Pump.Fun
Pump.fun link: https://pump.fun/board
What is Pump.fun and How Does It Work?
Pump.fun is an automated token launch platform on Solana that allows anyone to create and trade memecoins instantly with built-in liquidity. It has gained massive popularity due to its low barriers to entry, automated liquidity provisioning, and viral marketing dynamics.
How Pump.fun Works
Instant Token Creation – Anyone can launch a token within seconds by paying a small fee (~5$). The platform automatically deploys the token, adds initial liquidity, and lists it on a decentralized exchange (DEX) like Raydium.
Pre-Launch Sniping – Before a token is publicly tradable, insiders and bots can spot new launches and buy early at a low price (before migration on Raydium).
Hyped Social Trading – Pump.fun has built-in social mechanics where top-performing tokens are displayed, attracting more buyers. Many traders join in purely due to FOMO.
Automated Market Making – The platform controls liquidity distribution, making trading smooth and reducing risks like immediate rugpulls.
Sell Tax & Fee Model – Pump.fun collects fees on token trading, ensuring the platform benefits from every transaction, whether the token moons or dies.
Why Did Pump.fun Become So Popular?
Accessibility – No coding skills or complex setup required to launch a token.
Casino-Like Experience – Traders love the gambling aspect, where any token can 100x overnight.
Community & Virality – Memecoins launched on Pump.fun spread fast on Twitter, Telegram, and Discord, fueling hype cycles.
Transparency & Fairness (to Some Extent) – Since liquidity is auto-added, it reduces traditional rugpull risks where devs remove funds manually.
While Pump.fun has made launching memecoins easier than ever, it also encourages extreme speculation and short-lived pump & dump cycles, making it a high-risk but high-reward playground.
To learn more and see how it looks like you can watch this video: https://youtu.be/m8b9kCEs23k?si=KOsJM67-ZNw76XZG
Last updated