Source: Gryphsis Academy
Introduction
Bitcoin, with its fixed supply, has established the value foundation of cryptocurrencies. Ethereum triggered the ICO frenzy through smart contracts, while Memecoin and Memecoin attracted massive funds due to their fair distribution. The rapid evolution of new technologies has expanded the audience of crypto applications, with the differing mechanisms of emerging token issuance reflecting changing investment values among the audience.
Unlike old meme coins like $DOGE, $SHIB, and $FLOKI, which attempt to integrate practical applications, the Memecoin market has seen a new trend since the beginning of this year, led by $BOME and $SLERF. From issuance to trading, many innovative applications have emerged around the Memecoin ecosystem, attracting attention across the board.
PUMP.FUN is a decentralized Memecoin issuance platform where users can easily create their own Memecoin by providing their creativity at a very low cost (0.02 sol). Users can also participate in tokens issued by others, witnessing the process of a Memecoin going from obscurity to widespread recognition.
PUMP.FUN, as a phenomenon-level performance application in the market, holds research value and deserves further discussion. The PUMP.FUN Dune dashboard can provide explanations of the new business format of the track from the platform, user, product behavior, activity, growth trends, etc., and is worth long-term tracking.
1. PUMP.FUN Overview
1.1 A Comparison
Starting with a comparison, in the author’s view, PUMP.FUN and FRIEND.TECH, which went online last year, have shown very similar market performances. They initially attracted attention in the on-chain Degen player circle on a small scale and then spiraled upwards in terms of both track and platform data after going mainstream. Both quickly established a high market share as industry pioneers, with real users and protocol revenue increasing daily, and the Fud that is ever-present in the crypto world having almost no impact on their ecological status.
In terms of product design, the two platforms are similar but still have some differences; both asset issuances use the PAMM (Primary Automated Market Makers) mechanism to provide convenience to users, but the assets and specific pricing curves differ.
Taking PUMP.FUN as an example (FRIEND.TECH is similar), PAMM is divided into two mechanisms: Fund-to-Mint and Burn-to-Withdraw. The former allows users to deposit their $SOL into the PAMM smart contract reserve pool, which then mints an appropriate amount of Memecoin based on the current pricing reported by the Bonding Curve and sends it to the user. The latter allows users to complete withdrawals by selling Memecoin to the PAMM smart contract.
Unlike Memecoin on PUMP.FUN, FRIEND.TECH tokens have the characteristics of integer minting and theoretical “infinite issuance” (establishing social relationships). Furthermore, FRIEND.TECH assets represent tokens for user social accounts, while PUMP.FUN is for users to issue Memecoin.
The two projects have very different strategies when entering the market and subsequent tactics. FRIEND.TECH is backed by top crypto institution Paradigm, and its investment portfolio includes Pointsfi user incentive measures used by the NFT market Blur and the Ethereum Layer 2 network Blast, which have also been replicated to help FRIEND.TECH with user retention. The launch of FRIEND.TECH V2, airdropping tokens and the Club Key gameplay, sparked a new round of market hype. On the other hand, PUMP.FUN adheres to the ethos of democratizing fair launches of Memecoins, with a background in funding that is hard to trace. Even though it earns tens of thousands of dollars a day, it has not announced any token plans and is quietly expanding its platform functionality.
For more in-depth research on FRIEND.TECH, you can refer to past shares: Friend Tech – Gryphsis Academy Seminar (https://www.youtube.com/watch?v=J-aCleuL-HA).
1.2 PUMP.FUN Bonding Curve and Product
Since the project contract is not open-source, only the gameplay and fees of the products launched by PUMP.FUN have been disclosed. The official documentation does not mention the mechanisms and product details used. In the research process, a product model needs to be constructed, and data needs to be compared and verified. Here is a specific study of the PUMP.FUN Bonding Curve:
(1) Building a Product Model
Compared to other track tokens, Memecoin is designed around community consensus and group trading sentiment. Generally, the total supply of tokens is large and fully circulated, allowing for various promotional strategies. The initial price is not set too high, and the early price curve is steep, causing significant fluctuations to attract funds.
