You Can Find It In This Article
The cryptocurrency industry has become a major player in the meme token market. CoinMarketCap reports that the market cap of meme tokens is over $66.75 billion. The sector has attracted more cryptocurrency enthusiasts who are looking to make quick investments.
Pump.fun, a platform that allows users to generate meme tokens using the Solana Blockchain.
Coinpaper.com explains what it is in this article and how you can use this service to create your meme coin.
Pump.fun allows users to create meme tokens and trade them on the Solana or Blast blockchains. It was launched in January 2024 and quickly became popular for its ability to allow users to generate meme coins for just 0.02 SOL. To prevent fraud and speculation, the service ensures that no meme coins will be launched with pre-sales.
Trading begins once a meme coin has been created. When the market cap reaches $69,000 and enough users have bought the token, Pump.fun will automatically stop trading the token. The asset is then transferred to the Raydium liquidity pool. The market capitalization requirement for tokens in the Blast Network is $420,000.
The platform, which is currently privately run by anonymous founders, has received some early funding from venture capital firm Alliance DAO.
The Platform: Key Features
These are the key features of Pump.fun.
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A simple and cost-effective process. Developers are able to choose the name, image, ticker and other details for their token, then list them on the website for only 0.02 SOL. Assets are instantly made available to trade.
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Bonding curve dynamics. Platform uses mathematical model known as a Bonding Curve to dynamically determine token prices. The prices increase in line with the demand. This allows early investors to take advantage of lower initial price.
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Burning mechanism and liquidation provision. Pump.fun will list the meme token, once it reaches the required threshold (currently $69,000 for Solana and $420,000 Blast) on Raydium. The liquidity is burned to reduce supply, potentially increasing the asset’s value.
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Rug-pull protection. Rug pull protection. Tokens on Pump.fun will be protected against rug pulling, a common crypto scam where the issuer withdraws liquidity and leaves investors with no funds. This risk is minimized by launching each asset without any pre-sales, team allocations or other forms of pre-sale.
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Trading terminal. Users can access historical data, track price changes, and trade meme tokens through the site’s trading terminal.
Trading Terminal
Pump.fun launched several new innovations on October 19, 2024 to increase user engagement within the platform, and the meme coin segment.
The announcement of the suspension of token fees (October 19-2024) and trading charges was a significant one. The initiative is aimed at increasing the trading volume and expanding audience in this industry.
The launch of Pump Advanced, an improved trading terminal is the main innovation.
Users must first navigate to Advanced and then register using email or login.
A non-custodial Wallet is created automatically upon logging into the platform. Privy Wallet can provide authentication by storing private keys that are linked to an email.
The Terminal has New Features
Pump Advanced provides traders with a set of improved tools, such as:
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Quickly analyze the ownership of assets using mini-charts, data and token holders.
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Filters to sort tokens based on trading volume, market capitalization, and holders count.
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The quick-purchase tool is located next to “Filter”, and calculates the token supply percentage corresponding to an amount specified after you enter the asset price.
This terminal provides all the information necessary for making decisions, including data about holder counts and creator tokens, dates of asset creation, volumes traded, market capitalization, as well as information on trading volume.
Video Tokenization Feature
A second important upgrade was the addition of video tokens to create more interactive and engaging meme coins. Users can use video frames instead of static images to create their assets logos. Platform supports a variety of video lengths and formats, while maintaining audio tracks when uploaded.
On Pump.fun, users can choose segments that will appear as thumbnails in trading platforms and full videos on the meme coin page.
This feature has been discontinued because of concerns expressed by users about its implementation.
Potential Airdrop
Pump.fun announced that it would launch a token project and distribute them to users of the platform. Representatives did not provide any specifics, but hinted at the possibility of generous rewards for active users.
We definitely intend to introduce a token at some point in the near future. It’s too early to say. While there is no guarantee, the airdrop will be more lucrative than any other …”, commented a Pump.fun co-founder in response to a question during a recent meeting.
This has increased interest as the potential of an airdrop can serve as a valuable incentive to the community, and help Pump.fun maintain its position in the face of increasing competition.
Example Tokens Developed via Pump.fun
Launched through Pump.fun, several meme coins are a success.
Shark Cat is one such meme token. Its market cap was over $100 million as of the date this article was written. This project has a Telegram Channel with more than 4,000 Subscribers and an X account (formerly Twitter), with 16,000+ followers. Its white paper is a single page with an image of the Token and its Solana Blockchain address.
Ansem’s Cat (HOBBES) is another meme coin that was launched through Pump.fun. It trades for approximately $0.003 and has a market capitalization of $2.9 million by June 6, 2024.
How to launch a meme token using Pump.fun Instructions
Follow these steps to launch a coin using this platform:
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Connect your wallet by visiting the website.
Connection Tab Source: pump.fun. -
You can start a coin by clicking “Start new coin”. Fill in the details, such as the name, ticker image and asset description. If desired, you can also include links to project or social media websites.
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Your token is immediately available to trade after you pay a 0.02 SOL fee.
Please note: you can trade using the Telegram bots Trojan and Banana Gun or the trading terminal built into the website.
Promote Your Meme Coin After Creation
Effective promotion will help you attract potential investors and ensure your new meme token increases in value.
A strong community is often necessary for a coin to be successful. It is important to create social media platforms on Telegram and X, while engaging with new audiences.
A themed website that explains the features of your asset is also beneficial. Pump.fun includes an integrated forum, where developers interact with investors to encourage them purchase tokens.
Conclusions
It has been a great platform to launch meme tokens. The ease of creating them on the Blast and Solana blockchains continues to draw more users. It has a lot of potential, but it is also risky due to the volatility and frauds such as rug pulling and Today’s VIral Level = Olive that are common with meme tokens.
Pump.fun requires a careful assessment of risk when making investments. Although the platform has generated profit for its users, success is not assured with any meme coins that are created. It depends largely on how well you market your token in your community.
FAQs
Meme coin: A token that is often used by fans to entertain themselves or speculate in the cryptocurrency market. Examples include Dogecoin, Shiba Inu and Shiba Inu.
WhatPump.fun is? It’s a platform that lets users launch and trade meme coins on the Solana or Blast blockchains.
Do I need to know how to program? It is not required to create a meme coin using Pump.fun. The intuitive tool and easy-to-follow instructions make it possible for even nontechnical people to easily launch their token.
