What is Pump.fun? A Solana-Based Memecoin Launch Platform

Article Summary

• 🚀 What is Pump.fun – A Solana-based platform that enables anyone to create and trade memecoins within minutes, no coding required.
• 🛠️ Key Features – No-code launchpad, bonding curve pricing mechanism, automated liquidity, and permanent LP token burning for rug-pull protection.
• 📈 Rapid Growth – Leveraging the 2024 memecoin supercycle, token launches skyrocketed from just hundreds to millions within months.

What is Pump.fun?

Pump.fun was designed to simplify the process of creating new tokens. Through this service, anyone can launch a token on Solana by providing only basic details such as the token name, ticker symbol, and an image.

The platform consists of two main components:

1. Memecoin Launchpad – The core feature driving Pump.fun’s rapid adoption, enabling users to create thousands of tokens, each developing its own speculative community.
2. $PUMP Token – To capture the value generated by its ecosystem, Pump.fun introduced a native token called $PUMP. Intended to support incentives and the platform’s broader economic model, the utility of $PUMP remains under development.

Before Pump.fun, launching a token required technical expertise, significant capital for liquidity, and carried risks of rug pulls due to opaque systems. Pump.fun automated and streamlined this process, making token creation more secure and accessible.

To gain a deeper understanding of the memecoin supercycle, read the article Memecoin Supercycle: Is Memecoin Potential Still High? on Pintu Academy.

History and Background

Pump.fun officially launched in January 2024, founded by a developer known as Alon on X (formerly Twitter). Built without early venture capital support, the project grew organically from the ground up.

• By February 2024, fewer than 1,500 tokens had been created.
• By March 2024, the number exploded to over 75,000 tokens.
• By September 2024, nearly 2 million tokens had been launched, generating around $100 million in revenue.

• During a live interview between Elon Musk and U.S. presidential candidate Donald Trump in August 2024, users created 10,000 new tokens in just three hours.

• By mid-July 2025, analysts estimated Pump.fun had facilitated the launch of roughly 11.8 million tokens.

This exponential growth highlights Pump.fun’s strong adoption and its role in shaping Solana’s memecoin culture.

How Pump.fun Works

Pump.fun leverages Solana’s fast and low-cost blockchain infrastructure to automate both token creation and trading.

• Fair Launch Model – Ensures all users can access tokens on equal terms.
• Bonding Curve Pricing – Token prices adjust dynamically based on supply and demand.
• Automated Liquidity – Liquidity pools are created programmatically, reducing reliance on centralized intermediaries.

Token Creation Process

As of August 2024, creators incur no costs; the first buyer covers the initial fee. To launch a token, users simply:

1. Connect a Solana-compatible wallet.
2. Select “Start a New Coin.”
3. Input token details (name, ticker, image, description, and supply options).
4. Deploy instantly to the market.

Bonding Curve 📈

This system automatically determines token prices. Purchases mint new tokens, raising the price, while sales burn tokens, lowering it. The model guarantees instant liquidity and a transparent pricing structure.

Smart Contract Automation 👩🏻‍💻

Pump.fun uses smart contracts to manage every step of the process—from token creation to DEX listing. Once a token reaches a defined market value, the system automatically:

• Creates a liquidity pool on a DEX.
• Burns LP tokens, permanently locking liquidity.

A Liquidity Provider (LP) token is a proof of ownership granted to users who deposit assets into a liquidity pool. It serves as a receipt that allows holders to withdraw their initial capital along with any earned rewards. Beyond that, LP tokens can be utilized in various ways, such as compounding yields through yield farming, securing crypto-backed loans, or transferring ownership of the liquidity provided.

Permanent Liquidity Lock 🔐

By burning LP tokens, Pump.fun ensures that liquidity cannot be withdrawn by developers, minimizing rug-pull risks and improving investor trust.

Potential of the $PUMP Token

Pump.fun quickly became one of the leading platforms for token launches. By August 2025, it had generated over $727 million in cumulative revenue and facilitated hundreds of thousands of token launches, with peak daily revenue exceeding $7 million.

The platform’s impact extended beyond revenue—it became synonymous with memecoin creation on Solana and captured significant cultural relevance within the crypto community.

ICO Performance

Pump.fun’s ICO for $PUMP demonstrated the scale of its influence:

• $500 million raised in just 12 minutes from more than 10,000 wallets.
• Combined with a $700 million private sale, total funds raised surpassed $1.2 billion.

Tokenomics of $PUMP

The $PUMP token has a maximum supply of 1 trillion, distributed as follows:

• Team – 20%
• Existing Investors – 13%
• ICO – 33%
• Community & Ecosystem Initiatives – 24%
• Livestreaming – 3%
• Ecosystem Fund – 2.4%
• Foundation – 2%
• Liquidity & Exchanges – 2.6%

Team allocations and ecosystem funds are generally locked at the Token Generation Event (TGE), leaving the 33% ICO allocation as the primary source of liquid supply.

Pump.fun vs. Other Platforms

Conclusion

Pump.fun has positioned itself as an innovative launchpad that streamlines memecoin creation and trading on Solana and Blast.

With its no-code interface, bonding curve pricing, and permanent liquidity lock, the platform offers a transparent, secure, and accessible environment for both creators and traders.

Its rapid growth since early 2024 highlights its ability to capture momentum during the memecoin supercycle and achieve product-market fit. Moving forward, Pump.fun’s relevance will depend on its ability to continue innovating and adapting to the fast-changing crypto landscape.

💡 Disclaimer: All articles from Pintu Academy are intended for educational purposes only and should not be considered financial advice.

References:

• OSL Academy – What is Pump.fun? Accessed on August 17, 2025.
• Forbes – Explainer: Pump.fun and the Rise of Solana-Based Memecoins. Accessed on August 17, 2025.
• Bybit Learn – Guide to Pump.fun: Solana’s No-Code Memecoin Launchpad. Accessed on August 17, 2025.
• Cointelegraph – What is Pump.fun? A Deep Dive into Solana’s Memecoin Generator. Accessed on August 17, 2025.
• Phemex Academy – Investment Analysis: Pump.fun and the PUMP Token. Accessed on August 17, 2025.