Let’s say we want to launch a new memecoin to the market.
But the problem is that we don’t know how to code and we have virtually no money to invest in launching it.
For illustrative purposes only, let’s say we want to create the BitOinc memecoin. That’s a Bitcoin typo, and also a pig memecoin – it’ll probably do the trick. We could even have its logo in the form of a Bitcoin “₿”, but sideways, so that it looks like a pig’s snout.
But to get BitOinc live, we’ll need to launch it somehow.
So, to launch our memecoin, the best way would be to use a launchpad. And what better launch pad to use than the hottest and most popular on the market?
In this Pump.fun review, we’ll cover everything there is to know about the platform, and also explain how to launch your own token.
What is Pump.fun
Pump.fun is a token launchpad on the Solana blockchain. The platform was one of the first to focus on memecoins. Enthusiasts from all over the world access the platform to buy, trade and create their own tokens.
At its core, Pump.fun is considered the simplest and most accessible option for anyone wanting to get started or get in touch with the “underground”. memecoin community. Because of this simplicity, Pump.fun has become very popular among retail traders and coin enthusiasts around the world.
Most importantly, the platform lives and breathes in the birthplace of the hottest memecoin trends: the Solana Blockchain. Solana has become the channel of choice for meme coins thanks to its low fees and lightning-fast transactions, and Pump.fun sits right in the center of that culture.
Solana Meme Coins
Solana has become the go-to channel for memecoins because it offers lower fees, fast transactions, and a thriving community of enthusiasts and developers.
Although Ethereum remains the backbone of decentralized finance, it has gradually lost ground in the meme coin space. High gas fees and slower transaction speeds make the process expensive and inconvenient for retail traders who want to launch or trade tokens on a whim.
This explains why Solana has become the most popular place for memes. And platforms like Pump.fun have accelerated this change by democratizing the token creation process, allowing millions of new tokens to emerge over the past few years.
But what is a Token Launchpad
A token launchpad is nothing more than a platform that helps new projects create, announce, and list tokens without the need for deep technical expertise or significant capital.
If launching your own crypto was like building your own software back in the day, then a token launchpad is the equivalent of modern app stores or website builders. Instead of writing thousands of lines of code, you get a ready-to-use toolkit.
For memecoinsthat thrive on community – launch pads also act as a social amplifier. In addition to doing most of the legwork needed to create a cryptocurrency, they also provide projects with immediate visibility and a stage on which communities can rally.
How Pumpfun works
Pump.Fun functions as an automated token factory on Solana. When someone launches a coin on the platform, Pump.Fun automatically deploys an SPL token contract (Solana’s equivalent of ERC-20 on Ethereum) with predefined parameters such as name, symbol, and supply.
Once the token exists, Pump.fun does not rely on traditional order books or pre-sales. Instead, it connects the token to a bond curve smart contract.
Pumpfun bond curve
Once the token exists, it still needs to go through certain processes until it becomes a fully tradable asset in the broader Solana ecosystem. First, the token is linked to Pump.fun’s bond curve contract.
The bond curve period serves as both a distribution mechanism and an initial liquidity pool. This period is essentially the “test drive” for memecoins, where the token gets its first sense of demand and liquidity.
Buyers at the beginning of the curve can purchase tokens at a discount. And as liquidity builds up, so does the price of said token.
This process makes sense when you consider that thousands of new tokens are launched every day. Competition is quite strong in the Solana Memecoin battlefields, and early buyers are acquiring tokens that they are not even sure will leave the bonding curve.
Once the memecoin finally “graduates,” it moves from the bonding curve environment into the broader Solana DeFi ecosystem. Since tokens are issued directly from the curve, there is no insider allocation or pre-sale advantage. Everyone interacts with the same curve and the distribution is as fair as possible.
Liquidity migration
The bond curve is not infinite: it has defined thresholds that determine when a token “moves” from Pump.fun to the open market:
- Supply Threshold: Once a set percentage of the token’s supply has been sold through the curve, the contract triggers the migration.
