What is Pump.fun

Pump.fun was trending when celebrity coins came into the crypto market. It is a Solana-based platform allowing users to create and trade tokens, especially “memecoins.” These tokens usually have no value beyond their humor and community engagement. This article covers what Pump.Fun is all about and essential points you should always remember.

Let’s see how pump.fun works.

How to Trade Memecoins on Pump.fun

Trading memecoins on Pump.fun is an easy task. When you visit the app, you’ll see new memecoins. You can connect your Solana wallet like Phantom by clicking the top-right button. When you see a token that interests you, click on it, and you’ll see details like its price chart, recent trades, user comments, and the option to buy or sell.

Unlike traditional order books, tokens on Pump.fun use a bonding curve. This means as more people buy a token, its price increases along a curve. This model rewards early buyers if the token becomes popular.

If a token reaches a market cap of $69,000, it gets listed on the Solana-based decentralized exchange Raydium. Then, they deposit $12,000 worth of the token and burn it. Pump.fun charges a 1% fee on swaps and a 2 SOL bonus if the token gets listed on Raydium.

Remember that memecoins often have low liquidity, and prices can drop over time. Considering this factor, you should only invest what you can afford to lose. Pump.fun has also had a total daily revenue of $5.3 million in the past few days, competing with Ethereum and other big protocols.

How to Create Memecoins on Pump.fun

Starting your memecoin on the app is quick and straightforward. You do not need lengthy procedures to get your memecoins out there.

• Choose a catchy name and image.
• Click on the ‘start a new coin’ option on the Pump.fun web page
• Add details of your token and links to socials
• To launch it, pay a fee of 0.02 SOL (That’s around $3)
• Your memecoin is live and up for trading.

It is all an easy process. You only need to follow the procedures and launch your memecoin.

Pump.fun, is it safe or not?

Unlike other token-launching platforms, Pump.fun doesn’t provide insider allocation. It prevents presales and insider distributions of tokens, but that doesn’t mean it is free of risks. A former employee exploited Pump.fun for over $2 million. Additionally, Pump.fun’s code isn’t publicly available for random security checks.

Pump.fun claims it launches all tokens without presales or team allocations. But there’s still a chance that early buyers or insiders could buy a significant amount of the token, hoping to sell it at a higher price when demand rises. 

Remember, trading memecoins is like gambling. Only risk money you’re prepared to lose.

Trading on Pump.fun

There are two ways to trade memecoins on Pump.fun:

Using Telegram Trading Bots OR

Telegram is a messaging app that makes the trading process more accessible. It’s also integrating with the TON Network. You get to connect your wallet, add funds to your wallet, and buy your preferred memecoin. There are several telegram bots, but Trojan or Banana Gun Bot on Solana have started supporting Pump.fun tokens. You should check them out. Trading with these bots simplifies trading because of its user-centric nature.

Through Pump.fun’s Web App

Go to any token page on Pump.fun, set the amount you want to trade, and complete your trade. Using Pump.fun web app is simple; you can use what works best. You only have to be cautious and check early transactions to see the percentage bought right after launch. If there was a large buy right after the launch, it could be an insider looking to sell at a profit.

Conclusion

Now that you know how to trade and create tokens on Pump.fun, you can jump into the Solana memecoin craze. Use Telegram trading bots to trade tokens on Pump.fun for faster trades. Whichever route you take, remember to be careful with memecoins—they are speculative assets.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

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