Pump.fun Analysis: How to Create Your Own Meme Coin?

A Meme Coin Carnival

If you follow the crypto market, you’ve definitely heard of Pump.fun. This platform, built on the Solana blockchain, has become a paradise for meme coin enthusiasts. By November 2024, over 3.85 million meme coins have been created here, generating more than 1.48 million SOL in revenue—equivalent to about $355 million. The average daily fee income exceeds $3 million. What does this number tell us? It indicates that more and more people are participating in the creation and trading of meme coins here.

What exactly is Pump.fun?

Simply put, Pump.fun allows anyone to quickly create their own tokens without requiring complex technical skills. The platform uses a curve bond pricing model, dynamically adjusting token prices based on real-time buy and sell demand, acting like an automatic, fair matching engine.

Since launching on Solana in January 2024, the platform has attracted significant attention. In April, it expanded to Ethereum’s Layer 2 network Base, further broadening its user base. It is backed by Alliance DAO and has become one of the most profitable applications in the DeFi ecosystem.

Pump.fun’s appeal lies in its simple, user-friendly interface, low fees, and robust anti-fraud mechanisms. These features attract participants ranging from crypto newcomers to seasoned traders.

How easy is it to create a meme coin?

Creating your own meme coin on Pump.fun is straightforward:

Very low cost: Just pay about 0.02 SOL (around $3) for deployment, and your idea becomes a tradable token. This low barrier makes it accessible to almost anyone.

Fast process: Name → choose token symbol → upload an image → pay for deployment. Done in minutes, your token is immediately tradable.

Equal opportunity mechanism: No pre-sales, no team allocations. All tokens start on equal footing, known as a “fair launch.”

Instant trading: Once created, tokens can be traded immediately—no need to wait for liquidity to build up.

How does the curve bond mechanism work?

This is the core innovation of Pump.fun. When a new token is created, an initial supply of 800 million tokens enters the bond curve. As more people buy, the price rises exponentially along the curve. Early buyers benefit from lower prices, giving them an advantage.

Critical threshold: When the market cap reaches $69,000, the system automatically injects $12,000 liquidity into Raydium DEX and burns the corresponding LP tokens. This mechanism helps stabilize the market and prevents price manipulation by individuals.

Subsequently, well-performing meme coins will gradually list on other DEXs, and possibly eventually on centralized exchanges.

Supported blockchains

Solana: Initially the main platform, known for its high-speed transactions and low fees.

Base (Ethereum Layer 2): Added support this year, expanding the user base.

Blast: Recently joined, further expanding coverage.

Multi-chain support allows users from different ecosystems to participate in meme coin creation.

The logic behind successful cases

Peanut the Squirrel (PNUT)

This squirrel sparked a craze in the meme coin community, once reaching a market cap of over $1.8 billion. Its success lies not only in its adorable theme but also in integrating game mechanics and NFT collection features. Users can unlock NFTs through game achievements, fostering a highly sticky community. Currently valued at over $1.1 billion, with a daily trading volume of $1.3 billion, it demonstrates sustained market enthusiasm. Viral social media spread and KOL collaborations further fueled its rise.

Goatseus Maximus (GOAT)

The concept of “the greatest ever” captured market imagination. This token advanced further by incorporating AI-generated content features, allowing users to create AI-driven memes. Innovative staking mechanisms, cross-platform compatibility, and gamified reward systems have solidified its position. Since launch, the token has surged 620%, with a market cap once exceeding $1.3 billion, now stabilized at around $760 million. It exemplifies a new trend: meme coin + AI tools = new value proposition.

Just a Chill Guy (CHILLGUY)

This project went viral thanks to TikTok. Its relaxed and friendly branding was perfectly spread through short videos, with #CHILLGUYChallenge accumulating millions of views within weeks. Its market cap once exceeded $543 million, showcasing the huge promotional power of social media. Cultural relevance × community engagement × targeted marketing—this combination is deadly.

Step-by-step guide to creating your meme coin

Step 1: Connect your wallet

Visit Pump.fun, use Solana-compatible wallets like Phantom or Solflare. Click the wallet connect button at the top right, authorize the Web3 connection. Make sure your account has enough SOL for deployment fees.

Step 2: Create a token

Click “Start a new coin,” fill in the token name, symbol, description, upload a token image. Pay the 0.02 SOL deployment fee, and you’re done.

Step 3: Purchase the token

Browse the token list on the homepage, select a project of interest to view details: price trends, discussion comments, recent transactions. Use the curve bond mechanism to buy, with prices determined by the real-time market.

