The Meme Coin Market Welcomes New Changes: The Arrival and Challenges of the Era of Issuing Coins for All

Internet culture and memes have always played an important role in the crypto market. However, the high-risk nature of meme coins makes it difficult for most investors to profit, and they are more likely to suffer significant losses. This situation has made value investing in the meme market unreliable, with excessive speculative trading.

Nonetheless, the traffic attribute inherent in Meme has become an indispensable part of public chain development. Therefore, how to maintain the fairness of the Meme market has become an important topic in this bull market. As the largest Meme launching platform in the Solana ecosystem, Pump.fun has recently attracted widespread attention in the market. The platform continues the narrative of fairness, allowing users to deploy and issue tokens at a very low cost (0.02 SOL) without any development experience. Since its launch in January this year, Pump.fun has issued over 460,000 tokens, leading the Meme coin track into a new stage of "mass coin issuance."

Pump.fun: The Pioneer in Simplifying the Coin Issuance Process

Pump.fun is a coin issuance tool and community platform focused on Meme coins. It was launched on Solana in January 2024 and soon after the mainnet went live, it added support for Ethereum L2 Blast. By simplifying the coin issuance process and lowering technical barriers, Pump.fun provides users with a simple and low-cost way to deploy and issue tokens. Users only need to pay a fee of 0.02 SOL and can easily use the platform without any development experience.

This simplification and low-cost feature has made Pump.fun rapidly popular and achieve significant success in a short period of time. In the past 10 days, Pump.fun's trading volume has shown a parabolic growth trend, resulting in nearly a 50% increase in total revenue. Currently, the platform's daily earnings remain above $450,000, with no signs of decline.

Pump.fun issue coin process and features

Users can choose to issue coins using Blast or Solana. The process of issuing coins is very simple; just click "Start a New Coin" and enter the name, code, description, and brand image, then pay 0.02 SOL to initiate the "fundraising" issuance process for the token. The entire process requires very little expertise and can be operated by ordinary people.

After creating the new coin, the token will launch along the joint curve on the platform. As more tokens are purchased, the price typically rises. When the total market value of the tokens reaches $69,000, the liquidity of the joint curve will be deposited into a certain DEX and burned. After that, users can purchase it through the DEX or their preferred Telegram bot and web application terminal to gain more liquidity.

The main features of Pump.fun include:

1. Extremely low issue coin cost: Anyone can deploy their own Meme coin for less than $2.
2. No need to seed liquidity: the system will automatically establish an initial liquidity pool (approximately $60,000) for the newly issued tokens on the DEX.
3. Automation Process: Once the market value of the new coin reaches $60,000, the system will automatically inject all buying funds into the liquidity pool and launch trading on a certain DEX.
4. Abandoning the minting rights: The creator has given up the minting rights when deploying the token, and all tokens are issued at the time of creation.
5. Fair Distribution: Since the creators cannot reserve coins, all coins enter the public market at the time of creation, with no hidden wallets.
6. High Risk High Reward: The prices of Meme coins on Pump.fun fluctuate wildly, with serious PUMP&DUMP phenomena, presenting high risks but also the potential for high returns.

Success Factors and Market Impact of Pump.fun

With the rapid increase in interest in internet culture and Meme coins, many investors are eager to launch their own coins, but often lack the technical knowledge required to create a good coin. For a long time, the issuance of Meme coins has been monopolized by institutions with professional technical knowledge and strong capital, making it difficult for ordinary users to participate.

In addition, the frequent issues of insider trading, RUG, and scientists jumping the queue in the Meme market have made the entire market unfriendly to ordinary investors. The "Meme presale frenzy" model, which was popularized by BOME a while ago, became a new method to harvest retail investors just a week later. Now, most presale projects on the market have experienced RUG phenomena.

The lack of transparency and fairness has filled the Meme market with various risks. However, the hundred-fold wealth code continues to keep investors and the community passionate about Meme coins. To maintain the prosperous development of the market, there is an urgent need for a Meme issue coin platform that emphasizes fairness. Pump.fun just happens to meet the needs of Meme enthusiasts.

In terms of fairness, Pump.fun meets the needs of ordinary investors to enter the market through extremely low issue coin costs, while simplifying the entire issue coin process by productizing Meme, making the issue coin process more open and transparent. Creators automatically give up their minting rights when deploying tokens, which also means that Pump.fun's tokens will not have nominal project parties and managers, thus preventing RUG issues caused by super permissions.

Secondly, Pump.fun also enhances the fairness of the platform by eliminating the creator's intervention in the issue coin process. The liquidity on the platform is artificially created and operates on the joint curve retained by the platform. Once the Pump.fun token is listed on a DEX, the liquidity will automatically burn, thus locking the AMM liquidity. This means that even as a project creator, one cannot stop this process from proceeding.

