Network culture and memes have always played an important role in the cryptocurrency market. However, due to the high-risk nature of meme coins, most investors rarely profit from them and instead are prone to significant losses. This situation has made value investment in the meme market unreliable and led to excessive speculation.
However, the inherent traffic properties of memes have already become an indispensable part of the development of public chains. Therefore, maintaining fairness in the meme market has become an important topic in this bull market. As the largest meme launch platform in the Solana ecosystem, Pump.fun has recently attracted widespread attention in the market. Pump.fun continues the narrative of fairness by supporting users to deploy and issue tokens at a very low cost (0.02 SOL) without any development experience. Since its launch in January, Pump.fun has issued over 460,000 tokens. The rise of Pump.fun has also led the meme coin track into a new phase of “everyone issuing coins.”
Pump.fun is a token issuance tool and community platform focused on meme coins. It was launched on Solana in January 2024 and shortly after its mainnet launch, it added support for Ethereum L2 Blast. Pump.fun provides users with a simple and low-cost way to deploy and issue tokens by simplifying the token issuance process and reducing technical barriers. Users only need to pay a fee of 0.02 SOL and can easily use the platform without any development experience.
This simplicity and low cost have made Pump.fun quickly popular and achieved significant achievements in a short period of time. In the past 10 days, Pump.fun’s trading volume has shown a parabolic growth trend, creating nearly 50% of total revenue. Currently, the platform’s daily revenue remains above $450,000, with no signs of decline.
Users can currently choose to use Blast or Solana on Pump.fun. From there, the launch process is very simple. Users only need to click “start a new coin” and enter the name, code, description, and brand image, and pay 0.02 SOL to initiate a token “fundraising” issuance process. The entire process is very simple, and users do not need to adjust settings such as issuance quantity and token ownership, making it very user-friendly even for those with low professional knowledge.
After creating a new coin, the token will be launched along the unified curve on the Pump.fun platform. The unified curve is a mathematical curve that determines the token price based on the supply. As more tokens are purchased, the token price usually rises. Anyone can buy and sell on the platform, and when the total market value of the token reaches $69,000, the liquidity of the unified curve will be deposited into Raydium and burned.
After the token’s liquidity is deposited and burned, users can purchase it through the Solana decentralized exchange Raydium or their preferred Telegram bot and web application terminal to obtain more liquidity. Once this point is reached, the newly issued coin from Pump.fun will look like any other token, and at this point, the issuance of the new coin is successful.
Pump.fun has the following features:
1. Extremely low issuance cost: Anyone can deploy their own meme token on Pump.fun for less than $2.
2. No need to provide liquidity: Pump.fun does not require a large amount of liquidity to be provided for newly issued tokens. The system will automatically establish an initial liquidity pool (about $60,000) on the DEX.
3. Automated process: Once the market value of the new token reaches $60,000, all buying funds will be automatically injected into the liquidity pool and trading will be launched on Rayium Swap.
4. Abandonment of minting rights: The creator relinquishes minting rights when deploying the token, and all tokens are fully issued at the time of creation.
5. Fair distribution: Since the creator cannot reserve tokens, all tokens enter the open market at the time of creation without hidden wallets.
6. High risk, high return: Meme token prices on Pump.fun are highly volatile, and there is a significant risk of pump and dump, but there is also the potential for high returns.
Pump.fun has become popular across the entire internet due to its combination of fairness and risk. With the increasing interest in network culture and meme coins, many investors are eager to launch their own tokens but often lack the technical knowledge required to create good tokens. As a result, the issuance of meme tokens has long been monopolized by institutions with professional technical knowledge and strong capital, making it difficult for ordinary users to participate.
In addition, the frequent occurrence of scams, rug pulls, and early scientist exits in the meme market has made the entire market unfriendly to ordinary investors. Recently, the BOME token brought the “Meme presale frenzy” mode, which became a new way to harvest retail investors in just a week. Most presale projects on the market have experienced rug pulls, such as the Avalanche fundraising project Sener, which transferred a large amount of AVAX after raising about 93,000 AVAX (about $4.8 million), and the project token SENDER only had a slight increase in its opening price before entering a full-scale sell-off phase.
The lack of transparency and fairness has made the meme market full of various risks. However, the potential for huge profits in the cryptocurrency industry has not diminished investors’ enthusiasm for meme coins. In order to maintain the prosperous development of the market, there is an urgent need for a meme issuance platform similar to Birdeye but more focused on fairness. Pump.fun happens to meet the needs of meme enthusiasts.
In terms of fairness, Pump.fun meets the needs of ordinary investors to enter the market with extremely low issuance costs. It also simplifies the entire token issuance process by commercializing memes, making the entire issuance process more open and transparent.
The creator automatically relinquishes minting rights when deploying the token, which means that Pump.fun’s token will have no nominal project party or manager, and therefore will not have RUG problems caused by super permissions.
Furthermore, Pump.fun improves the fairness of the platform by eliminating the creator’s intervention in the token issuance process. The liquidity on the platform is artificially created and operates on the unified curve reserved by the platform. Once Pump.fun tokens are listed on Raydium, liquidity will be automatically burned, locking in AMM liquidity. This means that even as a project creator, one cannot stop this process from happening.
In addition, compared to traditional token issuance platforms, Pump.fun combines token issuance with social attributes, making it an innovation. When creating a token on Pump.fun, in addition to the token’s name, an image and description are required, and it has a comment function. This gives it the ability to quickly and intuitively spread the story and style behind it. In addition, Pump.fun also has a messaging board-like feature where users can leave messages and communicate with each other.
