What is Pump.fun And How to Create Memecoin?
The Pump.fun platform focuses on the ease of creating memecoins and is centered around a fair approach to launching projects.
Memecoins continue to take over the cryptocurrency world by combining humor and finance. Thousands of funny cryptocurrencies are popping up on the market every day. All because the creation and distribution of memecoins is becoming easier. Interested individuals don't need to spend years learning a complicated software language to create their own cryptocurrency. Some platforms already offer an easy way to create memecoins. One of these has become Pump.fun.
What is Pump.fun?
Pump.fun is a trading platform based on the Solana network that allows its users to create and trade their own tokens, memecoins in particular. The platform has become popular among both newcomers and experienced enthusiasts due to its simple and accessible process of launching tokens. Pump.fun has attracted the attention of celebrities, who have also ridden the wave of the memecoin movement.
The platform utilizes a bonding curve pricing model that adjusts coin prices based on supply and demand, ensuring fair and dynamic trading. When someone's token reaches $69,000 in market capitalization, its liquidity is added to one of the leading DEXs on Solana, Raydium. If, for example, a token was created on the Blast network, it needs to reach $420,000 in market capitalization before it is automatically added to the Thruster DEX.
Pump.fun was launched in January 2024 and initially supported only the Solana network. However, over time it expanded its functionality to Base and Blast. In its early stages, the platform raised funds from Alliance DAO and has since been one of the most profitable platforms in the crypto space. Users pay 0.02 SOL for the creation of their token. Up to 18,000 new tokens appear on the platform every day, and the platform generates about $1 million in fees every day. The latest record in fee generating is $5.3 million dollars, which is higher than Ethereum. And recently, the Pump.fun team launched beta testing of an update that will no longer charge users for launching a token. Moreover, the platform will pay 0.5 SOL for a successful launch.
How to create memecoin on Pump.fun?
As mentioned above, creating and launching a memecoin on Pump.fun is a fairly simple process. To do this, you need to:
Step 1: Connect Wallet
Go to https://pump.fun/board and click Connect Wallet in the top right corner. Select the desired wallet from the list and follow the prompts. Also make sure you have enough SOL in your wallet to pay the fee when creating memecoin.
Source and Copyright © Pump.fun
Step 2: Create a memecoin
On the homepage, click on Start a new coin to create a memecoin. Fill in the blank spaces: name, ticker and description. Upload a picture of your memecoin and pay the 0.02 SOL fee. Optionally, you can add links to your project's social networks for better promotion.
Source and Copyright © Pump.fun
Step 3: Reaching major milestones
Use social media to promote your project and attract investors. This is necessary for people to start trading your memecoin and its value to grow. Once your memecoin reaches $69,000 or $420,000 market capitalization (depending on the network you choose), Pump.fun will place $12,000 worth of liquidity in Raydium or Thruster DEX and burn the corresponding liquidity provider tokens.
Source and Copyright © Pump.fun
Features of the platform and DYOR
The simplicity and cheapness of creating memecoins in two steps has become the main feature of the Pump.fun platform, thanks to which it has become popular and attracts new users every day. A couple of years ago, the low threshold of entry into the world of cryptocurrencies was only on a conversation level, but over time, more and more projects began to appear that made the difficult path easy. Pump.fun was among them.
The main mathematical tool of the platform is the bonding curve. According to the Pump.fun team's idea, it is needed for fair pricing. It means that as more and more people buy a token, its price rises according to a predetermined curve. Conversely, the price goes down if fewer and fewer people buy the token. This approach helps prevent manipulation.
However, there are risks involved. From the simple high volatility of memecoins and rugpulls to market manipulation. Often, unscrupulous memecoin creators on Pump.fun buy a significant portion of their token before it hits the decentralized exchange and dump it. In addition, they may use multiple wallets to artificially raise the price.
And so, if you're going to create your memecoin on Pump.fun, stay completely honest with your community.
And if you are using Pump.fun to buy fresh memecoins, pay attention to such red flags as newly created wallets of buyers, high percentage of coin offers on several wallet accounts and broken links to the project's social networks.
Conclusion
Pump.fun operates on the concept of providing a level playing field in the crypto industry. The platform offers an easy way to create your own token, and millions of users have taken advantage of this opportunity. Despite this idea, there are risks associated with it that users should consider before creating their token or trading existing ones.
