What is Pump.Fun?

Figure:https://pump.fun/board

Pump.Fun is a decentralized issue coin platform running on the Solana blockchain, allowing users to issue their own Meme coins on-chain at the lowest cost and with the simplest operations. Users only need to fill in the token name and choose the basic settings to generate their own tokens and automatically list them for trading within a minute.

The platform’s biggest feature is “on-chain automation”; the entire process of issuing coins, adding liquidity, and starting trading is executed by smart contracts, without the need for manual approval or code development.

Analysis of Platform Operating Mechanism

The workflow of Pump.Fun is extremely simple: users pay a small amount of SOL as a gas fee to deploy a new token. The system automatically allocates 96% of the issued coins to the trading pool, while the remaining 4% is used for platform fees and incentive distribution.

Each token will automatically generate trading pairs on Solana (usually PUMP/SOL or PUMP/USDC) and will immediately open for trading. This mechanism greatly improves the listing efficiency of Meme coins and also reduces the risk of rug pulls.

The native coin PUMP performed remarkably well.

Figure:https://www.gate.com/trade/PUMP_USDT

PUMP is the ecological native token of Pump.Fun, serving functions such as platform governance, incentive distribution, and future development support. Its popularity was evident even during the public offering phase—at the beginning of July, when it launched, PUMP completed a fundraising target of 500 million dollars in just 12 minutes through multiple platform Launchpads, becoming one of the very few Meme projects in the Solana ecosystem to achieve such a high subscription speed. On July 15, 2025, PUMP officially launched on multiple trading platforms, and spot trading quickly heated up, with the price rising from the public offering price of 0.004 dollars to a peak of 0.006199 dollars, currently stabilizing around 0.0055 dollars.

Ecosystem Activity and Community Participation

Since its launch at the end of 2024, the Pump.Fun platform has deployed over 100,000 Meme coin projects on the Solana chain, with a daily average of thousands of active coin issuance. The number of on-chain address interactions continues to set new historical highs, attracting a large number of crypto enthusiasts, creators, and communities to experiment with various “coin creation playstyles.”

From crypto KOLs, self-media individuals, creator DAOs, to NFT project parties and retail investors, an increasing number of users are choosing to experiment with tokens on Pump.Fun. This atmosphere of universal participation in Meme creation has also become one of the platform’s most representative ecological characteristics.

Key risks that investors should be aware of

1. High volatility and FOMO sentiment: Meme projects generally experience significant fluctuations, and one should be aware of the risks of short-term entrapment;
2. The airdrop has not been fully released: 24% of the total PUMP supply will be used for community airdrops, and the release pace is not yet clear.
3. The platform content is extremely free: Not all tokens have value, some projects may involve scams or manipulation;
4. On-chain fee fluctuations: Although the SOL network has relatively low rates, it’s important to be aware of delays and slippage during peak times.