Pump.fun is a cryptocurrency platform for creating and trading memecoins. Launched in January 2024, it uses the Solana and Blast networks for fast and low-fee transactions.^[1]

Overview

Pump.fun is a cryptocurrency platform launched in January 2024, focusing on the creation and trading of memecoins. It leverages the Solana and Blast networks to offer rapid transactions and minimal fees. The platform allows users to create and trade tokens instantly without the need for seed liquidity, making it accessible and cost-effective for a broad audience.^[1]

On July 1, 2024, Pump.fun’s cumulative revenue crossed $50 million according to DefiLlama data. As of July 2024, over 1.18 million memecoins have been deployed via pump.fun, according to data from Dune Analytics. ^[12][13]

Key Features

• Instant Token Creation: Users can create and launch new tokens with a few clicks, specifying the token's name, ticker, and image.

• Bonding Curve Pricing: The platform employs a bonding curve model, where token prices increase as more tokens are purchased.

• No Presales or Team Allocations: To mitigate the risk of rug pulls, every token on Pump.fun is launched fairly without presales or team allocations.

• Low Cost: Creating a token costs less than $2, making it affordable for individual users and small groups. ^[3]

Pump.fun operates by allowing users to deploy tokens that are immediately tradable. The platform supports transactions on both Solana and the Ethereum Layer 2 network, Blast. When a token's market capitalization reaches a certain threshold, liquidity is deposited to a decentralized exchange and burned to ensure stability and trust.

Creating a token on Pump.fun incurs a minimal cost of under $2. This low barrier to entry encourages widespread participation and experimentation in the creation of memecoins. ^[2]

After deployment, tokens can be traded on Pump.fun using its bonding curve system. As the number of tokens purchased increases, so does the price, encouraging early adoption and trading activity. Liquidity management and price stability are achieved through automatic mechanisms once the market capitalization target of $69,000 is hit. ^[3][5]

As of June 2024, some memecoins that achieved the marketcap goal include BaoBaoSol ($BAOS), Hobbes ($HOBBES), and Shark Cat ($SC). ^[9][10]

Notable Memecoins

1. michi ($michi)

   MichiCoin is a memecoin on the Solana blockchain, known for its association with Michi, an internet-famous cat. The token leverages the popularity of Michi, attracting a community of cat lovers and meme enthusiasts. On May 13, 2024, Michi reached its peak market capitalization of US$ 339.82 million. ^[14]
   

2. Shark Cat ($SC)

   Shark Cat is a memecoin on the Solana blockchain, featuring the viral image of a kitten named Nala in a shark costume. Leveraging Nala’s popularity, Shark Cat gained traction in the crypto community. On March 31, 2024, Shark Cat reached its peak market capitalization of US$ 385 million. ^[15]
   

3. MOTHER IGGY ($MOTHER)

   Mother Iggy is a memecoin token created by Australian rapper Iggy Azalea. The token gained popularity due to Azalea’s plans to use it for purchasing mobile phones and plans from her telecommunications company. After the launch of $MOTHER, Azalea’s appearance with Jim Cramer at the New York Stock Exchange caught the attention of the crypto community. On June 6, 2024, Mother Iggy reached its peak market capitalization of US$ 264 million. ^[16][17]
   

Security Incident

In May 2024, Pump.fun was subjected to a security breach perpetrated by a former employee. This individual exploited the platform by using flash loans to manipulate the bonding curve contracts, resulting in the misappropriation of approximately $1.9 million worth of SOL tokens. The exploit was publicly acknowledged by the attacker, who criticized the Pump.fun team for mishandling user funds and other grievances. ^[2][4]

The breach led to a temporary halt in trading while the Pump.fun team conducted a thorough investigation. They identified the vulnerabilities exploited and took measures to secure the platform against future attacks. These measures included redeploying contracts and implementing additional security protocols to prevent similar incidents.

Pump.fun shared their thoughts on their X profile:

“We are aware that the bonding curve contracts have been compromised and are investigating the matter,”

In an effort to regain user trust, Pump.fun announced that it would offer zero-fee trading for a week following the incident. Additionally, the platform committed to compensating affected users, with the goal of maintaining a safe and reliable environment for its community. ^[2][4]

Pump.fun shared on their X profile that they are taking protective measures:

“working with some of the most esteemed security folks in the space,”

The response from the cryptocurrency community was mixed, with some viewing the exploiter as a whistleblower highlighting platform weaknesses, while others criticized the security lapse. Despite this, Pump.fun has continued reinforcing its security measures and striving to provide a safe platform for memecoin creation and trading. ^[4]

Founders

Two individuals, known as "Alon" and "Sapijiju," both claim to be co-founders of Pump.fun, but their true identities remain unknown. ^{[6][7][8][11]}