PUMP.FUN Product:
Users come up with a creative idea, select a Ticker they want to release on PUMP.FUN, and then create a brand-new Memecoin with just one click.
Other platform users continuously buy and sell Memecoin tokens on the pricing curve.
PUMP.FUN then sends the newly created Memecoin to Raydium.
The new Memecoin gains more popularity, and users can trade a new Memecoin created by PUMP.FUN users, funded by other PUMP.FUN users, with a total supply of 1 billion tokens and an initial market value of $69k (410 $SOL) on Raydium.
Users can easily create Memecoins by simply coming up with a Ticker, uploading an image, writing a brief description, and paying a small fee; other users can comment below, and the message board-like function set up by PUMP.FUN also provides convenience for the Memecoin community. Clicking on a user’s address, the platform can show the tokens created or held by the user, as well as the objects they follow.
Other users can trade this token, and once fundraising reaches the limit, the tokens will be sent to Raydium.
(2) Pricing Curve
Unlike FRIEND.TECH’s pricing system, which only accepts integer inputs and outputs, PUMP.FUN’s token pricing system is a smooth curve. Unlike FRIEND.TECH’s tokens, which theoretically have infinite issuance, all Memecoins on PUMP.FUN share the same economic model, with a constant token supply. Users mint some tokens at a reasonable price on the Bonding Curve, and the remaining tokens, along with the raised funds, form an LP pool.
Through front-end code analysis of a function call named virtualSolReserves, it was determined that the PUMP.FUN pricing system has a pre-virtual pool with x0 amount of $SOL and y0 amount of tokens. By collecting data on users’ $SOL purchases and the corresponding token data, and fitting it to the formula x*y=k, it was calculated that the pre-virtual pool consisted of 30 $SOL and 1,073,000,191 tokens, with an initial k value of 32,190,005,730, and a price of 0.000000028 $SOL per token.
The combined curve pricing function is y=1,073,000,191 – 32,190,005,730/(30+x), where x is the purchase $SOL amount and y is the corresponding token quantity. Taking the derivative allows for the determination of the price per token.
The following is the function curve, with the blue line representing the pricing curve and the red line representing the price curve. The curve indicates the steep characteristics of newly issued Memecoins.
(3) Case Comparison Analysis
Users raised a total of 85 $SOL in the end, resulting in receiving 8 billion Memecoin tokens, which aligns with reality.
A total of 79 $SOL was raised (6 $SOL was used as a listing fee), with an additional 2 billion tokens added as the initial liquidity pool. These were sent to Raydium, resulting in a total token amount of 10 billion, which also aligns with reality.
Upon listing on Raydium, the price of each token at the completion of fundraising was 0.00000041 $SOL, marking a 14.64 times increase from the initial virtual pool price, which is consistent with actual circumstances.
In conclusion, PUMP.FUN charges a 1% platform trading fee before listing on Raydium, as well as a “listing fee” of 6 $SOL during the packaging and listing process on Raydium.
2. Why You Should Pay Attention to PUMP.FUN
2.1 Why Focus on Meme
For those outside the crypto world, Bitcoin has no practical use and exists solely for speculation. Its skyrocketing price merely reflects its success in spreading memes. In the Ethereum ecosystem with smart contracts, tokens like $UNI had no utility before the voting mechanism and, similar to Dogecoin, their investment logic was based solely on industry recognition and the consensus of the crypto spirit.
After the Meme Season, the summer of NFTs, and the online money-making frenzy of Memecoin Pre-sales, crypto users have gained a unique understanding of Memecoins with no utility. The lack of mainstream narratives, mismatched fund timelines, and the continuous pursuit of fair launches by crypto users have strengthened the reflexivity of the Memecoin market. For more viewpoints on memes, see:
Deconstructing Memes: Why Have Memes Performed So Well This Cycle?
