Pump.fun has won $ 150 million in innovation driver or a high -risk gambling?

Author: Insights4vc Source: Substack Translation: Shan Ouba, Bitchain Vision World

MEME currency investment is one of the areas with the largest volatility and the highest risk in the cryptocurrency field. Extreme price fluctuations often lead to major financial risks.This article conducted an in -depth analysis of pump.fun. This is a special case that created a $ 150 million income in just three quarters.

Pump.fun uses people’s interest in the growing coin to provide tools and platforms for trading these assets to effectively provide necessary infrastructure during the period of demand.It solves common problems such as carpet pulling, honeypots and high standards. Users can create and manage the cause coins in a safer and inclusive ecosystem.

We explored the origin, operation and strategy of pump.fun, and analyzed how its innovative methods promote its rapid success and affect a wider range of cryptocurrencies.In addition, we also studied the platform’s role in realizing the democratization of MEME currency transactions and evaluated its sustainability in such a turbulent market.

Establishing and early development

The platform was developed at the end of 2023 and was officially launched in January 2024.Co -founderAlonandSapijijuAnd its team realized that the creation of traditional MEME coins requires a lot of technical expertise and financial investment.These requirements usually exclude ordinary users outside, which is conducive to those who have a lot of resources or malicious.

Pump.funFinancing insight -total financing: $ 350,000

The project was initially funded by its founders.On May 2, 2024, it won the Alliance DAO (qiao Wang and andImran khan) Support, August 1st, it obtained6th Man VenturesandBig brain holdingsFund.

Release strategy

In order to start Pump.fun, Alon sent private messages to more than 3,000 people on Twitter to interact directly with potential users.This grassroots method not only helps improve the exposure, but also understands market demand and user behavior in depth, thereby affecting subsequent product decisions.The team emphasizes the importance of user interaction and focuses on the establishment of a core user base. They will be the supporters of the platform.By cultivating a culture in this group, Pump.fun uses community participation as a key driving force for growth.

Pump.fun’s working principle

Pump.fun simplifies the creation and transactions of MEME currencies through the user -friendly platform built by the Solana blockchain.It eliminates technical complexity and financial obstacles and allows wider audiences to use it.

Step 1: Connect your wallet

The user first connects the wallet compatible with Solana to the Pump.fun platform.This wallet can promote interaction with the platform, including token creation and transactions.

Step 2: Create Meme Coin

• Simple tokens creation:The user represents the tokens by selecting a unique name, selecting a stock code, and uploading a JPEG image or video to define their tokens.

• Affordable coinage fee:Just pay the fee of 0.02 SOL (about $ 2), you can cast tokens and immediately add to the Pump.fun market for transactions.

Step 3: Combined curve pricing model

Pump.fun uses a combination curve mechanism to adjust the token price according to the supply and demand:

• Price adjustment:As more and more users buy tokens, the price will rise along the predefined curve to reward early buyers.

• Fair allocation:100 % tokens are sold through a joint curve to ensure that there is no unfair advantage.

• No initial liquidity:This model eliminates the needs of creators to provide initial liquidity and reduce financial obstacles.

Step 4: Trading MEME Coin

MEME coins on pump.fun can be traded on the platform:

• Sale:Users can buy token at any time according to the joint curve model.

• Basis and loss:Traders can lock profits or stop loss according to the market trend.

Step 5: Move to Raydium

Once the market value of the tokens reaches $ 69,000:

• Automatic migration:The token automatically relocated to the leading decentralized exchange Raydium on Solana.

• Liquidity supply:Save the liquidity of $ 12,000 into Raydium and burn liquid tokens to ensure permanentness.

• Improve visibility:Token obtains higher visibility and liquidity to open more transaction opportunities.

Koth function:KOTH features high -performance tokens, which attracts new buyers and potentially increases the value of the token by highlighting the successful cases on the platform.

Pump.fun By ensuring that all tokes are issued fairly (no pre -sale or team allocation), created unchanged unchanging non -transit currencies, and promoting transparency to prevent malicious activities and establish user trust, thereby promoting security and fairness.

Strategic method and platform development

• Quick iteration:Pump.fun uses the method of “fast delivery and breaking conventional” to quickly find the fit point between the product and the market and respond to user feedback.

• Reduce the threshold:The platform reduces the technical and financial threshold, allows more participants to issue tokens and promote tolerance.

• Trend adaptability:The simplicity of MEME coins and low costs of Solana enable them to quickly adapt to cultural trends and emerging causes.

• Focus on scalability:Pump.fun is turning to scalability, rewarding long -term innovation and promoting sustainable growth rather than short -term returns.

Key indicators (October 29, 2024)

Pump.fun official wallet address:CEBN5WGQ4JVEPVSVU4EOHEPGZQ1vv7abicfhtw4xc9im

Cumulative income:147 380 261 US dollars

Total number of tokens issued:2 655 232

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Goat token

The rise of $ Goat tokens (currently the largest Memecoin launched on pump.fun) began at a name called@truth_terminal artificial intelligence robotIt indirectly participated in its rapid rise. The robot was developed by Andy Ayrey and fine -tuned based on Meta’s Llama 3.1.On July 10, 2024, the robot won 50,000 from A16Z co -founder Marc AndreessenDollarBitcoin funding, To support its independent development.

