Pump.fun - Memecoin Madness
Pump.fun enables anyone to launch a Solana memecoin at zero cost, which has led to a massive surge in memecoin launches. Solana has been dubbed the "memecoin chain", but we consider if this is warranted and whether traders should even get involved.
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TLDR
- Solana has been dubbed the “memecoin chain” due to the rise of Pump.fun (Pump).
- Pump enables any DeFi user to launch their own memecoin at zero cost. Newly launched coins trade on a bonding curve until a market cap of 69k is reached, after which the memecoin is deployed on a DEX (Raydium) with 12k initial liquidity.
- Pump’s success as a platform is proven by its incredible stats, with cumulative revenue nearing $100m since its launch in January.
- Since the beginning of the year, Pump users have launched 1,829,747 memecoins, a figure many believe demonstrates the unserious nature of Solana DeFi.
- The issues presented by Pump’s statistical success do not present any new issue for crypto – altcoin proliferation has long been overwhelming relatively modest capital inflow, and we outline how traders should adjust to this new regime.