In November last year, the launch of $ORDI on top exchanges marked the beginning of the summer of NFTs, injecting new narratives into the market amidst the changing crypto cycles. Currently, over 66 million Bitcoin mints have been created, contributing over $470 million in fees.
The last time the meme coin $GME gained market attention was three months ago. Recent activity by the protagonist of the GME event on social media has brought stocks and related cryptocurrencies back into the public eye.
On Solana, $GME saw a surge of 30 times, and related concepts on PUMP.FUN experienced explosive growth, showing a similar trend.
Celebrities issuing tokens on PUMP.FUN, collaborating with insiders in the crypto world, have further broken through barriers. The Caitlyn Jenner family’s token $jenner brought drama to the crypto world, achieving a 160x increase in value in one night, with a peak market value reaching $30 million.
Why focus on memes? Using the definition mentioned earlier in this article, “memes spread through imitation; any information that can be replicated through imitation is considered a meme.” As humans essentially being parrots, spreading memes is a phenomenon that is the result of the continuous evolution of a collection of genes seeking order in chaos.
In addition to the wealth creation effects of the Memecoin track, many crypto assets themselves possess meme attributes. Whether it’s Bitcoin, which has built the foundation of the crypto world’s value, decentralized tokens issued through smart contracts, or meme coins like Dogecoin based on simple logic.
2.2 PUMP.FUN Operational Data
Memecoins traded by PUMP.FUN users and platforms undergo a multiplier effect after being validated by market logic, leading to increased trading volume. All token information is labeled on PUMP.FUN, and the process of repeatedly mentioning hot events has brought huge profits to the platform.
After verification and construction of the Dune dashboard, it is believed that the magnified data results can explain most of the phenomena of the new Memecoin business format established by PUMP.FUN. The Dune data dashboard includes platform users, platform revenue, token creation status, high-frequency trading activity, and can analyze the platform from various aspects such as behavior, activity, growth trends, etc. The Dune dashboard website: PUMP.FUN by Gryphsis Academy.
(1) Platform Income
According to the Dune data dashboard, PUMP.FUN experienced its first wave of growth in mid-March. As a player who did not occupy the ecological position the earliest, users gradually accepted the platform during this time. Several Memecoins selected by the platform also created many wealth creation stories. The $SC, launched on March 26th, reached a market value of over $100 million within a few days. Other Memecoins created by users also had varying levels of wealth creation effects due to being in the early stages. The platform’s daily income reached 1000 $SOL and continued to grow.
PUMP.FUN experienced an explosive period from April to early May, with the $michi, launched on April 8th, breaking the $200 million market value, igniting market sentiment. Memecoin narratives shifted quickly, with numerous imitators appearing, from national coins brought by the summer Olympics to religious coins, and then to Trump concept coins. Thousands of Memecoins were created and traded daily. The platform’s average daily income surpassed 2000 $SOL.
From mid-May to the end of May, on May 13th, as GME stocks soared, Memecoins related to GME created by users on PUMP.FUN also set income records for the platform, reaching $1.2 million. After experiencing a brief decline in popularity following attacks from former employees, PUMP.FUN saw further breakthroughs after breaking barriers with Memecoins created by celebrities, bringing platform income back up to $1 million. After breaking barriers, the average daily income reached $700,000, with total platform revenue approaching $37 million.
On May 16th, due to the theft of the wallet account permissions for creating trading pairs on the PUMP.FUN platform by former employees, a significant amount of Memecoins that completed fundraising could not be listed on Raydium, resulting in a loss of $2 million for users. To compensate users, PUMP.FUN adopted measures to reduce platform earnings.
(2) User Growth
According to Dune data, PUMP.FUN’s user count is currently on the rise, with occasional setbacks, but the user-generated hype for the platform has not diminished. Before April 16th, new users on the platform increased dramatically, gathering nearly 35,000 active users within a month, gradually establishing user habits nurtured by the platform.
