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Solana token creation platform
pump.fun
Type of siteCryptocurrency exchange
Available inEnglish
Created byAlon (pseudonym)
IndustryCryptocurrency
URLhttps://pump.fun
CommercialYes
RegistrationA Solana wallet is required to interact with the platform
LaunchedJanuary 19, 2024; 11 months ago (2024-01-19)
Current statusActive

pump.fun (commonly referred to as Pump) is a cryptocurrency trading platform for the Solana blockchain that enables users to create tokens and trade them immediately on the platform, as well as to launch them onto decentralized exchanges like Raydium. The domain name was first registered on September 19, 2023, with the platform launching exactly four months later on January 19, 2024. After its launch, Pump quickly grew in popularity with over 5.1 million tokens being created through the platform as of December 26, 2024. While any type of token can be created, the majority of tokens are classified as meme coins due to their lack of functionality outside of investments.

The website was started by an anonymous developer known as Alon, tweeting that he wanted to make Pump "the most fun place on the internet." Over 2.4 million unique tokens have been created as of December 2024, but they face a high failure rate, with roughly 98.5% percent of tokens failing to be listed on Raydium. The majority of the site's revenue comes from fees, making it one of the more profitable blockchain platforms by the end of 2024. The platform has been compared with social media platforms such as 4chan, as all accounts are identified either with their Solana wallet address or a nickname, as well as token listings being laid out similarly to an imageboard's catalog feature.

Controversies

Livestreams

Pump used to operate a livestreaming feature that allowed token developers to advertise their tokens to other users. The feature quickly became controversial not long after release, as a number of token creators began to partake in increasingly extreme actions to attract potential investors to their token, prompting the platform to indefinitely disable the feature after major community backlash and news articles. Some streamers claimed to be live from U.S. prisons, ran live sex shows or Russian roulette games. One streamer threatened to waterboard another person.

The removal of the livestream feature caused a sharp decline in platform activity, with daily token creation dropping by 50 percent, and active users falling by 69 percent by the end of November 2024. The site's revenues also fell below $2 million for the first time in weeks.

Rug pulls and Scams

The site has been host to various scams, including rug pulls. A notable example is "Gen Z Quant", a token made on the platform by a 13-year old who publicized it through pump.fun's streaming service before dumping his holdings onto the market (roughly 5% of the total supply of the token) and abandoning the token after reaching a $1 million market cap, earning $50,000. This angered many of the platform's users, prompting the community to pump the token in revenge to an US$85 million market cap, as well as to dox the creator's name, home address and school. The ensuing outrage later received media attention.

Withdrawal from the United Kingdom

In December 2024, the site banned all users from the United Kingdom, following a warning from the Financial Conduct Authority about operating without proper authorization.

References

  1. "WHOIS search results". www.godaddy.com. Retrieved 23 December 2024.
  2. @pumpdotfun (19 January 2024). "Launch a coin and begin trading it in under 1 minute without having to seed liquidity for a cost of < $2" (Tweet) – via Twitter.
  3. "pump.fun". dune.com. Retrieved 2024-12-26.
  4. Yaffe-Bellany, David (2024-07-27). "A Digital Coin Based on Baby Trump? Yup". The New York Times. Retrieved 2024-12-26.
  5. ^ Gault, Matthew (2024-11-25). "Pump.fun Is All of the Internet's Worst Impulses on One Site". Gizmodo. Retrieved 2024-12-26.
  6. "Pump.fun Teases Future Token and Reveals New Trading Terminal". finance.yahoo.com. Archived from the original on 2024-12-09. Retrieved 2024-12-26.
  7. "Pump.Fun's Removal of $2 Issuance Charge Pushes Daily Fees to All-Time Highs, But Users are Unhappy". finance.yahoo.com. Archived from the original on 2024-12-09. Retrieved 2024-12-26.
  8. Shen, Muyao (2024-07-12). "Pump.fun, Crypto's '4chan,' Attracts Iggy Azalea and 1 Million Memecoins". www.bloomberg.com. Retrieved 2024-12-26.
  9. ^ Nicolle, Emily (2024-11-26). "Pump.fun's Streams Show the Dark Side of Memecoin Trading". Bloomberg. Retrieved 2024-12-26.
  10. Gault, Matthew (2024-11-26). "Pump.fun Shuts Down Its Bonkers Live Streaming Service". Gizmodo. Retrieved 2024-12-26.
  11. WIRED (2024-12-07). "Teen creates memecoin, dumps it, earns $50,000". Ars Technica. Retrieved 2024-12-26.
  12. Katie Wickens (2024-12-11). "13-year-old that made a killing creating a crypto and then dumping it gets 'revenge pumped', family doxxed, and even dognapping rumours emerge". PC Gamer. Retrieved 2024-12-26.
  13. Khalili, Joel. "A Kid Made $50,000 Dumping Crypto He'd Created. Then Came the Backlash". Wired. ISSN 1059-1028. Retrieved 2024-12-26.
  14. "Memecoin Factory Pump.Fun Bans U.K. Crypto Traders". CoinDesk. Retrieved 2024-12-26.

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