pump.fun is a platform that empowers users to create, launch, and trade their own cryptocurrencies. The process is remarkably simple, requiring only a name, ticker symbol, JPG image, and a brief description. Users can experience pump.fun for a nominal fee of around $2 USD. However, the platform lacks a project vetting process prior to listing. Consequently, the majority of cryptocurrencies generated on pump.fun are meme coins or shitcoins, lacking inherent value.
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Initially supporting token launches on the Solana blockchain, pump.fun has since expanded its compatibility to include the Blast network.
How to Create a Cryptocurrency on pump.fun
pump.fun operates on a model that allows users to create and trade coins without any coding knowledge or undergoing project evaluations. Furthermore, coin trading on pump.fun utilizes a Bonding Curve model.
For a more in-depth understanding of pump.fun’s operational model, refer to this analysis: Analyzing pump.fun – The Meme Coin Launchpad.
To launch a token on pump.fun, users need to follow these steps:
- Connect a cryptocurrency wallet.
- Fill in the required information: token name, ticker symbol, description, and a JPG image.
- Click “create” to generate the coin.
Note: Users need approximately 0.02 SOL (around $2-3 USD) to cover transaction fees.
After the coin is launched, users can leverage the livestream feature to promote their project and foster community engagement:
- On the toolbar, select the “Livestream” feature located to the right of the coin’s price chart.
- Click “Start Livestream” to begin broadcasting and interact with the community.
pump.fun’s Notable Achievements
Launched in February 2024, pump.fun quickly gained traction, achieving significant milestones within a few months:
- According to Defillama, the platform generated $330 million USD in revenue from transaction fees.
- Total transactions surpassed 1.5 million, with daily transactions increasing from 21 to over 15,000 (data updated as of August 7, 2024, by Dune).
- The market capitalization of some meme coin projects on pump.fun reached $35-100 million USD, with notable examples like BaoBaoSol, Shark Cat, and TEST.
Controversies Surrounding pump.fun
Despite its impressive metrics, pump.fun experienced a significant security breach on May 16, 2024.
According to the project’s official X (formerly Twitter) announcement, a former employee exploited a system vulnerability to gain administrative access and execute a flash loan attack. The attacker withdrew a substantial amount of SOL tokens, estimated at $1.9 million USD, from liquidity pools.
This incident forced the platform to temporarily halt trading and implement system upgrades. To compensate affected users, pump.fun reimbursed an equivalent or greater amount of SOL and offered seven days of free trading. The platform also provides a livestreaming tool to facilitate direct interaction between coin creators and their communities. However, this feature has been misused in some instances, with creators promoting sensitive or misleading information to garner attention. This can lead to short-term token price volatility and create a less-than-professional experience for investors.
The Team Behind pump.fun
pump.fun maintains a degree of anonymity regarding its development team. However, according to available information, the X account @a1lon9 is believed to be associated with one of the project’s core members. For further insights into the landscape of meme coin creation platforms, we recommend reading: The Truth Behind Meme Maker Platforms.