After the memecoin frenzies like Billy and Ginnan, the market continues to heat up with the emergence of new platforms like pump.fun and MakeNow.Meme. These platforms are considered useful tools for users to create memecoins and introduce them to the community. So, what is pump.fun? Let’s explore it in detail with Tiệm Coin in the following article.
What is Pump.fun?
Pump.fun is a platform that helps users create and trade memecoins. These memecoins typically don’t have much value beyond economic gains and are prone to market volatility. To address this issue, pump.fun uses a model called the Bonding Curve, which reflects the relationship between supply and the price of assets.
Behind the success of pump.fun is Alliance DAO, the entity that developed fantasy.top, a social trading card game on the Blast platform. Since its launch, pump.fun has generated significant revenue, thanks to the low-cost and simple process that allows users to create tokens.
How does pump.fun work?
The Bonding Curve mechanism used by pump.fun is seen as a way to limit the risk of rug pulls. Here’s how it works: after a memecoin is created, 800 million tokens are placed into the Bonding Curve. As users purchase tokens, the price increases along the curve; the earlier the purchase, the greater the potential to multiply assets if the token is listed on Raydium.
When the token’s market cap reaches $66,000, liquidity is added to Raydium, and a portion of the liquidity is burned to reduce the risk of market manipulation.
Guide to Creating a Meme with Pump.fun
- Step 1: Visit pump.fun and connect your wallet. Users can use Phantom, Backpack, or MetaMask wallets to connect and access the platform’s features.
- Step 2: Click on “start a new coin”.
- Step 3: Choose a name, ticker, and write a description for the memecoin, then purchase a small amount of tokens using SOL to protect your token.
Through this article, users can see that creating a memecoin today is incredibly simple, and anyone can do it. However, this also means that investing in memecoins is not straightforward. Therefore, be a smart investor and don’t let greed turn you into a gambler.
Trading memecoins should be limited to a small amount of capital. If the value increases, you gain a little joy, but if the memecoin gets rug pulled, you’ll only lose a small amount of money, which won’t significantly impact your life or family.
