium.

Although pump.fun’s productized service does simplify the meme issuance process, it is still not easy to get listed on Raydium or Thruster DEX. Community members have burned 182 memes using pump.fun, with only 37 successfully listed on Raydium, resulting in a success rate of approximately 20%. Nevertheless, @Sartoshi0x has still managed to profit over $640,000 from this process.

How to send Meme with one click on pump.fun

Before deployment, you can save 0.05 SOL in the wallet and enter the website. Then, click on the upper right corner to connect to the wallet.

After connecting to the wallet, click “start a new coin” in the center of the homepage, go to the deployment interface and enter information, write name (name of the creator), ticker (name of the Meme coin), description (narrative of the Meme coin), and select one Picture, and finally click “Create coin” to create a Meme.

It will then show whether you want to purchase the Meme you deployed in advance. Purchasing in advance can prevent robots from sniping the tokens. The purchase is optional and there is no compulsory requirement. The deployment cost is 0.02 SOL, which must be paid. After paying the fee, the deployment is completed.

Pump.fun offers an alternative solution for existing token issuance, garnering attention with its ultra-low-cost token issuance and high degree of automation. However, just as @Sartoshi0x can easily deploy hundreds of memes, it’s hard to imagine the subsequent maintenance and operational processes. Some in the community even view this as “scam behavior.” However, it’s certain that @Sartoshi0x is not the only player leveraging token issuance to earn substantial profits on pump.fun.

Moreover, a prominent issue with Pump.fun is the prevalence of pvp phenomena, where a few participants in the presale obtain the majority of the chips, resulting in retracements of 50%-90% after trading opens. Although excessive token price increases at the opening may deter new users from purchasing tokens, many users still manage to profit by buying in during the early stages.

Given this, it’s not surprising if there are bots in the market automatically monitoring projects about to be listed on DEXs. However, both risks and rewards exist, and just as bots are specializing in hitting the hard cap, there will inevitably be “traps” targeting bots as well. Meme speculation is always a high-risk game and Pump.fun is still a relatively early platform. Whether it can bring enough surprises to meme enthusiasts in the later stages remains to be seen. BlockBeats reminds readers here that meme liquidity fluctuates greatly, so it’s important to be vigilant and discerning of risks.

Disclaimer:

  1. This article is reprinted from [Theblockbeats](https://www.theblockbeats.info/news/52889]. Forward the Original Title‘神盘频出,Solana最大Meme发射平台Pump.fun是何来头?’. All copyrights belong to the original author [Luccy, Frost]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
  2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
  3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.

What's Behind Solana's Biggest Meme Launch Platform Pump.fun?

BeginnerApr 25, 2024
The world of memes is always full of entertainment. Recently, a platform with the domain name "fun" — Pump.fun — has attracted considerable attention in the crypto community. Even professional poker player Tom Dwan mentioned Pump.fun in a tweet, hinting at his interest in its gambling entertainment.
What's Behind Solana's Biggest Meme Launch Platform Pump.fun?

Forward the Original Title ‘神盘频出,Solana最大Meme发射平台Pump.fun是何来头?’

Internet culture and Meme have long occupied an important position in cryptocurrency. “Value investing sucks” is also a high-level summary of the market’s enthusiasm for Meme hype this time.

When it comes to Memes, Solana is indispensable. Starting from Silly last year, Solana’s meme projects have been continuously launched, including the widely popular hat dog WIF, the trendsetter BOME that initiated the “presale payment” trend, the “resurrected” SLERF, and more.

The world of Memes is never short of entertainment. Recently, a platform with the domain name “fun” - Pump.fun has attracted a lot of attention in the crypto community. Even American professional poker player Tom Dwan mentioned Pump.fun in a tweet, hinting that he was interested in Pump.fun’s gambling entertainment.

As a platform dedicated to meme speculation, Pump.fun was originally launched for Solana. On the platform, one can deploy tokens at a cost of less than $2. At present, Pump.fun may already be the Memecoin platform with the largest traffic on the Solana ecosystem, and has added support for Ethereum L2 Blast.

Pump.fun may have integrated the demand for meme hype

Due to the extremely low cost of launching memes, a large number of new trading pairs are listed on decentralized exchanges every day, making it a fast-paced field. But it is also for this reason that the average lifespan of most meme projects is often 24 hours or even shorter. This is mainly because bad actors attempt to exploit this fervor by carefully planning scams and marketing to deceive ambitious and unsuspecting investors.