In addition, compared to traditional issue coin platforms, Pump.fun not only has a fairer issue coin model but also combines issue coin with social attributes, making it a significant innovation. When creating a token, in addition to the token's name, an image and description must also be attached, along with a comment function. This gives it the ability to quickly and intuitively convey the backstory and style. Furthermore, the platform also has a bulletin board-like feature where users can leave messages and communicate with each other.

Due to its fairness, transparency, and social attributes, Pump.fun has taken the entire cryptocurrency industry by storm, becoming the most popular Memecoin platform in the Solana ecosystem in less than three months since its launch. According to data from a certain data platform, the total transaction fees of Pump.fun in the past seven days have exceeded $3 million. Notably, Pump.fun set a historical high on May 7, with daily transaction fees exceeding $752,000, making it the highest-grossing application in the Solana ecosystem.

Pump.fun: Fairness and Risk Coexist

The initial concept of Pump.fun was to maintain fairness in the Meme market. As a new project, Pump.fun has indeed achieved a level of fairness and transparency greater than traditional platforms. However, in the crypto industry, where profits are high, risks are often greater. Some of Pump.fun's rules have also been exploited by malicious individuals, becoming tools for harvesting others.

Pump.fun has lowered the threshold for issuing coins, allowing ordinary investors to participate in the coin issuance market. As a result, the daily issuance of coins exceeds 10,000, but the vast majority are junk coins. For investors, it is not easy to find valuable coins with potential among many junk coins, because the information available for reference is very limited, and they can only rely on social information about the project, such as message boards or token information, to assess their quality.

Unfortunately, this social information can be easily fabricated. Ordinary investors are often more inclined to believe and purchase a token when they see it created or followed by some well-known figures. However, they may not realize that these well-known figures could be fabricated by others using high-follower accounts, creating a false appearance of high attention. These individuals buy a large amount of bottom chips in the early stages of the token, and then wait for users to be misled by the illusion of high attention before quickly selling and exiting. Similarly, some well-known figures may also use their influence to create new tokens and then rapidly monetize their influence (harvest) through extreme price curves.

For example: TEST is the first Meme coin deployed on Pump.fun, created by the development team. Early buyers used tools to purchase nearly 50% of the supply, leading to a sharp price increase. However, holders subsequently sold off, causing TEST's price to plummet significantly, resulting in many latecomers being harvested. There’s also BERT, which increased tenfold within 15 minutes of opening, but then experienced severe PUMP & DUMP phenomena that led to a price crash.

The fairness of Pump.fun allows every user to have the opportunity to place bets, but the gambling nature is too high. Users who bet correctly may multiply their investment by hundreds within a day, but those who bet incorrectly may become victims of being harvested. Compared to Meme issue coin platforms, Pump.fun feels more like a gambling platform. There are even professional poker players from the United States mentioning Pump.fun on social media, implying their interest in its gambling entertainment.

Pump.fun Sparks National Coin Issuance Craze

The popularity of Pump.fun has also sparked a nationwide trend of issuing coins. In the past two weeks, the Solana network has issued an average of 14,000 new tokens per day, most of which come from Pump.fun. Pump.fun has created 10,000 new Meme coins every day for six consecutive days, demonstrating its enormous potential in the Meme market. Additionally, the Base chain has also launched over 2,000 trading pairs for multiple days. The explosive popularity of one-click issuing tools represented by Pump.fun also indicates that the Meme coin sector is about to enter a new stage of "national coin issuance." Currently, in addition to Pump.fun, there are several other popular Meme coin issuance platforms.

We.rich

We.Rich is a UGA (User Generated Asset) platform that allows anyone to launch Meme tokens without LP (liquidity pool) with one click. Based on Pump.fun, We.Rich has added more features and optimized the user interface. For example, it maintains a very low token price during the initial fair issuance phase and has a limited Mint feature. However, We.Rich has shortcomings in asset information and lacks social attributes. Although its issuance volume and active users are still significantly lower compared to Pump.fun, the emergence of this project introduces a new competitor for Pump.fun in the Meme coin battlefield, particularly for the Base chain, which also has a large Meme market.

Rug.fun

Rug.fun is another meme coin issuance platform on the Base chain, which is somewhat similar to Pump.fun in terms of model, allowing anyone to issue coins on this platform. However, in terms of rules, Rug.fun is more aggressive and has a stronger gambling nature compared to Pump.fun.

The issuing rules of Rug.fun are divided into two phases. The first phase is the creation of tokens, where anyone can create tokens within a continuous period of 12 hours. After the deadline, only the top 10 tokens with high liquidity enter the second phase, while the eliminated tokens will have their purchase funds returned. The second phase is a competition among the top 10 tokens, lasting 12 hours, after which only the 1st and 10th tokens win. The holders of these two tokens will share all the liquidity funds of the 2nd to 9th tokens, each receiving 50% of the share. In addition, every token purchase will incur taxes, which gradually increase over time.