Who is Pump.fun For? A Beginner’s Guide to Creating Memecoins on Solana

For anyone new to blockchain, the complexity can be daunting. Launching a token, for example, usually involves smart contract coding skills, liquidity pool setup, and handling RPC node connection.

Pump.fun changes the game by letting anyone launch memecoins on Solana with just a few clicks, no tech skills required. Here’s a quick look at what Pump.fun is, how it works, and what we know so far about its upcoming airdrop.

What is Pump.fun?

Pump.fun is a Solana-based platform tailored to the memecoin market that makes it easy for anyone to create their own tokens or "memecoins," even if they don’t have technical skills or substantial financial resources.

All you need to do is connect your Solana wallet, and with a few steps, your own meme token is live on the blockchain. So, people who might have been left out before—like beginners or those without technical skills—now have a user-friendly way to launch their own digital assets.

Image: Pump.fun

Since launching in January 2024, nearly 3 billion tokens were created on Pump.fun, bringing in over $160 billion in cumulative revenue.

Here’s a quick snapshot of some of its biggest moments:

• May 2024: Attracted high-profile celebrities, turning the platform into a hotspot for “celebrity memecoin season;”
• August 2024: Faced a decline in user activity that coincided with the launch of competing platforms on TRON, BNB Chain, and other networks;
• October 2024: Made a comeback by launching Pump Advanced, an enhanced trading terminal offering zero fees for new users, reigniting interest in the platform.

Renewed interest also surged after Pump.fun’s anonymous co-founder Sapijiju hinted at an upcoming airdrop. While details on eligibility and timing are not yet confirmed, the airdrop is already generating excitement and could become one of the most anticipated events in the memecoin space.

How to launch a memecoin on Pump.fun

Creating a coin on Pump.fun is as simple as filling out a form. Here’s a quick walkthrough:

1. Link your Solana wallet to the platform.
2. Click “Start a New Coin,” enter basic details like the coin’s name and ticker. You can upload an image or video.
3. Once you hit “Create Coin,” the coin is live and available for trading.

Image: Pump.fun

What happens after launch

After launching, every Pump.fun project follows a similar path:

• Each coin created has a fixed supply of 1 billion tokens and a starting market cap of about $5,000.
• Prices automatically increase as more people buy in, following a bonding curve model, which benefits early participants the most.
• Once a coin raises around $69,000 in market cap, it earns an automatic listing on Raydium, a top decentralized exchange on Solana.
• Around $12,000 worth of tokens are added to Raydium. The liquidity provider (LP) tokens are then burned, which prevents anyone from taking out the liquidity.

From there, it ‘graduates” from PumFun and is available to a larger audience with more options for trading. Currently, only around 1.3% of memecoins reach this milestone, so it’s a big achievement for creators.

Pump.fun fees

The platform aims to make launching memecoins on the Solana blockchain affordable, so its fee structure is designed to minimize costs for creators:

• Pump.fun charges creators no fees to launch their tokens since August 2024;
• The first buyer pays a one-time fee of 0.2 SOL when purchasing a newly launched token;
• Users pay a trading fee of up to 1% on transactions inside the app;
• For tokens that complete the bonding curve model and achieve enough interest to list on Raydium, Pump.fun charges a service fee of 2.3 SOL from the raised capital.

Beyond that, Pump.fun provides several incentives to encourage user engagement: token creators who achieve the bonding curve threshold earn a 0.5 SOL reward.

Additionally, the new Pump Advanced terminal, launched in October 2024, offers 0% trading fees for the first month.

Pros and cons of using Pump.fun

Pump.fun simplifies Solana memecoin creation, even for those without coding skills. However, there are significant risks to consider.

Benefits

• Easy and low-cost launch for memecoins, even for non-coders
• No insider advantages
• More accurate reflection of market interest with the bonding curve pricing
• Early access to new memecoins
• Potential airdrop rewards

Risks

• High-risk trading environment
• The low entry barrier can increase the risk of potential fraud
• The platform exploit in May 2024 exposed security weaknesses, raising concerns about future breaches
• The platform isn’t open-source, which limits transparency

Overall, Pump.fun provides accessible entry points into the memecoin market but demands caution due to inherent risks, especially for inexperienced traders.

In summary: Who is Pump.fun for?

Pump.fun offers a unique opportunity for anyone curious about creating or trading memecoins. With minimal cost and no technical barriers, it’s perfect for creators who want to experiment with token launches and maybe even see their project gain traction. Traders, however, should approach it with caution, as memecoin investments are risky by nature.

With applications like Pump.fun, taking care of the technical side of token creation, launching memecoins has never been easier. However, developers ready to scale further or build and more complex blockchain applications still need a reliable infrastructure.

GetBlock is one of the services that offers one-click access to RPC nodes on 50+ blockchains, including Solana. Plus, new users can take advantage of a free package or a special offer for their first Shared Nodes subscription. Build with confidence with GetBlock’s time-tested and high-speed infrastructure!