Pumpfun

🚀 What is Pump.fun?

A Solana-based launchpad and auto-DEX launched January 19, 2024, by Noah Tweedale, Alon Cohen, and Dylan Kerler .

It enables anyone—no coding needed—to create a memecoin (name, ticker, image) for as little as ~$2 in SOL .

Tokens instantly go live and can be traded immediately via its native bonding curve system and integrated "PumpSwap" DEX .



---

📈 Key Features & Growth

Ultra-low entry barrier empowers retail memecoin creators and accelerates token launches .

Protocol earns a 1% trade fee and additional listing fees—generating hundreds of millions in revenue within its first year .

In early 2025, Pump.fun added a DeFi lending arm (Pump.Fi) to let users finance memecoin purchases with buy-now-pay-later financing .



---

🔄 PumpSwap – Internal DEX

PumpSwap launched in March 2025 to streamline trades and remove the previous need to migrate tokens to Raydium, cutting fees and delays .

Uses an AMM model similar to Uniswap V2 and Raydium V4, with a 0.25% fee split between liquidity providers (0.20%) and platform (0.05%); creators may soon earn a share .



---

⚠️ Risks, Controversies & Criticisms

Rug-Pulls & Pump‑And‑Dumps

Independent audits warn nearly 99% of Pump.fun memecoins end up as pump‑and‑dumps or rug‑pulls .

Out of millions of tokens launched, only ~1–1.4% reach Raydium, and far fewer survive or hold value .


User Experiences (Reddit)

> “Cause 99% of people lose money on pumpfun”  
“It’s 99.99% rug pulls. Its total bullshit…”  



They highlight a casino-like experience—light on winners, heavy on losers .

Security Breach & Legal Issues

Experienced a May 2024 hack, briefly distributing ~$2 million in SOL across tokens .

Facing a class‑action lawsuit alleging unregistered securities activities and gamifying trading, including collapse of tokens like PNUT .

Investigators revealed cofounder Dylan Kerler had a controversial history with early rug-pull operations .



---

🔍 Middle Ground: Democratization vs. Exploitation

Pump.fun is a double-edged sword:

Pro: Brings inclusivity, no-code tools, and viral community mechanics to memecoin creation and trading.

Con: Encourages highly speculative behavior, systemic fraud, and significant financial losses for most participants.



---

🧭 Bottom-line for Users

If you enjoy fast, chaotic speculation and are aware you’ll mostly lose, Pump.fun offers a thrilling playground. But for those seeking sustainable tokens or long-term gains, it's a risky arena—many warn that it “extracts liquidity” from more solid projects .