2024-07-30
Pump.fun is a memecoin creating and
trading platform on the Solana and Blast blockchains.
Pump.fun takes a 0.5% fee on each
trade. However, the fee is calculated before any slippage, so the actual fee
amount might not be exactly 0.5%.
Launched in early 2023, it offers a
simplified process for deploying tokens that can be traded immediately without
needing to seed liquidity. This ease of use has made it popular.
It allows instantly
tradable tokens. Users can create and launch new tokens quickly. These tokens
are instantly tradable.
Its bonding curve
model adjusts liquidity based on demand, ensuring dynamic pricing for tokens.
This helps maintain market stability and provides an alternative approach to
traditional liquidity provision.
Pump.fun also provides safety
mechanisms. Pump.fun incorporates protections against rug pulls, a common scam
in the crypto world where developers abandon a project and take investors'
money. Tokens on Pump.fun undergo fair launches with no pre-sale or team
allocation, reducing the risk of such scams.
Creating a token on Pump.fun costs
around $2, making it accessible for a wide range of users. The platform also
generates revenue through a 1% swap fee on trades and charges 2 SOL when tokens
gain enough liquidity for listing on decentralized exchanges like Raydium.
Pump.fun’s daily transaction fees
July 15, 2024, $1.71 million
July 20, 2024, $903.86k
July 22, 2024, $971.98k
July 28, 2024, $864.53k
July 29, 2024, $867.43k
Pump.fun generates revenue from fees.
Since May 15, 2024, Pump.fun has been
generating nearly $1 million fee everyday (between $800k and $1 million).
There are high risks associated with
pump-and-dump schemes. Users are advised to exercise caution and thoroughly
research before participating.
