Creating meme coins on Pump Fun is extremely easy. This is because the platform has eliminated much of the complexity usually associated with creating a market for tokens.
In this guide, BeInCrypto will show you step-by-step how to create a meme token on Pump Fun, so that even if you are new to this market, you can still operate it yourself.
Also Read: Pump Fun is turning Crypto into a casino and there is no Altcoin season
Table of Contents:- How to create a meme coin on Pump Fun for beginners
- Things to know about your new Pump Fun token
- What is Pump Fun?
- Considerations when trading on Pump Fun
- Conclusion
- Frequently Asked Questions
How to create a meme coin on Pump Fun for beginners
As BeInCrypto shared at the beginning of the article, Pump Fun makes the process of creating tokens much simpler and more understandable. You don't need to know anything about coding, nor do you need in-depth knowledge of Crypto, but you can still do it and even make a lot of money from it.
If you are looking to create a meme coin representing yourself on the Pump Fun platform, here are the basic steps you cannot miss.
- Create a wallet.
- Start a new token.
- Fill in the token information.
- Log in with your wallet.
- Deploy the token.
It's too general, right? Don't worry! Here are the detailed steps for you to create a meme coin on Pump Fun.
Step 1: Create a wallet
Before creating a token on Pump Fun, you will need your own cryptocurrency wallet. For this guide, we will use the Phantom wallet, a wallet based on Solana.
1. Download the wallet: Visit the Phantom website and download the wallet. You can choose between the mobile app or the browser extension. Select "Create a new wallet".
2. Create a password: Create a strong password and agree to the Terms of Service to proceed.
3. Save the secret recovery phrase: Write down your recovery phrase to continue. You will have to re-enter the phrase in the order provided to proceed.
4. Get started: Your Phantom wallet is now set up, and you can proceed to the next step of creating a token on Pump Fun.
Step 2: Create a token
1. Start a new coin: Navigate to the Pump.fun website. At the top of the page, select [Start a new coin].
2. Fill out the form: On the next screen, you will see a form that you need to fill out. Enter the name and token symbol of your choice. You can also provide a description and an image or video.
3. Log in to your wallet: Before you can create your token on Pump, you will need to log in or sign up. You can use Brave Wallet, Phantom, SolFlare, Magic Eden, Torus, Ledger, or WalletConnect to complete this step. We will choose Phantom in this example.
4. Sign the Pump Fun message: Sign the message to prove that you own the wallet. Select Confirm to continue.
5. Create your token: You can provide a Telegram link, website, or X (Twitter) if you wish. However, this is not mandatory. Click "Create token" to proceed.
6. Buy the token (optional): You can choose to buy your token before it is made available to anyone else. After completing this step, you will officially create the token on Pump Fun.
Things to know about your new Pump Fun token
Launching a token on Pump is different from most other platforms. For example, all Pump tokens, without exception, have a max supply of 1 billion tokens and a transaction fee of 0.5%. Additionally, you do not have control over the liquidity, and if you want to hold your token, you will have to buy it like everyone else.
This may seem unfair to the creator, but on the contrary, it benefits both the trader and the holder. In this way, the token creator, who is also the LP, cannot rug pull the tokens.
One of the main functions of Pump Fun is to create tokens. However, its secondary purpose is to provide a market for the tokens it creates. In other words, Pump is both a launchpad and an Automated Market Maker (AMM). As you can see in the image above, the Pump platform has a standard trading interface for your token.
Most AMMs use a continuous bonding curve, but Pump uses a discrete bonding curve, which helps the token price be more predictable. All Pump tokens follow this model. In simple terms, the price of your token will only increase after it reaches a certain market capitalization threshold.
Pump Fun will list your token on Raydium, a popular Solana-based AMM, once its market capitalization reaches around 86 SOL. This event is called "graduation". To reduce the circulating supply and potentially support future price appreciation, Pump will burn 12,000 USD worth of the token supply when it transitions to Raydium.
The "King of the Hill" title is tracked by a leaderboard of tokens with notable trading volumes. A token needs around 45 SOL in liquidity to achieve this title.
What is Pump Fun?
Pump Fun is a platform for creating and trading tokens. It was created and launched in January 2024 on the Solana blockchain by an anonymous developer named Alon. Alon is a meme crypto trader who created Pump to address the market dynamics at the time, before Pump was created. Some of the issues they observed were:
- Constant rug pulls.
- Too many predatory tokenomics and too few fair launches.
- Creating a token group and managing liquidity and liquidity locking is very complex.
Pump is an automated launchpad for the token creation process. It also simplifies the complexity of managing a liquidity pool for your token's trading pairs.