From late April to May, the daily influx of new users on the platform slowed down. After the celebrity effect broke through barriers, the number of active users reached its peak on May 30th at 64,378, with daily new user additions thereafter expected to slow down, indicating that the platform is likely to encounter its first user growth bottleneck.
(3) Memecoin Products
If we consider each user’s Memecoins traded on PUMP.FUN and the platform’s logic validation, a multiplier effect will be observed, resulting in increased trading volume. All token information is labeled on PUMP.FUN, and the process of repeatedly mentioning hot events has brought huge profits to the platform.
Through the verified and constructed Dune dashboard, we believe that the magnified data results can explain most of the phenomena of the new Memecoin business format established by PUMP.FUN. The Dune data dashboard includes platform users, platform revenue, token creation status, high-frequency trading activity, and can analyze the platform from various aspects such as behavior, activity, growth trends, etc. The Dune dashboard website: PUMP.FUN by Gryphsis Academy.
By Gryphsis Academy
End of Rewritten Article.The Memecoin traded on the UN platform is considered a platform product, with data reflecting user behavior to facilitate improvements to corresponding issues.
The number of Memecoins created on PUMP.FUN varies with the number of active users, with a total of 862,988 Memecoins created since the platform’s launch, averaging 15,000 new Memecoins added daily since May.
Among them, only 10,707 can be launched on Raydium for larger scale trading, indicating that the platform’s revenue mainly relies on transaction fees, with token creation and listing fees accounting for a smaller portion.
Currently, PUMP.FUN has not disclosed financing information yet, and the platform is still in its growth phase. Data from Dune shows a high frequency of trading addresses, suggesting the possibility of volume manipulation.
Additionally, the platform has introduced a live streaming feature, showcasing the issuance and operation of emerging Memecoins through live broadcasts and videos, providing a suitable way to break the barriers of traffic and funds.
PUMP.FUN has also partnered with @bubblemaps to generate trader-related bubbles, allowing users to view the relationships of token-holding wallets and determine if they are at risk of being targeted by Dev’s burn token wallets to reduce the risk of rug pulls. The effectiveness of the new platform features still needs to be verified through data, while the changing narratives and new feature releases of Memecoins reflect the team’s ability to adapt promptly.
Overall, PUMP.FUN ignited the market after its launch without institutional backing, meeting user needs through the Bonding Curve mechanism. The platform relies on the wealth effect brought by users issuing Memecoins to drive traffic and promote.
Subsequent shifts in Meme narratives were rapid, and the phenomenon of user-to-user PVP did not structurally affect data growth; instead, it continued to break barriers due to several hot events. In the future, external competitive platforms may face growth bottlenecks. However, for applications occupying advantageous ecological positions, there are more choices to be made.
Comparative Analysis 2.3
Compared to other Memecoin Launchpad competitors, PUMP.FUN is better able to build the underlying value of Memecoins based on community consensus and group trading sentiment. As of the completion date of this article on June 6, PUMP.FUN has 16 tokens with market values exceeding $3 million, with the $SC token having the highest market value of $300 million.
PUMP.FUN’s strong performance compared to weaker competitors can be attributed to its product and ecosystem support.
(1) Unlike other competitors that provide users with a calm and static experience, visiting the PUMP.FUN website offers a visually stimulating experience with dynamic visuals and vibrant colors that engage users’ senses, creating a sense of enthusiasm and magic similar to trading Memecoins. The gameplay introduction is concise, catering to the fast-paced nature of Memecoin trading users, while detailed information about the tokens is available on other pages, making it easier for new buyers to form community consensus. The platform’s logo is a green pill, conveying a sense of healing yet addictive, as users become increasingly engaged with the platform.
(2) Unlike PUMP.FUN, meme.market / werich_ / rugdotfun / Momentum_v1 rely on the Base chain for development, while the attention and funds on the Base chain have been diverted by FRIEND.TECH and Farcaster. Memecoins on the Base chain have leveraged the Socialfi platform to address cold start issues, and tokens like $DEGEN and $Friend have large market values, providing other Memecoin platforms with room for imagination. The Memecoin Launchpad track on the Base chain has users accustomed to the echo wall built by FRIEND.TECH and Farcaster through social patterns, with funds and traffic largely depleted.