Due to its combination of fairness, transparency, and social attributes, Pump.fun has become popular in the entire cryptocurrency industry. In less than three months after its launch, Pump.fun has become the most traffic-generating Memecoin platform in the Solana ecosystem. According to DeFiLlama data, Pump.fun’s total fees in the past seven days have exceeded $3 million. It is worth noting that Pump.fun set a new record on May 7th, with daily fees exceeding $752,000, making it the highest-revenue application in the Solana ecosystem.
Pump.fun was initially conceived to maintain fairness in the meme market. As a new project, Pump.fun does indeed achieve greater fairness and transparency than traditional platforms. However, in the cryptocurrency industry, the higher the profit, the greater the risk. Some of Pump.fun’s rules have also been exploited by malicious actors to become tools for harvesting others.
Pump.fun lowers the barrier to token issuance, allowing ordinary investors to participate in the token issuance market. As a result, more than 10,000 tokens are issued every day, but the vast majority of them are junk tokens. For investors, it is not easy to find valuable tokens with potential among the many junk tokens because there is very limited information available and they can only rely on social information of the project, such as the messaging board or token information, to judge their quality.
Unfortunately, these social information can be easily manipulated. Ordinary investors are often more inclined to believe and purchase tokens created or endorsed by well-known figures. However, they may not realize that these well-known figures may be impersonated by someone using an account with a high number of followers, creating a false sense of high attention. These individuals buy a large number of tokens at the early stage and then quickly sell them when users are deceived by the illusion of high attention, leading to a rapid exit. Similarly, some well-known figures may use their influence to create new tokens and quickly monetize their influence through extreme price curves (harvesting).
For example, TEST was the first meme token deployed on Pump.fun and was created by the development team. Early buyers took advantage of tools to purchase nearly 50% of the supply, causing the price to skyrocket. However, holders began selling off, causing the price of TEST to plummet and many latecomers to be harvested. There is also BERT, which increased tenfold within the first 15 minutes of trading but subsequently experienced a severe pump and dump, resulting in a significant price drop.
The fairness of Pump.fun allows every user to have the opportunity to participate, but it also carries a significant gambling element. Users who make the right bets can see their investment multiply hundreds of times within a day, but if they are wrong, they can become victims of harvesting. Compared to other meme issuance platforms, Pump.fun feels more like a gambling platform, and even professional poker player Tom Dwan mentioned Pump.fun in a tweet, implying his interest in Pump.fun’s gambling entertainment.
The popularity of Pump.fun has also sparked a frenzy of everyone issuing tokens. In the past two weeks, an average of 14,000 new tokens have been issued on the Solana network, with the majority coming from Pump.fun. Pump.fun has created 10,000 meme coins every day for six consecutive days, demonstrating its enormous potential in the meme market. Additionally, the Base chain has listed over 2,000 trading pairs for multiple days. Pump.fun’s success as a one-click token issuance tool signifies the entry of the meme coin market into a new phase of “everyone issuing coins.” Currently, there are several other popular meme issuance platforms apart from Pump.fun.
We.Rich: We.Rich is a UGA (User-Generated Asset) platform that allows anyone to launch meme tokens without LP (liquidity pool) through a one-click process. Building on the foundation of Pump.fun, We.Rich has added more features and optimized the user interface. For example, it keeps the token price extremely low during the initial fair distribution phase and introduces limited minting functionality. However, We.Rich lacks information about assets and social attributes. Although there is still a significant gap in terms of issuance quantity and active users compared to Pump.fun, this project’s emergence as part of the Base chain, which also has a massive meme market, adds a new competitor to Pump.fun in the meme coin battlefield.
Rug.fun: Rug.fun is another meme coin issuance platform on the Base chain, similar to Pump.fun in terms of its model. Anyone can issue tokens on this platform. However, in terms of rules, Rug.fun is more radical and has a stronger gambling element compared to Pump.fun.
Rug.fun’s token issuance rules are divided into two stages. The first stage is the creation of tokens, where anyone can create tokens within a 12-hour period. After the deadline, only the top 10 tokens with high liquidity enter the second stage, while the eliminated tokens will have their purchase funds refunded. The second stage is the competition among the top 10 tokens, which lasts for 12 hours. Only the first and tenth tokens remain after this period. The holders of these two tokens will share the liquidity funds of the second to ninth tokens, each receiving a 50% share. Additionally, each token purchase generates a tax, which increases over time, and the winners also have the opportunity to share the tax revenue. The final winning token will qualify for listing on a decentralized exchange (DEX).
Friend.tech: Friend.tech is a decentralized social platform that released the Friend.tech V2 version in March 2024, introducing the Club feature. On Friend.tech and Club, anyone can create abuse-proof and 100% secure tokens with the click of a button.
Once a token is created, it will have unified curve characteristics. This means there is a correlation between the token’s supply and price. As the supply increases, the price rises, incentivizing people to hold and participate. Since this is a decentralized social platform, the created tokens will link the creator and holders to social connections, tied to their reputation on the internet and blockchain. This will bring more responsibility and motivation to the creators to ensure the success of the project.
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Tags:
Blast
fun
MEME
Pump.fun
SOL
Solana
Ethereum
Source Link:
https://news.marsbit.cc/20240514162814381133.html
Disclaimer: The views expressed in this article are solely those of the author and do not constitute investment advice.
Original Article Link: https://www.bitpush.news/articles/6726294
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