Blockchain can get too technical fast, from cryptography to smart contracts to node setup. For less advanced users, even understanding wallet keys can be intimidating, let alone launching digital assets.
Pump.fun had one mission: to make creating Solana memecoins, what used to be a complex and expensive process, simple.
Here’s a look at what Pump.fun is, how to use it, and why it’s back in the spotlight. Dive in for the most detailed review.
TL;DR:
Pump.fun is an application on Solana blockchain that allows users without coding or blockchain experience to launch their own memecoins with just a few clicks, making it as easy as filling out a form. After a big comeback in October 2024 with a new advanced terminal, zero-fee trading, and hints of an airdrop, it’s buzzing with activity again.
What is Pump.fun?
Pump.fun is a platform on the Solana blockchain for creating, discovering, and trading tokens, focused specifically on memecoins.
Before the app, launching a token required coding skills and adding liquidity for it to trade on a DEX. Now, users just need to connect their Solana wallet to start creating tokens with minimal effort and literally no cost.
exquisite technology pic.twitter.com/Mru7lgXd9g
October 29, 2024
The total number of tokens created on the platform since its launch is currently nearing 2.9 billion. See the table below for a more detailed Pump.fun review.
| Pump.fun stats | |
|---|---|
| Blockchain | Solana |
| Native Token | TBA |
| Cumulative Revenue | $161 billion |
| Total Coins Launched | 2.8 billion |
| Max Tokens Launched per Day | 36,336 (Oct 24, 2024) |
| Graduation Rate (% reaching Raydium DEX) | 1.32% |
| Creator Fees | 0 SOL |
| First Buyer Fee | 0.2 SOL |
| Trading Fee | 0–1% |
| Creator rewards (upon completing the bonding curve) | 0.5 SOL (~$86) |
The data is accurate as of November 2024.
Pump.fun growth in 2024
The app launched in January 2024 on the Solana blockchain, founded by anonymous developers Alon and Sapijiju.
Pump.fun has rapidly grown in popularity, helped by a surge in interest in Solana memecoins like WIF and BONK. This momentum attracted celebrity users, such as Iggy Azalea, Andrew Tate, and Jason Derulo, who experimented with launching their own tokens, raising the platform's visibility more.
April 2024: The meme launchpad expanded to support Blast, an Ethereum L2.
July 2024: Pump.fun briefly surpassed the whole Ethereum ecosystem in daily revenue. Its success inspired the launches of similar sites. Solana-based Moonshot, Tron’s SunPump, and Four.meme on BNB Chain are a few examples.
August 2024: The platform experienced a noticeable decline in popularity, which coincided with the launch of SunPump, Pump.fun’s alternative on the TRON blockchain. Discover how they compare in our SunPump article.
October 2024: Pump.fun rebounded by launching the enhanced trading terminal Pump Advanced with zero fees, hosting several successful launches, and a potential airdrop announcement, which drove its daily revenue to new peaks.
By November 2024, it is still a major source of activity on the network, with memecoin transactions from the app making up more than half of daily transactions on Solana DEXs.
Source: Dune
On the flipside, the sudden spike in activity from the platforms creates a significant risk for the network as SOL nodes may struggle to handle the increased transaction volume.
By offering reliable access points to the network, GetBlock ensures that developers and users can interact with Solana smoothly, even during high-traffic periods. GetBlock’s API access enables developers to connect their apps to RPC nodes, providing reliable and instant access to over 50 blockchains. Sign up for a free account now and scale as you go.
How to create a coin on Pump.fun
The app makes it accessible for practically anyone to launch tokens with zero cost and no coding skills.
Here is how to create a coin using Pump.fun:
- Go to the website and connect your Solana wallet;
- On the homepage, click on “Start a New Coin”;
- Choose a unique name and ticker for your memecoin, add a description, and upload the JPEG or a video file;
- Optionally, link your project’s X, Telegram, or website;
- Click “Create Coin,” and it’s launched.
Source: Pump.fun
Before August 2024, launching a token cost 0.2 SOL. Now, this fee is covered by the token’s first buyer, making it even easier to get started as a creator.
How does Pump.fun work?
When launching a memecoin on Pump.fun, it generates a standardized smart contract for the token. The contract sets the token’s metadata.
Source: Solscan
From this point, anyone can buy and sell the coin directly on the website.
