Image and text | Xingchen 2024.8.2 "Web3 in My Eyes" Issue 9
Today I’m taking a look at pump.fun, as I’m late to the party. It’s considered one of the hotter projects in this cycle.
I've often heard about it, and it's obvious that they spent money to buy Guangzi, and the publicity was quite good.
Just yesterday, DeFiLlama data showed that pump.fun’s cumulative revenue exceeded 80 million US dollars.
According to Lookonchain statistics, the top five crypto projects with the highest revenue in the past 24 hours and 7 days are: Tron, Solana, Pump, Ethereum, and Trojan.
Solana has really made progress and ranked second.
The third one, pump.fun, is a meme publishing tool on Solana, and the fifth one, Trojan, is a trading bot project in the Solana ecosystem.
By the way, yesterday Solana uploaded a short video they made, which is funny and satirical about the current state of the industry. It is very effective, and I recommend you to take a look.
I also noticed that Solana has been actively organizing offline activities and hackathons in various cities recently. It seems that they have a good marketing strategy.
Back to the topic, today we will mainly look at Pump.fun
pump.fun
1) Ecosystem: Solana
In addition: Added support for Ethereum L2 Blast (the circle is really small, and it’s an acquaintance)
2) Project Overview: A Meme Publishing and Trading Platform
Emphasize that the cost of deploying a Meme is no more than $2 (0.02SOL) (really cheap)
(When we talked about Solana before, we said that Solana is the center of the Memecoin craze, so pump.fun can be said to be the center of the center.)
3) Highlight moment: Income exceeded Ethereum for a period of time (What is the source of income for pump.fun? Is it charging for publishing Memes? Is it charging for on-chain transactions? Friends who are doing in-depth research can come and explain its income mechanism in detail)
In February, Solana’s BOME, which ignited the meme fire, helped Solana’s active wallet addresses double, and the on-chain revenue increased by 160%.
Other public chains such as Avalanche and Aptos also followed suit and made a fuss in the Meme track, but to no avail. The Meme did not go viral and the on-chain transaction volume did not make any splash.
It seems that you can't force a situation, and it's hard to take advantage of a hot spot.
According to data from March this year, pump.fun added nearly 10,000 Meme coins every day, but the probability of loss in 24 hours was about 99.6%. Its survival cycle was really short, and it was prosperous but also a bubble.
4) Disadvantages: Pre-sale meme projects have rugs and most memes have a very short survival period and a high loss rate.
27 Solana pre-sale projects raised more than 655,000 SOL (over 114 million US dollars). One has to sigh at the craze for Meme.
Even Solana’s co-founder called on ambitious, unsuspecting, and extremely FOMO investors to stop paying for pre-sale projects...
5) Meme deployment process: Enter the pump.fun official website (the official website is also very meme-like, quite rough, quite crazy, and flashing) - click [start a new coin] - then give the Meme you created a name, brag about it and write a narrative, then upload a picture - pay 0.02 SOL - click and you're done.
A coin was issued very quickly and cheaply.
Pump.fun has done a good job in making it possible for everyone to deploy tokens in the existing market.
Meme general trading process: discover Meme coins - check project details with Birdeye or DEXscreener - trade in Jupiter or Raydium.
pump.fun not only supports one-click meme posting, but also adds a comment function. Not only can you comment, but it also adds a live broadcast function, so you can personally go on camera to promote your own meme, which is really crazy.
Everyone was having a great time and shouting that value investing was just a waste of time.
picture
1) pump.fun has become very popular.
When the industry is at a stage where the value is not easy to capture, Meme stands on the stage and twists its body, and the popularity is growing. Pump.fun provides a simple and cheap way to issue coins quickly. Several coins such as TEST and BOME are popular, which also brings popularity to the Meme lanuchpad platform.
I think this is also due to Solana's marketing capabilities.
2) As a result, Solana has revitalized and developed its ecosystem, and its on-chain revenue has skyrocketed. In the fierce competition among public chains, it has stabilized its position and sought further development.
3) Of course, there are some problems, such as:
1. How long can you last?
Most memes have no value support, are short-lived, are closely related to social hot spots, and are updated very frequently. This is also a problem for memes and also a problem for pumps.
Pump is also highly replicable. Just look at its rough workmanship and you will know that there must be a team that can make an application that is more sophisticated and has more functions than it, but the glory at this moment cannot be replicated.
It can certainly serve as a paradigm, but it will definitely come to an end.
New platforms and new protocols will continue to emerge.
- Presale Meme Rug Question
Pump has also come up with some official solutions, such as establishing liquidity on DEXs such as Raydium after deploying tokens, and then giving up the right to mint coins and locking or destroying liquidity provider tokens; or conducting a pre-sale, where participants send funds to an address without immediately returning them.
But it seems that it cannot be completely eliminated or solved.
- Pvp phenomenon, trading data fraud, and insider trading
Meme is more dependent on marketing, and the cost of creating a meme project is low.
As long as you are happy, you can deploy thousands of Memes by yourself.
A few days ago, there were a large number of internal insider trading cases in the Meme project NEIRO on Ethereum. They used mixers to buy chips, used sniping new currency bots and market-making arbitrage robots to create a large amount of transaction data for cover, and bribed multiple KOLs to shill, and the project party made a profit of more than 10,000 times.
Some KOLs have also revealed that pump.fun has similar problems. Meme projects operated by project teams will arrange a large number of trading bots, and even if you randomly open a newly issued token, you will find a large number of robots trading.
I don’t know what the future development of pump.fun will be like. How will pump.fun deal with the above problems and challenges in the future?
Let’s continue to pay attention together.
Finally, I would like to ask for your approval, please like, forward, collect and comment.
above.
Attached reference materials:
1) pump.fun official website: https://pump.fun/
2) There are so many amazing projects, what is the origin of Pump.fun, the largest meme launch platform of Solana: https://www.theblockbeats.info/news/52889
3) The insider trading routine of the new "Dog King" NEIRO: the mixer bought 70% of the tokens with a maximum value of 130 million US dollars, and KOLs collectively shill to create FOMO: https://foresightnews.pro/article/detail/65599
4) Public chain competition: Solana issues tens of thousands of Meme coins every day, but Memes from other chains are not adaptable https://www.techflowpost.com/article/detail_16875.html
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