On October 10, 2024, $ Goat Memecoin was launched on pump.fun.Soon after, October 13th,Ayrey clarified on XSaid that although artificial intelligence robots did not directly create the token, it endorsed it and greatly promoted its promotion.This endorsement triggered a large -scale rebound. By October 14, the market value of the token had risen to nearly $ 150 million.

As of October 24, the market value of $ Goat has soared to more than $ 850 million. The tokens became the first token to Pump.fun for futures transactions on the listing of futures in Binance and OKX.Ayrey further explained that the creation of $ Goat has no direct relationship with the AI ​​robot itself, emphasizing that the AI ​​model is not subject to the potential danger of regulatory real estate ideas.

Impact on the cryptocurrency market

As of October 24, 2024, Pump.fun’s cumulative revenue has exceeded $ 147 million, showing strong growth and market influence.The platform shows toughness and adaptability and contributes to its continued success.The platform has experienced a decline in early September, but at the same time as the Token49 Singapore Conference,Murad mahmudovovovI introduced at the meeting “Memecoin super cycle“The platform also ushered in recovery.

Continuous market dynamics

Pump.fun reduces the entry threshold, allows more people to create and transaction MEME coins, and at the same time accelerate the MEME cycle through real -time events.The platform promotes transparency and fairness by preventing pre -sale and opaque approach.Celebrity endorsements, such as the endorsements of Katelin Jenna and Iki Aceia, have increased their popularity and user participation, and contributed to their success.In terms of competition, after the launch of the TRON network in the TRON network in August 2024, Sunpump once surpassed Pump.fun in the token creation, providing creators with higher rewards, although this trend lasted only August and September.

The latest updates such as Solana’s Gulf Stream protocol have increased transaction speed and reduced memory demand.The protocol plays an important role in maintaining high performance, supporting high transaction volume and user activities in Pump.fun.

Another platform based on Solana, Moonshot, is very popular for focusing on security and audited smart contracts, which constitutes a challenge to Pump.fun, which has been criticized for lack of this aspect.During the peak of June, the number of tokens successfully created by Moonshot was only half of Pump.fun.Although the $ 1.9 million vulnerability that occurred in May 2024 affected its reputation, Pump.fun quickly recovered its vitality and is currently through the new token verification system to enhance security.Although Meme currency is usually considered speculative, Pump.fun advocates transparency, fair practices, and community participation to build trust.However, it must also move forward in a complex legal environment to ensure that it complies with securities and financial regulations in order to achieve long -term success.

Future development and characteristics

Pump.fun is trying to support the tokens outside the initial release stage:

• Elite promotion:The new features are based on the advantages rather than the initial hype to give priority to successful coins to ensure long -term value.

• Platform enhancement function:Pump Advanced Trading Terminal was launched in October 2024. It provides a one -stop view such as mini charts, top holders statistics and social activities. The cost of the first month is 0%.Users can now be token for videos, allowing their tokens to stand out and improve their participation.

Extension and user growth

Alon expects pump.fun will achieve a significant growth. He emphasizes:

• Continuous democracy:Further reduce the entry threshold and improve the user experience.

• Function development:Introduce social functions and other tools such as live broadcast to promote community participation.

• Global influence:Expand the platform’s attractiveness to a wider and potential non -encrypted native audience.

Potential tokens and airdrop plans

• Future tokens:The co -founder hinted at the future Pump.fun token plan.

• Airdroppot potential:According to the disclosure of Solanafloor on the X platform, there is a possibility of airdropping to platform users, which may be more beneficial to any other projects in this field.

In order to maintain a leading position, Pump.fun should consider enhancing security measures by implementing strong agreements and comprehensive tokens verification systems.By adapting to market fluctuations and launching new features, continuous innovation is essential for maintaining competitors such as Sunpump and Moonshot.Exploration of cross -chain functions with platforms such as SUI, TRON, and Ethereum can provide broader access to accessible and potential enhanced liquidity options.Understanding the needs of the community to understand the needs of user needs will help provide functions that meet the user’s interest in the changing market.The demand for a wider and attractive balance is also crucial to maintaining the unique cultural characteristics of the platform.

in conclusion

Pump.fun is a platform in the cryptocurrency ecosystem. It promotes the creation of MEME coins and reflects the cultural trend of the encrypted community.By reducing the entry threshold, it affects market dynamics and provides space for users to express.The platform operates in a highly speculative and volatile market, attracting users to the attention of speed and simplicity, but it also aroused concerns about fast participation and security -related risks.Challenges and events related to competitors highlight the inherent uncertainty in this dynamic environment.With the development of pump.fun, it may affect the field of MEME currency and may affect a wider practice in the encryption industry.Its method highlights the complexity of controlling decentralized finance, and innovation is intertwined with market instability and speculative behaviors.