The “Meme presale craze” previously sparked by BOME is a good example. The Shenpan BOME achieved a 50-fold increase in a single day, setting off waves of pre-sale frenzy in the crypto community within a week, even spreading from the Solana chain to other public chains. However, most presale projects have experienced rugs. Among them, after the Avalanche fundraising project Sener raised about 93,000 AVAX (about 4.8 million US dollars). Afterward, the founder transferred a large amount of AVAX away, and the project token SENDER saw only a slight increase before entering a comprehensive selling stage.

Related Reading:”Chaos occurs frequently, projects run away, and the “pre-sale money making” model has come to an end.

There are countless similar examples. According to ZachXBT statistics, only 27 Solana chain presale projects have raised over 655,000 SOL (over 114 million US dollars). In response, Solana co-founder Anatoly Yakovenko called for a stop to sending money to pre-sale projects.

Nevertheless, the fervent crypto world continues to pursue the password to the next hundredfold profit, and the community’s enthusiasm for participating in memes only seems to be increasing. The process of meme trading usually involves people discovering meme coins, checking all the details on Birdeye or DEXscreener, and then trading on Jupiter. For many early meme coins, wallets may not even have basic support. Currently, a DEX suitable for meme coins is Raydium, but the experience is not optimal.

People hope to create a website similar to Birdeye specifically for meme coins, more socialized, where major influencers can praise each other and replicate trades. Pump.fun meets the needs of meme enthusiasts.

Why does Pump.fun stand out?

Click to open the Pump.fun’s official website, you’ll sense Meme. The transaction records at the top keep flashing, and the latest released Memes displayed at the bottom of the page are also updated in a pop manner. Due to the high frequency of transactions and deployment, the entire page keeps shaking like aftershocks. You can describe it as “abstract”, and many users said that the website pages “shake their eyes so much”.

When you click on the “how it works” option, there is only a card with 5 sentences, which introduces the core transaction process of the entire platform. But this is actually more in line with Meme’s magical and fanatical labels. The crazier it is, the more likely it is to attract attention and build consensus.

But Pump.fun is a platform that serves Meme after all. Each Meme below has basic information such as the creator, market value, number of comments, and narrative clearly written on it. Select any Meme to view the detailed information of the coin and start a transaction.

Frequent unique share order

The first meme deployed on Pump.fun was TEST, which generated revenue of over $5 million for Pump.fun and officially brought Pump.fun into the community’s view.

It is reported that TEST was created by the Pump.fun development team. On April 5th, a developer wrote a script to obtain the first batch of tokens deployed through the Pump.fun smart contract, including TEST.

Due to the early deployment time of TEST, it could not be purchased through the pump.fun website and many people believed that TEST could not be purchased. At this time, a community member discovered a method to purchase TEST using request interception tools, and then some buyers used this tool to spend 100 SOL to purchase nearly 50% of the TEST supply. Due to a severe supply imbalance, the price of TEST soared.

However, the rise of TEST did not last long. Early buyers were not willing to hold TEST for a long time and withdrew one after another after the rise of TEST, causing the price of TEST to plummet. With more than 90% of the positions of early buyers exited, the distribution of TEST gradually became healthier.

Subsequently, community members contacted the pump.fun developers and confirmed that TEST was a meme deployed by the pump.fun team, and this was reported in the community telegram channel. After the news spread, a large number of traders flocked to pump.fun, bringing in revenue of over $5 million, and rumors circulated in the community that the pump.fun team had completed a large-scale fundraising.

The daily revenue of Pump.fun (source: The Block)

The popularity of pump.fun also brought many memes with relatively high heat, such as bert, which multiplied tenfold within 15 minutes of opening; WEI’s background is an AI-generated girl’s self-introduction, saying that she likes the Solana ecosystem very much, which is very abstract. It tripled in half an hour, but unfortunately, these memes cannot survive for more than a day and will return to zero.

The most noteworthy meme is SC, which rose by over 100 times in just 5 days of opening, and is called the most successful meme on Pump. According to Lookonchain monitoring, a trader spent 6.6 SOL to purchase 33.6 million SC 5 hours after opening. When the profit exceeded 1000 times, he only sold 4.6 million SC to obtain 768 SOL ($145,000), still holding 29 million SC, now worth $2 million, with a profit of 1,730 times. In addition, SC is also one of the few meme coins on the platform that has not experienced a pvp, and at the time of writing, the market value of SC has reached $97 million.

