PUMP.FUN is an innovative platform designed for Memecoin creators and traders, simplifying token creation and trading. Users approximately pay a fee of 0.02 SOL, enter the token name, and upload an image, making it easy to launch new tokens. Other users can buy and sell these tokens on the pricing curve, creating a fair market environment. When the token's market cap reaches $69k, the platform automatically injects liquidity into Raydium to ensure safety and liquidity. Additionally, creators who complete the bonding curve can also receive a reward of 0.5 SOL.
The process of creating a pool (or issuing a token) on Pump.fun is very simple. Here are the specific steps:
Connect wallet:
You need a Solana wallet, such as Phantom wallet. Ensure that there is enough SOL in the wallet to cover the transaction fee, which needs to be at least 0.02 SOL.
Visit Pump.fun:
Open the official website of Pump.fun and click the "Connect" button in the upper right corner to connect your Solana wallet.
Create a token:
Click the "Launch a coin" button to enter the token creation page.
Fill in the basic information of the token, including the full name, abbreviation (stock code), and upload a JPG format image as the token logo.
Determine the initial supply you wish to purchase, as you can immediately buy the tokens you created during issuance.
Confirm issuance:
After confirming that all information is correct, click submit and sign the transaction. At this point, the token has been created on Pump.fun and can be traded. Note that there are no presales or private placements; all tokens are distributed through a fair bonding curve.
Trading starts:
Tokens can be traded immediately after creation. The price is determined by the bonding curve, and as the purchase volume increases, the price rises. Users can trade through the "Buy" and "Sell" options on the platform.
Reach liquidity goals:
When the token's market cap reaches approximately $69,000 (equivalent to about 85 SOL in purchase volume), Pump.fun will automatically create a liquidity pool on Raydium and burn the corresponding liquidity provider (LP) tokens to ensure fairness.
Community participation:
Pump.fun has community features where users can discuss strategies on the token page, forming a community.
Of course, tools like GTokenTool can also be used to create tokens, supporting multiple public chains like TON, SOL, BSC, etc. Features include creating tokens, market cap management, bulk airdrops, token presales, IDOs, locking, staking mining, etc.
Main features of Pump.fun
Simple project creation:
Users can launch new tokens with the minimum initial investment (usually around a $2 fee).
The platform charges a 1% exchange fee for transactions, and when the token gains enough liquidity to trade on centralized exchanges (like Raydium), a fee of 2 SOL is charged.
2. Create and sell the token
After successfully creating the token, it can be directly traded on the pump. The mechanism is a bonding curve, allowing profits to be sold directly, and you can also buy directly if you are optimistic.
3. Meet certain conditions for fair distribution on Raydium
When the market cap reaches 69,000 tons, and the original purchase quantity reaches 85 SOL, Pump.fun will automatically add 20% of the tokens to liquidity on Raydium and abandon all rights, providing the market with a fair meme token liquidity pool.
4. Community participation
Pump.fun has a built-in community section where users can discuss strategies under the token, fostering a collaborative environment.
PUMP.FUN's pricing formula
Through the front-end code analysis, we can see that the pricing system of PUMP.FUN has a front-end virtual pool named virtualSolReserves. This virtual pool ultimately contains 30 SOL and 1,073,000,191 tokens, with a pricing formula following the constant product rule of x * y = k. After simple data calculations, the final k value is 32,190,005,730, and the initial price of each token is approximately 0.000000028 SOL.
The pricing formula is as follows: y=1073000191−3219000573030+x
PUMP.FUN's token release and fundraising process
The total issuance of tokens on Pumpfun is 1 billion, with a precision of 6, and after successful issuance, the LP's automatic burning and complete abandonment of contract rights. Users raise funds through buying and selling operations on the PUMP.FUN platform.
With token distribution users, a total of 85 SOL was raised, exchanging for 800 million Memecoin tokens. An initial liquidity pool has been established with 79 SOL from the raised 85 SOL (6 SOL as listing fee). Additionally, 200 million tokens will be added to the Raydium liquidity pool along with 79 SOL, bringing the total token count to 1 billion. The price of the tokens at listing on Raydium was 0.00000041 SOL, which is 14.64 times the final virtual pool price, with a market cap reaching 410 SOL at the moment of listing.
Note that Pump.fun is a high-risk platform as it primarily involves meme tokens, which usually have no real utility and exhibit extreme price volatility. Therefore, when using this platform, please ensure you understand the risks involved.