(3) During the attack on PUMP.FUN, DEGEN.FUND launched on Solana, but similar Bonding Curve mechanisms and attempts to attract the market with lower platform fees did not result in sustained market attraction or sufficient scale. The $IYKYK token, which was hyped as a flagship target by players on the chain, eventually faded after a short-term speculative frenzy.
How to Participate in PUMP.FUN
In this new field of Memecoin Launchpad, PUMP.FUN should be considered a target for investment research and deep participation. Users on the platform can be divided into three roles: Memecoin Creator, Memecoin Trader, and Memecoin Opportunist. These roles can be fluid, and users may have different opportunities when switching between roles while encountering the same Memecoin.
Memecoin Creator
Memecoin Creators can be crypto artists, early evangelists of Memecoin narratives, project owners using platforms for promotion, or even celebrities who have broken barriers. They play a role in discovering and releasing new Memecoins worth trading, requiring a certain level of knowledge in communication and influence.
A good Memecoin Dev can work with social media to identify strong Tickers for the market. Even a Dev who is not very sensitive to the market with the help of PUMP.FUN can reduce trial and error costs. If you have a special identity like Caitlyn Jenner and Iggy Azalea, using the decentralized issuance platform PUMP.FUN can bring sufficient financial and traffic support to your token in a short period.
Crypto-native artists and Memecoin enthusiasts can reduce token issuance costs by leveraging PUMP.FUN after selecting good Tickers.
Discoverers can create new Memecoin narratives with cognition and influence for specific Memecoins, communities established under these narratives have the opportunity to further break barriers.
Celebrities issuing tokens on PUMP.FUN engage across barriers and participate in the Memecoin trend with crypto users, as the previous broken barrier in the crypto world was NFT assets. Compared to FRIEND.TECH, celebrity tokens and NFT assets can be one of the products of celebrity IP; tokenization of social relationships is not attractive to people with influence because their public social resources are abundant, and private social relationships satisfy their needs.
Memecoin Trader
Memecoin Traders, as the most active players on the chain recently, need to track wallets, use tools, follow social media, and develop their own trading strategies to profit from the high-risk, high-reward game. Compared to other risky assets, traders’ profits on Memecoins are more unstable, with generally low success rates, and the platform’s characteristics lead to an increasingly fast-paced trading environment, increasing the likelihood of losses.
The experience of a Memecoin Trader on PUMP.FUN made the author realize the importance of team support, even for on-chain players facing great opportunities, they need the cooperation of community members. The community consensus formed by trading interactions ultimately returns to the consensus of the trading target. Below is a recap of @0xSunNFT and community members with the release of the Iggy Azalea celebrity token $MOTHER.
Memecoin Opportunist
Whether it’s arbitraging targets as a chain scientist or bots seeking alpha opportunities with high-frequency behavior, Memecoin Opportunist is a smart wallet that deserves in-depth research compared to the other two platform roles. Choosing the right strategy to become a Memecoin Opportunist on PUMP.FUN is worth considering.
Using a Texas hold’em analogy, entering the pot when the table is hot can choose a sniping bot strategy with good liquidity and high market conditions to increase engagement and amplify profits; when the table is not as hot or the market is relatively bottomed out or stable, a counter-sniping strategy can be chosen to remain sensitive to the market while generating revenue.
(1) Sniping Strategy for Memecoin Opportunist
When a new Memecoin is launched on PUMP.FUN, the snipe bot, after filtering indicators, completes the first few buy transactions within seconds. Due to the low entry position, the early pricing curve is steep, and the overall market heat of Memecoins is sustained. This strategy has captured several high-growth targets in recent months.
From left to right are $DONALDCAT with a market cap of $15 million, $Japan with a market cap of $5 million, and $Nigi with a market cap of $12 million.