Tokenomics and Bonding Curve model
Each memecoin has an initial total supply of 1 billion tokens. Of these, 793 million are allocated to a bonding curve model. This means that token prices increase as more tokens are purchased, similar to Uniswap’s v2 model.
A new coin launches with a market cap of around $5,000.
Graduation
When the bonding curve reaches 100%, raising 85 SOL from the sale of 793 million tokens (a $68,000–$73.000 market cap), it ‘graduates’ from Pump.fun.
Source: Pump.fun
At this point:
- It gets automatically listed on the Raydium DEX;
- Pump.fun receives 2.3 SOL from the bonding curve as a service fee and around $12,000 worth of tokens are deposited as liquidity on Raydium;
- The LP tokens are burned, which means this liquidity cannot be removed;
- The token creator receives a reward of 0.5 SOL.
Most tokens, however, remain on the platform without reaching this threshold. Currently, only around 1.3% of tokens on Pump.fun manage to graduate.
Among these successful launches are Shark Cat (SC), Michi (MICHI), Moo Deng (MOODENG), and Goatseus Maximus (GOAT) coins.
Where to trade Pump.fun crypto?
While the meme launchpad integrates a direct trading feature, buys and sells mainly happen on third-party platforms like Photon, BullX, BONKBot, or Trojan Bot.
These, as per community, are better equipped for trading, while it appears to be challenging to fully analyze and execute trades directly on Pump.fun.
To address this, on October 19, 2024, the website added an enhanced trading tool with features that make it easier to monitor the market in real-time – Pump Advanced. It is also expected to offer zero fees in its first month.
Source: Pump.fun Advanced Terminal
N.B: Memecoins can often clutter your wallet with small, unusable amounts. Check out our guide to SOL Incinerator, a cleanup tool that can help clear these leftover balances and reclaim funds.
Pump.fun potential airdrop
There’s growing anticipation around a potential airdrop from Pump.fun. During a recent X Spaces session, the co-founder confirmed plans to launch a token, suggesting that their airdrop could be “more lucrative than anyone else in the space.”
one of the BIGGEST announcements in pump fun's history is coming up (and one that tons of you have been asking for)
October 18, 2024
join us in tomorrow's spaces for the GRAND REVEAL and an AMA right after 🔥🔥🔥
set your reminders 🔔https://t.co/TX8K8rjk9y
While specific eligibility criteria haven’t been disclosed, the future airdrop may likely be limited to Pump Advanced users.
Benefits of using Pump.fun
The project is developed with the mission of creating an open and community-focused memecoin space where everyone has a fair shot.
Accordingly, there are several advantageous features it offers:
Low entry barrier: Since Pump.fun handles the technical work and charges no fees for setting up smart contracts and providing initial liquidity, it simplifies the process of creating crypto memes and attracts a broader audience.
Fair launch policy: Tokens launched on Pump.fun go through the same launch process with no pre-sales or team allocations, meaning no early insider advantages.
Access to low-cap memecoins: For users interested in spotting trends, Pump.fun is a place to discover memecoins before they hit mainstream exchanges.
A head start in the competitive market: For creators, graduating to a DEX is a milestone that shows potential supporters that the project has already received success and community support.
Despite all the advantages, there are still significant risks that users should be aware of.
Drawbacks and potential risks
The first thing to keep in mind when using Pump.fun or similar platforms comes from the very nature of memecoins. They are notoriously volatile, so users have to account for extreme price swings.
Additionally, the ease and low cost of token creation also lower the barrier for potential bad actors. Despite efforts to safeguard users, the fair launch can’t eliminate the risk of scams and rug pulls.
Another concern is the Pump.fun hack in May 2024, where a former employee exploited a private key vulnerability resulting in the theft of about $2 million in SOL. While the team’s response was swift, it raised questions about the platform’s security measures.
Finally, Pump.fun is closed-source, which might make it harder for attackers to find and exploit weaknesses but also limits transparency and could hide potential risks.
Wrapping up: How to benefit from Pump.fun?
Thanks to its low-cost and accessible setup, Pump.fun is a popular choice for anyone interested in experimenting with token creation and joining Solana’s memecoin scene. However, this also demands utmost caution from traders: it’s highly recommended to be mindful of all the risks involved.
For creators with fresh ideas, however, it is a rather supportive environment. Regardless of background or resources and without the usual financial risks, Pump.fun lets users mint coins with the hope of gaining enough traction to reach a broader audience, making it a perfect environment for experimentation.