Step 4: Sell for profit

You can sell your tokens at any time. The curve bond will set the selling price based on current demand. The flexible entry and exit mechanism allows quick profit-taking or stop-loss.

Step 5: Wait for market cap breakthrough

Once the market cap surpasses $69,000, Pump.fun automatically adds liquidity on Raydium, and the token enters broader DEX trading pools. This marks the token’s maturity.

Why is Pump.fun so popular?

Democratized creation: The cost of 0.02 SOL enables everyone to try their ideas without coding skills.

Clear profit mechanism: Successful cases (PNUT reaching $1.8 billion market cap, GOAT up 620%) motivate more participation.

Fair rules: No pre-sale, no insider allocations—everyone starts equally.

Real-time trading: Tokens can be traded seconds after creation—no long waiting periods.

Solana’s advantages: Low fees and high speed provide the perfect infrastructure.

Risks that cannot be ignored

Extreme price volatility: Meme coins are highly speculative; prices can skyrocket or crash in a short time. A hot news event can swing prices dramatically, posing huge risks.

Rug pull risk: Despite protective measures, some developers may run away after accumulating enough liquidity. Caution and background checks are necessary.

Lack of liquidity: Many small meme coins lack sufficient liquidity, leading to severe slippage on large trades and affecting trading efficiency.

Content moderation issues: The platform was once embroiled in controversy after live streaming was used for inappropriate content (violence, abuse, etc.), leading to a suspension of live features on November 25. This reflects the regulatory challenges of decentralized platforms.

Regulatory uncertainty: NSFW content linked to token investments may breach legal boundaries; lack of age verification also poses compliance risks.

Historical security incidents: In May 2024, a major event occurred—an ex-employee exploited a flash loan vulnerability to manipulate the curve bond, causing losses of about $2 million. This exposed security flaws in the platform.

Pump.fun’s security design

Fair launch policy: No pre-sales or team allocations, minimizing insider advantages.

Liquidity destruction: When market cap hits $69,000, part of the liquidity is burned, enhancing market stability and confidence.

No-code creation: Simple interface lowers technical barriers but also increases regulatory risks.

Confronting real issues

Closed-source risks: Pump.fun’s code and APIs are proprietary, preventing independent security audits. This means internal vulnerabilities might be discovered later.

Limitations of fair launch: The seemingly fair mechanism cannot prevent large whales from coordinating pump-and-dump schemes. The curve bond model can also be exploited by high-frequency trading or flash loans.

Platform governance challenges: Incidents of live stream abuse show that full decentralization still requires manual moderation, which is a huge operational burden for a rapidly growing platform.

Why is the meme coin ecosystem still exploding?

1. Wealth effect: Early participants’ huge returns fuel FOMO. PNUT reaching $1.8 billion, GOAT’s 620% surge—these success stories are highly tempting.

2. Low participation barrier: Creating a token for just $3 makes anyone a “project owner.” This democratization radically changes traditional financial power structures.

3. Social-driven: Viral spread on TikTok, Twitter, Discord makes meme coin success increasingly dependent on cultural influence rather than technological innovation.

4. Gamification trend: Meme coins are gradually integrating gaming mechanics and NFT features, becoming more sticky products.

5. Regulatory gray area: Before strict regulations arrive, this space still offers many opportunities.

Looking ahead: the future of Pump.fun

Experts expect continued innovation:

• Support for more blockchains: Potential expansion to ecosystems like Polygon, Arbitrum, etc.
• Community incentive programs: Attracting and retaining active users through rewards.
• Enhanced security audits: Establishing more transparent verification mechanisms to rebuild trust.
• Gamification upgrades: Expect more features integrating gaming and DeFi interactions.

However, challenges remain: the biggest is how to maintain openness while preventing abuse. Regulatory pressures will increase gradually, and Pump.fun will need to balance innovation with compliance.

Final recommendations

Pump.fun indeed lowers the barrier for creating meme coins, but this also entails risks. If you want to participate:

1. Start small—treat it as an experiment, not an investment.
2. Conduct thorough research on any project you consider buying—look into team background, community activity, use cases.
3. Understand what you’re betting on—most often, it’s about hype and cultural trends, not the project fundamentals.
4. Always remember: high returns come with high risks. The most you can lose is your invested capital.

Pump.fun has become a core infrastructure in the meme coin ecosystem. Its existence signifies an important shift in the crypto market—from elite-driven creation to mass participation. The future depends on whether this ecosystem can grow healthily while expanding.