Productizing Meme

Although the website content is relatively simple, with only a few sentences of introduction, the functionality of this platform from coin issuance to subsequent exchange listing is quite comprehensive.

For traditional coin issuance processes, there is a need to consider expensive setup fees and the demand for liquidity farming, which can result in high costs. However, on pump.fun, users can automatically deploy a token in a short time at a cost of less than $2.

Most importantly, pump.fun aims to prevent rug behaviors associated with meme coin issuance. Traditional coin issuance comes with complexity and risks, as pre-sales are susceptible to scams and require advanced tools to monitor behaviors such as renouncing token minting rights.

To address this, pump.fun offers an alternative to existing coin issuance models, typically following one of two paths. Either directly deploy the token and establish liquidity on DEXs like Raydium, then renounce minting rights, lock up or burn liquidity provider tokens, or conduct a pre-sale where participants send funds to an address without an immediate return.

Because it maximizes fairness by eliminating team allocations, there is no “rat trading” that many retail investors detest. Similar to the recent hype around SLERF, which burned all its private sale SOL tokens in a pool, both can be considered “people’s memes,” allowing users who deploy tokens to build their own communities. In summary, pump.fun productizes what meme teams aim to do, providing end-to-end services from token naming and logo design to liquidity provision and liquidity burning.

Once a meme is successfully deployed on Solana, if the token’s market value reaches $69,000, $12,000 of liquidity will be deposited into Raydium on the Solana chain and automatically burned. On-chain valuation requirements on Blast are higher, at $420,000, with $30,000 of liquidity deposited into Thruster DEX. When the market value reaches a certain amount, pump.fun’s liquidity will be automatically added to Raydium.

Although pump.fun’s productized service does simplify the meme issuance process, it is still not easy to get listed on Raydium or Thruster DEX. Community members have burned 182 memes using pump.fun, with only 37 successfully listed on Raydium, resulting in a success rate of approximately 20%. Nevertheless, @Sartoshi0x has still managed to profit over $640,000 from this process.

How to send Meme with one click on pump.fun

Before deployment, you can save 0.05 SOL in the wallet and enter the website. Then, click on the upper right corner to connect to the wallet.

After connecting to the wallet, click “start a new coin” in the center of the homepage, go to the deployment interface and enter information, write name (name of the creator), ticker (name of the Meme coin), description (narrative of the Meme coin), and select one Picture, and finally click “Create coin” to create a Meme.

It will then show whether you want to purchase the Meme you deployed in advance. Purchasing in advance can prevent robots from sniping the tokens. The purchase is optional and there is no compulsory requirement. The deployment cost is 0.02 SOL, which must be paid. After paying the fee, the deployment is completed.

Pump.fun offers an alternative solution for existing token issuance, garnering attention with its ultra-low-cost token issuance and high degree of automation. However, just as @Sartoshi0x can easily deploy hundreds of memes, it’s hard to imagine the subsequent maintenance and operational processes. Some in the community even view this as “scam behavior.” However, it’s certain that @Sartoshi0x is not the only player leveraging token issuance to earn substantial profits on pump.fun.

Moreover, a prominent issue with Pump.fun is the prevalence of pvp phenomena, where a few participants in the presale obtain the majority of the chips, resulting in retracements of 50%-90% after trading opens. Although excessive token price increases at the opening may deter new users from purchasing tokens, many users still manage to profit by buying in during the early stages.

Given this, it’s not surprising if there are bots in the market automatically monitoring projects about to be listed on DEXs. However, both risks and rewards exist, and just as bots are specializing in hitting the hard cap, there will inevitably be “traps” targeting bots as well. Meme speculation is always a high-risk game and Pump.fun is still a relatively early platform. Whether it can bring enough surprises to meme enthusiasts in the later stages remains to be seen. BlockBeats reminds readers here that meme liquidity fluctuates greatly, so it’s important to be vigilant and discerning of risks.

Disclaimer:

  1. This article is reprinted from [Theblockbeats](https://www.theblockbeats.info/news/52889]. Forward the Original Title‘神盘频出,Solana最大Meme发射平台Pump.fun是何来头?’. All copyrights belong to the original author [Luccy, Frost]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
  2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
  3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.
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