How To Make A Meme Coin With Pump.fun On Solana?

ChainPlay

•

11 hours ago

Share :

From when Pump.fun was created in January 2024 to November, over 3.85 million memecoins have been created and launched on the platform. Since March 21st, 2024, Pump.fun made around $261,727,643 in fee revenue. Furthermore, it averages a trading volume of $4,120,821,750 every 14 days. Pump.fun was created to help users develop their own tokens at lower cost and technical expertise. Both beginners and experienced crypto traders can use this platform and this makes it better than similar platforms. 

Pump.fun is gaining massive traction in the crypto space, mainly because of the industry's new demand for memecoins. In this article, we will explore and discuss everything a user should know about Pump.fun and how it works. We will discuss the founders of this platform, their bonding curve technology, fees, and how to launch your own memecoins.

• Pump.fun uses a bonding curve model, where token prices increase as more tokens are bought, benefiting early buyers.
• Each token starts with an initial supply of 800 million tokens, and once a token's market cap reaches $69,000, liquidity is added to Raydium.
• Successful tokens may be listed on decentralized exchanges (DEXs) and eventually move to centralized exchanges (CEXs) for broader market reach.

What Is Pump.fun? 

Image from Pump.fun 

Pump.fun allows users to create their own tokens without requiring any coding skills and all these happen within minutes. It can also be described as a Solana-based marketplace where the generation and distribution of tokens take place. One of the unique features that makes this platform different from the rest is that it uses a bonding curve pricing model. The benefit is that the price of memecoins and other tokens on this platform are adjusted depending on their supply and demand. 

Within the short period of its launch, Pump.fun has achieved a lot of milestones. It was initially supporting only the Solana network but has expanded to Ethereum’s Layer 2 network Base by April. It is also important to note that Pump.fun is one of the most profitable crypto platforms created, reaching over $100 million in revenue and 50,000+ active participants by September 2024. The evaluation of this Solana marketplace is that its scam prevention mechanisms, low fees, and user-friendly interface contribute to its success. 

As of November 27th,2024, Pump.fun is now generating an average of over $3 million in fees daily.  Furthermore, a total of 3,952,878 tokens have been launched on this platform, with over 5,773,502 addresses created. 

Image from Dune.com 

Who Are The Founders Of Pump.fun?

Pump.fun was founded by a team whose leadership is unknown, just like the Satoshi Nakamoto of Bitcoin. It was established in January 2024 by a team led by a pseudonymous figure known as Alon. Another person named "Sapijiju,” is the co-founder of this platform, but there's no real identity associated with this person. 

Under the leadership of these two, Pump.fun had a security incident in May 2024 and this led to the misappropriation of about $1.9 million worth of SOL tokens.  Their bonding curve contract was targeted and the team said they have implemented protective security measures to prevent future occurrences. 

Is Pump.fun Legit?

Yes, several metrics and publicly verifiable records show Pump.fun is a legitimate platform with backing from several trusted organizations. Pump.fun was bootstrapped by early-stage venture firm Alliance DAO and their last funding round was on May 2, 2024. 

How Does Pump.fun Work?

To fully understand what is Pump.fun, learning how the platform works will be a good place to start. On their platform, a user can decide to just be a spectator of what is happening or participate in the token development and distribution process. 

Their user interface is very intuitive and it allows those who don't have any programming language to create and launch their own tokens. Pump.fun founder created it in a way that the technical complications of creating a memecoin are removed. 

On this platform, users are promised of getting a fair launch, where there are no pre-allocations and everyone has the same chance of getting a token at the same price. The bonding curve is another technical aspect of Pump.fun. Memecoins are usually purchased on a bonding curve at Pump.fun, where supply and demand determine the token price. 

It is also important to note that when the market capitalization of a token on Pump.fun hits a specified milestone ($69,000), liquidity is added to Raydium. This liquidity is usually about $12,000 and it is burned, and could potentially increase the price of the token. 

Image from Dune.com 

Pump.fun Bonding Curve

The bonding curve model used by Pump.fun is a distinctive approach to token pricing, offering a dynamic and transparent system for memecoins. When a token is created, an initial supply of 800 million tokens is placed into the bonding curve. This setup allows token prices to be determined by the curve’s shape, rather than fixed values, ensuring that the price evolves with market demand. Early adopters benefit from lower prices, incentivizing early participation and engagement in newly launched tokens.

As users purchase tokens, the bonding curve adjusts the price exponentially. This means that the more tokens are bought, the higher the price rises along the curve, creating a self-regulating mechanism. This model rewards early buyers while maintaining fair market conditions by aligning token value with demand. Conversely, selling tokens decreases their price, offering flexibility for users to trade based on market sentiment. The bonding curve ensures liquidity is always available, preventing scenarios where buyers or sellers are stuck without counterparties.

