Meme coins have always been a hot spot and attract cash flow in the market, especially on Solana. Up to now, meme coins on Solana are still fertile ground with the influence of Pump.fun, a platform that supports creating meme coins to become easier and more accessible for everyone, thereby attracting fund flow into the ecosystem. Let’s learn about Pump.fun with Coincu through the article below.
Key Takeaways
– Pump.fun is a platform that provides a complete set of tools to help users create their own meme coin as desired without any programming knowledge.
– Pump.fun is currently a platform that attracts users, especially meme coin traders on Solana.
– The first buyer of any token launched on Pump.fun pays a small fee of 0.02 SOL for the creator.
How to Make a Coin on Pump.fun: Step-by-Step Guide
Step 1: Visit The Platform
Begin by navigating to Pump.fun and connecting your Solana wallet.
Step 2: Start a New Coin
Click on the [start a new coin] button to initiate the creation process. Here, you’ll provide essential details about your token:
- Token Name: Choose a catchy and memorable name.
- Token Ticker: Create a short, unique symbol for your token.
- Token Image: Upload an image to represent your coin visually.
You can also include descriptions to explain your token’s purpose, as well as links to your social media profiles. Adding this information enhances credibility and gives potential buyers more context about your project.
Step 3: Review and Launch
Before finalizing your token, carefully review all the details. Ensure the name, ticker, and description align with your vision. When you’re satisfied that everything is perfect, launch your meme coin. Once launch, you can sell your tokens whenever you’re ready.
Note: The first buyer of any token launched on Pump.fun pays a small fee of 0.02 SOL for you.
What is Pump.fun?
Pump.fun is a Solana-based platform that provides a full set of tools to help users create their own meme coins.
Typically, the release of any other meme token or related assets requires thorough knowledge regarding the smart contract, liquidity provision, and blockchain platform concerns. For these, Pump.fun automates the processes of such hindrances in entirety.
How Does Pump.fun Work?
Pump.fun simplifies the process of creating and trading meme coins by eliminating technical hurdles with a straightforward and user-friendly interface.
When purchasing tokens on Pump.fun, the process follows a bonding curve model. As more buyers join and the market capitalization reaches $69,000, the platform will contribute $12,000 of its liquidity to Raydium for burning. Additionally, the token’s creator receives a reward of 0.5 SOL once the milestone is achieved, offering an extra incentive for innovation.
Read more: Platforms Like Pump.fun With Profit Potential You Need to Know
Why Memecoin Traders Love Pump.fun
Meme coin traders often fall prey to rug pulls, which occur when the creators abandon a project and run off with funds invested in tokens.
Pump.fun tackles this problem by offering a fairer launch mechanism for meme coin projects. The main feature of the platform is that creators cannot pre-allocate tokens to themselves but have to buy them on equal terms with other buyers during the initial launch. The mechanism helps mitigate the risk of creators being able to unfairly benefit from the token distribution at the outset.
Note: This measure does not completely remove the possibility of a rug pull, it provides a more transparent and equitable platform for traders, with increased levels of trust and security in the early stages of meme coin launches.
Is Pump.fun Legit?
Pump.fun is a decentralized platform, so its legitimacy is highly debatable. The platform interface is easy for users to navigate, but its focus on meme coins, which are notorious for their extreme volatility and high risk of fraud, is concerning.
Read more: Protect Your Crypto Savings: Vital Tips You Can’t Afford To Miss!
What is a Bonding Curve?
Pump.fun relies on a bonding curve model for the pricing of tokens. This means that as demand increases, so does the price. The model is such that liquidity is adjusted automatically based on market interest, making sure that the pricing structure is fair.
Unlike traditional static pricing methods, this dynamic system prevents market manipulation and allows the token prices to accurately reflect the current demand.
Potential Challenges When Creating a New Coin
Pump.fun operates as a closed-source platform with closed APIs, its code is not publicly accessible for review, and it lacks transparency.
Although anyone can create coins on the platform, this has led to the rapid launch of numerous meme coins without oversight. Most tokens launched on this network experience rapid declines. They often fail soon after their release.
Did you know?
The platform’s security vulnerabilities came to light in May 2024 when a former employee exploited the system, resulting in a significant loss of around $2 million.
Recent Popular Tokens on The Platform
Peanut the Squirrel (PNUT)
PNUT is the Peanut the Squirrel project meme coin created on Pump.fun in memory of the poor squirrel Peanut.
Read more: Peanut the Squirrel: The Most Explosive Meme Coin In Solana Ecosystem
Goatseus Maximus (GOAT)
GOAT is an AI meme coin indirectly created from the Truth Terminal AI through the Pump.fun platform. This coin is rumoured by the community to be backed by the a16z investment fund.
Read more: GOAT Coin Review: Meme Coin Causes Excitement With Rumors of a16z Backing
Act I The AI Prophecy (ACT)
ACT is a meme coin that was created on the pump.fun platform to attract community attention and increase interactions for posts by the AI bot Act I: The AI Prophecy.
How Many Tokens Are Made on Pump.fun a Day?
According to the latest data from Dune, at the time of writing, over 32,000 tokens were launched in a day, and 325 tokens graduated within 24 hours.
Frequently Asked Questions
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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