On Pump, the token creator does not have control over the liquidity group for their token. This is because when you have the ability to remove the token from a trading pair, you can pull the token holders out of the market, leaving them with a near-worthless base token.
Considerations When Trading on Pump Fun
Whether you are creating or buying tokens on Pump Fun, there are some cases you should consider. These are:
- Volatility
- Market manipulation
- Pump and dump programs
Pump and Dump Programs
As mentioned earlier, the token creators still have the advantage of being first. This means they can buy their own tokens at a discounted price. Due to the discrete bonding curve of Pump, early buyers can buy a large amount of tokens at a low price. When the price increases, buyers will buy at a higher price controlled by the program. Therefore, the buyers or creators who bought at a low price can sell their tokens to the creator, using them as an exit liquidity.
CHINAWINS Price TrendThe China Trump (CHINAWINS) token was randomly selected for this guide, highlighting the prevalence of such situations and emphasizing the need for sound judgment when navigating Pump Fun.
Market Manipulation
Another common issue on the pump market - and closely related to pump and dump - is market manipulation. Market manipulation is the act of affecting the supply, demand, or price of an asset or market to create artificial conditions, misleading for personal gain. This can include disseminating false information, artificially inflating prices, or using coordinated trades to deceive other market participants.
Since the price of a token is controlled by the bonding curve, the creator can create bots or sybil accounts to artificially increase the price of their token, then sell the tokens to new buyers. The process works as follows:
- Create a token.
- Buy a large amount of tokens.
- Create multiple accounts on Solana.
- Buy tokens using those accounts to increase the price.
- Wait for users to buy the token at a higher price.
- Sell all your tokens.
The image above showing the CHINAWINS trajectory illustrates what this looks like on a chart - a sharp price increase, followed by a sudden drop. In the image below, we can see the token creator (BMr...2Z9thR) of CHINAWINS creating and closing sybil accounts (9LW5...AcN).
9LW5QRRMksYCNdFdFthNE4k246eQTvTGZ8fka4nsgAcN (sybil account): solscan.ioSybil accounts are fake or duplicate accounts created by an individual or organization to manipulate a system, often to gain an unfair advantage or deceive others by appearing as multiple independent actors. This strategy is often used in blockchain and decentralized systems to exploit mechanisms like voting, token distribution, or pricing models.
When you view the ACCOUNT CREATION transaction, you will see where the creator buys and transfers the token (CHINAWINS) into the account (9LW5...gAcN).
Creating Sybil AccountIn the final image, the Sybil account (9LW5Q...gAcN) sells the token and the account is then closed. Creators who want to create a fair launch for their token may find this particularly challenging, as the Sybil bot accounts can easily steal and manipulate the price for genuine users.
Closing Sybil AccountVolatility
Due to the pump-dump programs and the potential for market manipulation, Pump Fun tokens can be highly volatile. To be clear, pump and dump programs and market manipulation are not limited to Pump Fun or discrete bonding curves, but this is something everyone should always be aware of, regardless of where it occurs.
Additionally, the volatile market makes it difficult to determine the true price. When prices are artificially inflated or deflated, it becomes challenging for traders to buy at a reasonable price. This can lead to significant losses or unrealistic expectations.
Currently, there is no way to prevent any of these risks. Since gas fees and transaction fees on Solana are extremely low, creating tokens and sending spam transactions is almost costless when considering the potential price increase. Due to the bonding curve in AMMs, market manipulation is inevitable.
With a constant product (standard bonding curve/AMM), the price changes with each transaction, while with a discrete bonding curve (Pump), the price changes when the token reaches a certain milestone (assuming no secondary market).
Conclusion
You can create an account on Pump Fun with just a few clicks. You don't even need a cryptocurrency wallet. While this user-friendliness democratizes token creation, it also opens the door to malicious behavior. Currently, these trade-offs are unavoidable. Therefore, you should use this knowledge carefully, exercise good judgment, and always do your own research.
Frequently Asked Questions
How do I create a token on Pump Fun?
To create a token on Pump Fun, you will need a cryptocurrency wallet or email. Visit the official website and fill in the necessary information to create a token. You will have the option to buy the token before it becomes available to anyone else.
Is Pump Fun safe?
Pump Fun is safe from certain types of risks, such as rug pulls. However, the platform is still subject to pump and dump programs, market manipulation, and volatility. This is to some degree unavoidable.
How does Pump Fun work?
Pump Fun works by automating the token creation process. Instead of manually deploying and creating a liquidity pool, Pump creates and manages the liquidity pool along a discrete bonding curve. This platform serves as both a token launchpad and an automated market maker where you can trade the token.