- Liquidity threshold: the SOL accumulated in the curve reaches a minimum amount required to initiate a pool on Raydium.
- Automatic migration: At this point, Pump.fun takes the SOL and corresponding tokens, creates a liquidity pool on Raydium and locks it. The token is now tradable on open DeFi markets.
This design ensures that each launched token has a fair start, transparent pricing, and guaranteed liquidity once it leaves the curve. The bonding curve isn’t just a gimmick: it’s the backbone of Pump.fun’s model, acting as a bridge between raw creation and market legitimacy.
Create Meme Coin on Pump.Fun
So imagine BitOin going live on Pump.fun. We wouldn’t need any money to launch it, and we don’t even need to write white papers on it.”Porkonomy“.
To begin, we must create an account on the platform; simply connecting a crypto wallet also works, almost any wallet on Solana will do.
From there, the process is simple: you choose the name, symbol and upload an image for your token.
Pump.Fun automatically deploys the SPL token contract on Solana, meaning you don’t have to touch a single line of code.
After this step, you have the option to purchase some of your own tokens. If you believe in the project, you have the chance to be the very first buyer.
And then… It’s done. Surprisingly easy and quick. After just a few clicks, our memecoin is officially online on the Pump.Fun platform.
Now, BitOinc is part of the bond curve battlefield. This is the proving ground where each new token fights for attention, and most of them fail. At this point, tokens on the platform are not yet tradable on-chain, as they are still locked to the bond curve.
Pumping fees
Pump.Fun’s pricing structure is one of the main reasons why the platform has become the most popular crypto launchpad. Unlike other platforms, there is no upfront cost to create a piece.
The only fixed charge occurs later, when a coin moves from the bond curve to PumpSwap. At this point, Pump.fun deducts 0.015 SOL from the liquidity pool to cover network fees.
During the bonding curve phase, each transaction incurs a small fee of 1.25% in total. This is split between creator fees (0.3%), protocol fees (0.95%) and liquidity pool (0%). Creation fees are particularly important because they allow founders to earn a share of business activities even if they have not purchased a large quantity of their own coin.
Once a token graduates and enters PumpSwap (PumpFun’s decentralized exchange), the fee structure changes based on the coin’s market cap. For low-capitalization projects, less than 420 SOL, the fees remain at 1.25%. Larger projects exceeding 98,240 SOL receive a fee reduction of only 0.3%.
Risks of PumpFun
PumpFun is a huge platform, with over 1.3 million active traders. What is also huge is the number of tokens launched each day. For example, the launchpad launched 600,000 new tokens in just one month in August this year.
This means that there is very high competition on the platform and only a very small margin of tokens exceeds the bond curve.
This means that not only is it extremely difficult for a token to succeed, but investors are also prone to losses.
Memecoins are volatile by nature; they are often defined as the riskiest assets in the cryptocurrency market. Now memecoins that haven’t even matured yet are even riskier.
As a result, the platform’s currencies carry significant risks, far more than any existing cryptocurrency on the market. The probability of the token reaching maturity is low, and the probability of investors making a profit is even lower.
While the curve ensures fair distribution and prevents tokens from being directly drawn at launch, there is nothing stopping early buyers, or even the creator, from “cash out” of liquidity once the memecoin hits Raydium.
What is Pump.fun and how does it work?
Pump.fun is a Solana-based launchpad that allows anyone to instantly create and trade meme tokens using an automated bonding curve.
Is Pump.fun safe to use on Solana?
It is technically secure since contracts run on Solana, but its open nature means scams and abandoned tokens are common.
What is the bond curve model?
A bond curve sets token prices algorithmically, starting at low prices and increasing as demand and liquidity increase.
Can Pump.fun tokens migrate to Raydium?
Yes, once supply and liquidity thresholds are reached, Pump.fun automatically bootstraps a Raydium pool and locks in liquidity.
Are Pump.fun meme coins risky to trade?
Extremely: most tokens fail to graduate, and even those that do remain highly volatile and speculative.
