"Pump.fun is a Solana-native launchpad that makes launching a token as easy as a few clicks. New coins start on a bonding-curve contract, where around 800 million tokens are sold in sequence. Once that supply is bought out, the token graduates, and trading automatically shifts to an automated market maker (AMM). Today, that's Pump.fun's own decentralized exchange (DEX), PumpSwap (earlier launches migrated to Raydium)."
"For creators, the cost is minimal. There's no fee to mint, and graduation carries only a small, fixed charge of 0.015 Solana (SOL) deducted from the token's liquidity rather than as a separate payment. After graduation, PumpSwap burns the liquidity provider (LP) tokens linked to the trading pair, effectively locking liquidity so it can't be withdrawn manually. Funds can only move through regular trading activity. This design standardizes early price discovery for new memecoins while sharply reducing traditional rug-pull risks."
Pump.fun centralized a majority of Solana memecoin launches by combining one-click minting, bonding-curve graduations, and burning of LP tokens to lock liquidity. New tokens begin on a bonding-curve contract selling roughly 800 million tokens; once bought out the token graduates and trading shifts to an AMM, currently PumpSwap. Creators face minimal costs: no mint fee and a 0.015 SOL graduation charge taken from liquidity. Locked LPs prevent manual withdrawal, leaving funds movable only through trading and reducing rug-pull vectors. Graduation rates are low (~0.7–0.8% in July–August 2025). Competitors and cyclical fees can shift share, while security breaches and US litigation pose major durability risks.
Read at cointelegraph.com
Unable to calculate read time
Collection
[
|
...
]