A unique aspect of Pump.fun’s bonding curve model is its liquidity provision mechanism. When a token’s market cap reaches $69,000, liquidity is automatically added to Raydium, a leading decentralized exchange (DEX) on the Solana blockchain. This move enhances the token’s market stability and increases its accessibility to a broader trading audience. As memecoins gain traction, they often progress from DEX listings to more prominent centralized exchanges (CEXs), opening up further growth opportunities and wider market exposure.

Pump.fun Fees

Pump.fun fees are very affordable for memecoin developers, making it easy for users to create and trade memecoins. The platform charges a flat fee of 0.02 SOL (approximately $3) to launch a token. The benefit is that this provides an opportunity for anyone to experiment with their own memecoin without significant financial costs. 

In addition to the token launch fee, Pump.fun applies a 1% transaction fee on all trades. Compared to many other platforms, this fee is relatively low, making trading more cost-effective for users. Whether buying or selling memecoins, the modest fee helps keep expenses in check while ensuring the platform remains financially sustainable. 

Furthermore, the platform’s efficiency is improved by its integration with the Solana blockchain. Solana’s innovative combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms enable it to process over 65,000 transactions per second (TPS). This high throughput ensures fast, near-instantaneous transactions, a critical feature for users engaged in frequent trading at Pump.fun. Additionally, with an average transaction fee of just $0.00025, Solana offers a scalable, low-cost solution. This perfectly complements Pump.fun’s main objective of making memecoin creation and trading accessible to all.

Image from Dune.com 

How To Launch A Meme Coin On Pump.fun? 

Creating memecoins has become easier than ever with Pump.fun, a platform that operates on the Solana blockchain, leveraging a bonding curve model to manage token prices. If you're wondering how to make a memecoin on Solana, follow this simple step-by-step guide:

Step 1: Connect Your Wallet

Visit the Pump.fun crypto platform and connect a Solana-compatible wallet like Phantom or Solflare. To do this, click the wallet connect button at the top-right corner of the homepage and follow the prompts to link your web3 wallet securely.

Note: make sure you have enough SOL tokens to cover the fees required by Pump.fun for launching your memecoin. SOL tokens can be purchased from exchanges and transferred to your preferred crypto wallet.

Step 2: Create a Memecoin

To create a memecoin, click on "Start a new coin" on the Pump.fun homepage. You’ll be prompted to enter the following details:

Token Name

Ticker Symbol

Description

Token Image

A small fee of approximately 0.02 SOL is required to deploy your token on the Solana network. This quick and affordable process makes creating a memecoin on Solana via Pump.fun accessible to anyone.

Step 3: Buy Meme Tokens on Pump.fun

Once your token is live, or if you're interested in other memecoins, browse the homepage grid showcasing available tokens. Click on any token to view its price chart, comments, and recent trades.

Step 4: Sell Your Memecoins

Selling tokens on Pump.fun is just as simple as buying them. Use the same interface to sell your tokens, with the bonding curve determining the selling price based on current demand. 

Step 5: Achieve Market Cap Milestones

When your memecoin reaches a market cap of $69,000, Pump.fun introduces additional liquidity stability measures:

$12,000 worth of liquidity is deposited into Raydium, a decentralized exchange on Solana. The corresponding liquidity provider tokens are burned, preventing market manipulation and enhancing long-term stability.

FAQs

What Is Pump.Fun?

Pump.fun is a cryptocurrency platform launched in January 2024, designed for the creation and trading of memecoins. It operates on the Solana and Base networks, providing fast transactions and low fees. The platform allows users to deploy tokens instantly without requiring seed liquidity, making it accessible and cost-effective.

How Does Token Creation Work On Pump.Fun?

Token creation on Pump.fun is simple and instant. Users can specify the token's name, ticker, and image, with creation costs under $2. The platform employs a bonding curve pricing model where token prices rise as demand increases, encouraging early adoption and trading activity.

What Security Measures Are In Place On Pump.Fun?

After a security breach in May 2024 involving a former employee who exploited flash loans to manipulate bonding curve contracts, Pump.fun strengthened its security protocols. The platform redeployed contracts and partnered with top security experts to prevent future incidents. To regain user trust, Pump.fun offered zero-fee trading for a week and compensated affected users.

Which Networks Are Supported By Pump.Fun?

Pump.fun supports transactions on both the Solana and Ethereum Layer 2 network, Blast. This multi-network support ensures fast, low-cost transactions, enhancing the overall user experience and making memecoin trading seamless.

What Are Some Notable Memecoins Created On Pump.Fun?

Michi ($michi), inspired by an internet-famous cat, reached a peak market cap of $339.82 million. Shark Cat ($SC), based on the viral image of a kitten named Nala in a shark costume, hit a $385 million market cap. Mother Iggy ($MOTHER), created by rapper Iggy Azalea, achieved a $264 million market cap, with plans for real-world applications in telecommunications.