Pump.fun – A platform for creating Memecoins with a revenue of $165 million, opening up an exciting opportunity for early users to hunt airdrops. So, how can you effectively hunt airdrops on Pump.fun? Let’s explore it in the simplest and most understandable way!
What is Pump.fun?
Pump.fun is a platform that helps users easily create and trade tokens with just a few simple steps. You only need to input basic information such as token name, symbol, description, and image to instantly launch your token.
Currently, the platform mainly focuses on Solana but has also expanded to other ecosystems like Blast and Base to meet the growing demand from users.
Pump.fun charges a very low fee for creating tokens, about 0.02 SOL (2-3 USD), making token issuance easy and affordable. With low costs and no complicated approval steps, most of the tokens on this platform are memecoins.
Here are some impressive figures Pump.fun has achieved recently:
- Launched in January 2024, as of November 3, the total revenue of Pump.fun reached $165.8 million.
- The platform has released nearly 3 million tokens, with an average of 10,000 to 20,000 new tokens being created each day.
- Pump.fun charges a fee of 0.02 USD for each token creation and a 1% transaction fee for both buyers and sellers.
- In the last 14 days, the transaction volume on Pump.fun reached $1.9 billion – a remarkable figure.
- The number of active wallets consistently stays high. In October, daily active wallet addresses were always over 50,000, peaking at 105,000 addresses on October 29.
Development Team
Pump.fun was founded in January 2024 by an anonymous individual with the X account @a1lon9. Currently, detailed information about the core team has not been disclosed.
Investors and Partners
The project has not yet disclosed any information about its investors.
What is the product of Pump.fun?
Pump.fun is primarily a platform that simplifies token creation and trading. It uses a Bonding Curve model to automatically price and manage liquidity for new tokens.
With the Bonding Curve model, token prices change based on supply and demand: the more people buy, the higher the price; the more people sell, the lower the price. Specifically, when the market cap of a token reaches $69,000, Pump.fun automatically adds $12,000 in liquidity to Raydium – a decentralized exchange (DEX) on Solana to ensure liquidity and stability for that token.
For example:
Suppose a new token is created on Pump.fun starting at a price of $0.01. As the number of buyers increases, demand rises, and the token price increases according to the Bonding Curve. If more people buy, the price could rise to $0.02, then to $0.03, and continue to grow exponentially.
On the contrary, if many people sell the token, demand decreases, and the price will decrease according to the Bonding Curve. For example, from $0.03, the price could drop to $0.02 and continue to decrease if more sellers emerge.
When the market cap of this token reaches $69,000, Pump.fun will automatically provide an additional $12,000 in liquidity to Raydium. This ensures that users can buy and sell the token with low slippage, keeping the token market more stable.
How to do Airdrop on Pump.fun Memecoin Platform
To effectively hunt airdrops, you need to have a good understanding of Memecoins, a stable trading system, and prepare investment capital (at least about $100 for this deal). The criteria that can be used to select airdrop recipients include:
- Trading volume
- Number of transactions
- Active days
- Creating tokens on Pump.fun
To start, you can follow these basic steps:
- Visit the Pump.fun platform.
- Connect your Solana wallet: Use wallets like Phantom, Solflare, or Magic Eden to connect to the platform.
- Create or trade Memecoin: You can create your own memecoin or participate in buying and selling existing memecoins on the homepage. Choosing the right memecoin to trade in order to generate significant trading volume requires thorough research and evaluation.
When trading memecoins on Pump.fun, you should pay attention to the following points to choose the right one with low risk:
- Market Cap (MC): Prioritize memecoins with a market cap of at least $50,000 to $60,000 or higher. A larger market cap often indicates community interest and investment, reducing the risk of volatile price movements.
- Listed on Raydium: Raydium is a decentralized exchange (DEX) on Solana. If a memecoin is listed on Raydium, it shows that the project has passed evaluation and has good liquidity.
- Circulating Supply Ratio: Choose projects with at least 80% of the total supply already sold. This information is usually displayed on the project’s price chart. A higher circulating supply ratio helps reduce the risk of price manipulation and increases the stability of the memecoin. Projects will have this text on their charts.
“Bonding curve complete! A Raydium pool will be seeded in the next 5-20 minutes with” and “Raydium pool seeded! View the coin on Raydium”
- High liquidity: Choose projects with liquidity from $200,000 to $1 million or more. Large liquidity will make trading easier and less affected by large price fluctuations.
- Long and stable project lifecycle: Prioritize memecoins that have been stable with low volatility. The more stable the project, the higher the chances of maintaining price and generating high trading volume. The main goal is consistent volume and trading frequency.
- Quick Buy feature on Advance: You can experience quick buys in the Advance mode to optimize transaction speed and improve your experience while hunting airdrops.
How to Create Memecoin on Pump.fun:
1. Go to the Create section on pump.fun.
2. Connect your wallet and fill in the basic details like token name, ticker symbol, and description for your memecoin.
3. Then pay a SOL fee which is usually around $5.
After creating the token, your memecoin will be ready to trade on the platform. You can buy and sell your memecoin or others to generate trading volume and increase your chances of receiving airdrops.
Note: Participating in memecoin trading on Pump.fun can open up opportunities to earn from airdrops and the growth potential of the meme coin, but it also carries high risk. Make sure to do thorough research and only invest what you are willing to risk.
Development Roadmap
As of November 2024, Pump.fun has not released a detailed roadmap or WhitePaper for upcoming development plans. The platform frequently releases new features and updates without prior announcements, showing its flexible strategy and ability to quickly adapt to market trends and user needs.
A notable highlight is on October 20, 2024, when pump.fun launched “Pump Advanced” – an advanced trading interface with tools such as real-time charts, premium filters, and live updates, helping users track and analyze the market more effectively.
During this time, the development team also hinted at the upcoming launch of their own token, raising high expectations among users and investors for the long-term development of the platform.
Although specific details on upcoming developments have not been disclosed, this move indicates that Pump.fun is focusing on expanding the platform’s capabilities and exploring new directions to meet user demands.
Tokenomics
The project has not disclosed detailed information on Tokenomics.
Pump.fun’s Potential and Challenges
Potential:
Looking at the project’s revenue gives an idea of the potential of Pump.fun. This number is not likely to stop here, and it will continue to rise as long as the memecoin trend remains popular.
Trading memecoins is essentially like futures trading – both have a “gambling” nature, offering the potential for quick, even large profits. This demand exists regardless of whether the market is in an uptrend or downtrend, signaling positive momentum for Pump.fun’s product, meeting market needs.
Memecoins are currently a major trend in this cycle. While technology coins are struggling, projects with real revenue, real products, and serving as infrastructure for one of the giant Narratives make Pump.fun very promising.
Pump.fun has also revealed some information about airdrops for users on the platform. This will attract more “degens.” It is very likely that the project will do a relatively large airdrop since the current daily revenue of Pump.fun is impressive.
Challenges:
Currently, Pump.fun does not vet the quality of the tokens on the platform. This allows bad actors to take advantage and cause harm to users. If another platform addresses this issue in the future, it could be a direct competitor to Pump.fun.
The success of Pump.fun will likely attract many projects eager to capture a share of this growing market. Pump.fun needs to stay focused to avoid losing its position, similar to what happened with Tether (USDT), where large institutions wanted to capture what Tether has achieved.
Conclusion
We hope this article has provided you with a comprehensive overview of what Pump.fun is, as well as effective strategies for hunting airdrops on the Pump.fun platform. The Bnbfaucets team will continue to update the latest information about the project for our readers!