Sniping bots need to be sensitive to market sentiment, and unlike regular users who may use Solana Sniper Bots, sniping on PUMP.FUN does not involve contracts to snipe but rather the act of issuing coins. It requires clear monitoring of user interactions on the Solana chain and the platform, with the ability to isolate tokens issued by Devs engaged in rug behavior. After the snipe is completed, setting parameters to adjust stop-loss or take-profit in a timely manner, backtesting data, and adjusting the capital used for sniping.
(2) Anti-Sniping Strategy for Memecoin Opportunist
The broad net approach of sniping bots relies on overall market conditions; however, it requires capital and faces emerging competitors who further compress profit margins. As the strategy competes, fewer Memecoins can break out, and in this context, the emergence of the Anti-Sniping Strategy for Memecoin Opportunist is to address this market change. Implementation includes:
Regularly summarizing market hotspots and establishing issuance material libraries
Testing sniping behavior of snipe bots and organizing bot strategy (ticker, amount, time…)
Automate the issuance process and build a counter-sniping process
Adjust parameters to improve capital utilization
The anti-sniping strategy leverages PUMP.FUN’s low-cost issuance feature, and a well-adjusted anti-sniping strategy can bring single-digit profits ranging from 2% to 20% in a short period.
The construction of parameters requires an analysis of sniper bot address behaviors in the market, and signals from short-term market hotspots will continue to trigger strategy signals, automating the entire counter-sniping strategy process is key to improving capital utilization efficiency and expanding profits. The counter-sniping strategy can achieve low-risk arbitrage, not only screening out good Memecoin narratives at low cost but also garnering potential future airdrops.
BSC has attracted traffic and funds through the Meme-Innovation-Program event to lay the initial foundation for the Meme track; the Base chain is currently launching the Base Onchain Summer event under the leadership of its founders, ensuring that Base’s Memecoins will receive skewed traffic. Public chains organize Campaigns to lay out Memecoins and related tracks, while PUMP.FUN, as a unicorn application in the emerging track, currently only runs on Solana. While believing in the PUMP.FUN team and product, strategy for track participation should also consider hot cycles.
In the author’s view, the way institutions enter the market is almost certain now, whether through strong acquisitions at lows or as investors participating in construction, the track leader will return to its rightful value in both primary and secondary markets. Therefore, the author believes that adopting the Anti-Sniping Strategy for Memecoin Opportunist is the best way to lay out the entire track in advance through PUMP.FUN.
Conclusion
From Ethereum to Solana, from Shiba Inu to frogs, from crypto enthusiasts to celebrity effects, people’s pursuit of traffic hotspots never stops. From sloths burning pools to the innovative issuance and trading of PUMP.FUN Memecoins, people continue to explore the decentralization and fair mechanisms of Memecoins.
As a leader in the emerging track, PUMP.FUN’s extremely low-cost issuance model has completely changed the ecosystem of Memecoins, meeting user needs and becoming a unicorn project in the crypto field. As the most crypto-native narrative application, PUMP.FUN has not even released its platform token yet. What kind of economic flywheel it will eventually form requires early explorers in the track to continue exploring.
According to Defillama, the PUMP.FUN protocol as a Memecoin issuance platform on Solana has monthly revenues exceeding Uniswap Labs, making it the fourth largest protocol across all blockchain networks. Faced with this unicorn application with no additional disclosure, we need to understand what it truly is. Some may see it as a large casino, while others may view it as another platform for liquidity-starved PVP in the crypto world. The author believes that besides the aforementioned characteristics, it should be a revolutionary product for new crypto assets, embodying the decentralized spirit in an extremely low-cost manner. Just as Bitcoin rewarded early miners and evangelists, why can’t Memecoins reward users who discover their value through a game process, only because Bitcoin consumes electricity while PUMP.FUN consumes mental and physical energy?
“Do not take deconstructed things as the ultimate answer to problems until you learn how to construct.” Faced with the surging wave of Memecoin reforms in the crypto MATRIX world, the author will swallow the green pill of PUMP.FUN with a calm mindset.
