What Is Pump.fun? Meme Coin Lovers Must Have Know

JAKARTA - Pump.fun is Solana-based decentralized exchange (DEX). Pump.fun is also known as a platform that offers easy ways for users to create and distribute their own tokens, especially "memecoin" tokens with no intrinsic value other than the novelty and value of the community.

The platform is attracting attention as it facilitates the manufacture of tokens by celebrities, although most of them are experiencing difficulties in maintaining stable price values.

Pump.fun is designed with several protection mechanisms to prevent dishonest behavior, such as keeping tokens secretly for early users or selling tokens at discount prices. These features aim to maintain market integrity and protect investors.

How To Trading Memecoin In Pump.fun

On the main page of Pump.fun, users can find memecoin grids that other users have just launched. If you are interested in buying certain tokens, you can connect compatible crypto wallets with Solana, such as Metamask, Phantom, WalletConnect, Solflare, and others, by clicking on the button in the upper right corner of the screen.

After selecting tokens, you will be redirected to pages with additional information such as price graphs, user comments, the latest trade list, and interfaces to buy or sell tokens. The sale of tokens in Pump.fun uses bond curves rather than traditional order books.

This means that the increase in demand for tokens will increase the price of these tokens along the curve, providing an advantage for early buyers. If a token manages to reach a market cap of US$69,000 (Rp1,104,000,000), the token will be listed on Solana-based decentralized exchange Raydium, with 12,000 US dollars (Rp192,000,000) of tokens stored on the exchange and then burned or burned tokens.

Pump.fun earns a profit of 1% in each transaction and 2 SOL bonus every time the token reaches Raydium. According to data from The Block, the platform has generated hundreds of thousands of dollars per day of costs during its operations.

However, keep in mind that buying tokens in Pump.fun has a high risk because liquidity is often low and token prices can drop very quickly.

How To Make Memecoins In Pump.fun

Creating memecoins in Pump.fun is very simple. You just have to think about interesting names and striking images, then click on the "starting new coins" button on the main page. Users can also write a brief description of their coins and link relevant social media channels before paying 0.02 SOL (around Rp. 48,000) to launch their new memecoins.

For users who are new to crypto, they must first fill their wallet with Solana tokens purchased from exchanges such as Binance or Coinbase. This simplicity and low cost are the main attractions of Pump.fun.

Is Pump.fun Safe?

Although Pump.fun offers a variety of interesting features, there are some concerns about its safety. Recently, the platform was exploited by its former employee who stole nearly $2 million.

The perpetrator said he was arrested and released on bail in the UK after the theft. Pump.fun is also a closed-source platform and has a closed-door API, meaning the code cannot be seen by potential attackers, but also cannot be audited by third parties to find vulnerabilities.

Although Pump.fun promises a fair launch for every memecoin, restrictions on presales and allocations for insiders don't completely eliminate risks. Team members can still buy large amounts of tokens at the start of launch and sell them when prices rise. Trading memecoins at Pump.fun is very similar to gambling, so users should only invest the money they are ready to lose.