Pump.fun What Is It? A Complete Guide for You to Create Your Own Meme Coin

What is Pump.fun and Why Is It Hot?

Pump.fun is a launchpad platform for (token) on the Solana blockchain, allowing anyone to create and distribute memecoins without coding knowledge. It’s like a democratized playground for those wanting to try creating their own coin.

Since its launch in January 2024, Pump.fun has quickly become one of the highest revenue (DeFi) decentralized applications. The numbers speak for themselves: the platform earns between $200,000 and $500,000 in fees daily. This explosion is not accidental but a result of it precisely meeting the crypto community’s needs during the memecoin boom.

Not limited to Solana, Pump.fun expanded to Ethereum Layer 2 networks like Base and Blast in April to reach more users.

Why Are People Crazy About Pump.fun?

Extremely low costs

To create a meme coin on Pump.fun, you only need about 0.02 SOL (equivalent to 3-4 USD). That’s a barrier so low that anyone can experiment. Compared to other platforms, this is a trivial amount. Additionally, each transaction on the platform only costs 1% fee – a relatively fair rate.

Almost instant deployment

The token you create will be ready for trading immediately. No approval waiting, no permissions needed. You create a coin -> it gets listed -> you start earning. This speed is a key success factor for Pump.fun.

Bonding Curve model – smart pricing tool

Pump.fun uses a Bonding Curve mechanism to automatically adjust token prices based on supply and demand. The more people buy, the higher the price follows a mathematical curve. This means early buyers benefit from lower prices, creating a self-balancing system.

When a token reaches a market cap of $69,000, the system automatically sends $12,000 worth of liquidity to Raydium DEX and burns it. This aims to enhance stability and prevent manipulation.

Anti-fraud protection mechanism

Pump.fun does not allow pre-sales or private allocations for the development team. Every launch is fair for all participants, significantly reducing the risk of “rug pull” (a scam where creators run away with the money).

Successful Memecoins on Pump.fun

To better understand the platform’s potential, consider some success stories:

Shark Cat (SC) – This memecoin achieved a market cap of $100 million immediately after launch. This reflects the power of an enthusiastic community and social media amplification.

Hobbes – Named after a cat of a famous Solana trader, this token hit a market cap of $35 million. Its success proves that a simple idea, well-promoted, can generate real value.

BaoBaoSol – The first successful token on Pump.fun that moved into Raydium liquidity pools, marking an important milestone in the platform’s history.

These successes are not exceptions. In Q1 2024, memecoins averaged a profit of 1,312%, attracting both retail investors and communities.

Detailed Guide: How to Create a Meme Coin on Pump.fun

Step 1: Prepare a Crypto Wallet

First, you need a compatible Solana wallet like Phantom or Solflare. Create one if you don’t have it, then ensure it contains enough SOL to pay transaction fees. SOL tokens can be bought from major exchanges and transferred into your wallet.

Step 2: Connect Your Wallet to Pump.fun

Visit the official Pump.fun website. Click the “Connect Wallet” button at the top right. The system will request confirmation from your wallet – just approve and connect.

Step 3: Create Your Meme Coin

Click “Start a new coin.” You will be asked to enter:

• Token name
• Ticker symbol
• Short description
• Logo image (logo)

After completing, pay the 0.02 SOL deployment fee. The token will be created and ready for trading within seconds.

Step 4: Manage Your Token Lifecycle

Once your token is launched, you can:

• Buy tokens: Browse available memecoins, select one to view price charts and transaction history
• Sell tokens: Use the Bonding Curve mechanism to set selling prices, allowing flexible profit-taking or stop-loss
• Track progress: When market cap approaches $69,000, prepare for the next step – moving to DEX

Step 5: Reach a Key Milestone

When your token’s market cap hits $69,000, Pump.fun will automatically send liquidity to Raydium and burn the remaining. This is a turning point – your token enters the larger DEX world, opening possibilities for listing on other exchanges, even major DEXs.

Why Does Pump.fun Create a Domino Effect?

Democratizing token creation

Previously, creating a token required smart contract knowledge, high fees, and waiting for audits. Pump.fun removes all these barriers. Anyone can create a memecoin – no degree, no technical experience, just an idea.

Real earning potential

Successful tokens on Pump.fun have proven this is not just a game. Hobbes and Shark Cat are not fake projects – they reached tens of millions USD in market cap. Creators and early buyers have genuinely made money.

FOMO effect (Fear of Missing Out)

When a memecoin succeeds, it sparks excitement in the community. People want to join the next one, creating a positive feedback loop for the platform. Pump.fun is a place where everyone can become a developer.

Risks You Need to Know

However, not everything is perfect. Pump.fun also carries dangers:

Extreme price volatility

Memecoins are notorious for instability. Prices can skyrocket 10x in hours but also plummet quickly, risking total loss. This is high-stakes gambling, not a safe investment.

Rug pulls still exist

Although Pump.fun has protective measures, scams are still possible. If a token isn’t carefully monitored, creators might exploit the system. In May 2024, Pump.fun suffered an attack by a former employee, causing about $2 million in damages.

Low liquidity

Many memecoins on Pump.fun face liquidity issues. Selling large amounts may force you to accept lower prices or even fail to sell.

Lack of transparency

Pump.fun operates with closed-source code. This can help prevent attacks but also means security flaws might go unnoticed until exploited.

Safety Measures of Pump.fun

To protect users, Pump.fun has implemented:

• Fair launches: No pre-sales, no insider allocations
• Liquidity burns: When market cap reaches certain thresholds, part of liquidity is burned to enhance stability
• No-code interface: Anyone can use it without understanding coding

Future Outlook for Pump.fun

Experts predict continued platform expansion, integration of new blockchains, improved security measures, and gamification tools to retain users. However, this growth will come with increasing regulatory challenges.

When working with Pump.fun to create memecoins, always remember: ease and low cost also mean higher risks. Do thorough research, manage risks wisely, and only invest what you can afford to lose.

Pump.fun has proven that the era of “democratizing” token creation has begun. Are you ready to join this revolution?