Memecoins Can Now Be Created For Free on Pump.fun
The post Memecoins Can Now Be Created For Free on Pump.fun appeared on BitcoinEthereumNews.com.
The memecoin launchpad will also pay out 0.5 SOL to coin creators when tokens successfully migrate to Raydium. Memecoin creators on launchpad Pump.fun can now receive 0.50 SOL ($80) if their tokens make it to Raydium, a Solana-based decentralized exchange (DEX), after completing their bonding curves. On Thursday, the platform said it had made it free to create coins by waiving the initial $2 fee. Instead, the first buyer of the new token will now pay this fee. According to Pump.fun, this change “unlocks the use case of someone creating a coin without buying any of its supply.” Pump.fun utilizes a bonding curve mechanism for launching and trading tokens, designed to facilitate fair access to new coins without the typical pre-sale advantages often seen in crypto projects. Once a token reaches a market cap of $69,000, it qualifies for listing on Raydium, and a liquidity pool is created, allowing for broader trading beyond the Pump.fun platform. After Pump.fun tokens go live on Raydium, the liquidity provider (LP) tokens are automatically burned, effectively locking the liquidity and guaranteeing that tokens can’t become entirely illiquid, even if their prices drop significantly. Unlike traditional trading platforms that rely on order books, the bonding curve sets prices based on a predefined mathematical formula. As more tokens are purchased, the price of each subsequent token increases. The price increases exponentially, making the tokens more valuable as demand rises. It should be noted that Pump.fun has a low success rate for tokens reaching Raydium, with 99% of coins failing to achieve the milestone. Cash Cow In May, Pump.fun became the second-largest revenue-generating platform across crypto, raking in $3.38 million over a week, surpassed only by the Ethereum network. In July, Pump.fun frequently surpassed $1 million in daily revenue. The peak was on July 30, when the…
Filed under: News - @ August 10, 2024 10:28 am