What is Pump.fun (PUMP)?
Pump.fun is the leading meme coin launchpad on Solana, enabling anyone to create and launch tokens with just a name, ticker, and image. The PUMP token, launched in April 2025, is the platform's governance and utility token. Through its bonding curve mechanism, Pump.fun has facilitated the creation of millions of tokens and become one of the highest-revenue DeFi protocols on Solana.
Key Facts
What is Pump.fun?
Pump.fun is a token launchpad platform built on Solana that has fundamentally changed how meme coins are created and traded. By dramatically lowering the barriers to token creation — requiring just a name, ticker, and image with minimal cost — the platform has become the epicenter of Solana's meme coin culture.
The platform's signature feature is its bonding curve mechanism. Each new token starts with an automated pricing formula where the price rises as more people buy. This eliminates the need for developers to provide initial liquidity, which was a major barrier (and rug pull vector) in traditional token launches.
The PUMP token was launched in April 2025 as the platform's governance and utility token, distributed through a massive airdrop to historical platform users. PUMP holders can stake tokens to participate in governance decisions and earn a share of the platform's substantial revenue from token creation fees and trading.
Who Created Pump.fun?
Platform Origins
Pump.fun was created by a team of developers who recognized the opportunity to simplify meme coin creation on Solana. The platform launched in January 2024 during a surge of meme coin activity on Solana. Unlike many crypto projects, the Pump.fun team initially maintained relative anonymity, letting the product speak for itself as it rapidly grew to become the most-used token launchpad in crypto.
Explosive Growth
Within months of launching, Pump.fun became one of the highest-revenue protocols on Solana, at times generating more daily fees than the Solana network itself. The platform facilitated the creation of millions of tokens, though the vast majority quickly lost all value. This success attracted both praise for its innovation and criticism regarding the speculative nature of most launched tokens.
Key Milestones
- • Jan 2024: Pump.fun platform launches on Solana
- • Mid 2024: Platform becomes highest-revenue protocol on Solana at times
- • Late 2024: Millions of tokens created; platform revenue exceeds $100M cumulative
- • Apr 2025: PUMP governance token launched via massive airdrop
How Pump.fun Works
Pump.fun uses a simple but effective mechanism to enable permissionless token creation and fair price discovery.
Bonding Curve Pricing
When someone creates a token on Pump.fun, it is immediately tradeable on a bonding curve. The curve is a mathematical formula that determines the token price based on supply — as more tokens are bought, the price increases along the curve. Sellers can sell back into the curve at any time. This means tokens have immediate liquidity without requiring the creator to provide any initial capital.
The bonding curve also means the creator cannot 'rug pull' by draining a liquidity pool, as there is no traditional pool to drain.
DEX Migration
When a token on the bonding curve reaches a market cap threshold (historically around $69,000), Pump.fun automatically migrates the token's liquidity to Raydium, a major Solana DEX. At this point, the bonding curve ends and the token trades normally on the open market. This migration event is often called 'graduation' and is seen as a validation milestone for newly created tokens.
Only a tiny fraction of all tokens created on Pump.fun ever reach this threshold.
Platform Revenue
Pump.fun generates revenue from small fees on each token creation and on trades along the bonding curve. Despite these small per-transaction fees, the enormous volume of activity has made Pump.fun one of the most profitable protocols in all of DeFi. This revenue is significant because PUMP token stakers can earn a share of it through the governance staking mechanism.
Pump.fun vs Traditional DEX Launches
Pump.fun has changed the token launch paradigm compared to traditional decentralized exchange listings:
| Feature | Pump.fun | Traditional DEX Launch |
|---|---|---|
| Launch Cost | Minimal (< $2) | $5,000+ (liquidity required) |
| Initial Liquidity | Bonding curve (no LP needed) | Creator must provide liquidity pool |
| Rug Pull Risk | Low (no LP to drain) | High (creator can pull LP) |
| Time to Launch | Seconds | Hours to days |
Pump.fun's bonding curve model eliminates the rug pull vector that plagued traditional meme coin launches. However, it introduces its own risk: most tokens created on the platform are highly speculative and lose nearly all value. The ease of creation means the vast majority of tokens have no lasting value or community — always exercise extreme caution when trading newly created tokens.
Why PUMP Has Value
PUMP's value is directly tied to the success and revenue of the Pump.fun platform. As the governance token, PUMP stakers can vote on platform decisions and earn a share of protocol revenue. Given that Pump.fun has generated hundreds of millions in cumulative revenue, this revenue-sharing mechanism provides tangible utility.
The platform has demonstrated strong product-market fit as the dominant meme coin launchpad. Pump.fun's first-mover advantage, brand recognition, and integration with the Solana ecosystem create network effects that are difficult for competitors to replicate.
However, PUMP's value is closely tied to the continuation of meme coin trading activity on Solana. If meme coin culture fades or regulatory pressure increases, platform revenue could decline significantly. The token is also relatively new, with price discovery still in early stages.
How to Buy PUMP
PUMP tokens can be purchased on cryptocurrency exchanges and Solana-based DEXs. Here is how:
1Compare providers
Check which exchanges list PUMP on coinvela. Given PUMP's Solana origins, it may be more readily available on Solana-native DEXs like Jupiter and Raydium than on centralized exchanges initially.
2Create an account
If using a centralized exchange, create an account and complete identity verification (KYC). For DEXs, you will need a Solana wallet like Phantom or Solflare with SOL for gas fees.
3Fund your account
Fund your account with fiat currency (for centralized exchanges) or SOL tokens (for DEXs). If using a DEX, you can buy SOL on a centralized exchange first and transfer it to your Solana wallet.
4Buy PUMP
On a centralized exchange, search for PUMP and place your order. On a DEX like Jupiter, connect your Solana wallet, select PUMP as the output token, enter the SOL amount to swap, and confirm the transaction.
5Secure Your PUMP
If you bought on a centralized exchange, consider withdrawing to a Solana wallet you control. On DEXs, your PUMP tokens are already in your connected wallet. Consider using a hardware wallet for larger amounts.
Next step: Compare PUMP prices across exchanges to find the best price.
How to Store PUMP
Wallet Options
PUMP is a Solana SPL token and can be stored in any Solana-compatible wallet:
- • Software wallets: Phantom, Solflare, and Backpack are popular Solana wallets. These are free, easy to use, and support all SPL tokens including PUMP.
- • Hardware wallets: Ledger devices support Solana SPL tokens when connected to a software wallet like Phantom. Best for securing larger amounts.
- • Exchange wallets: Keep PUMP on the exchange for easy trading. Convenient but you don't control the private keys.
Hardware Wallets
For maximum security, store your PUMP tokens using a Ledger hardware wallet connected to Phantom or Solflare. This keeps your private keys offline while still allowing you to manage your SPL tokens through a familiar interface.
Protect Your Recovery Phrase
Your wallet's recovery phrase is the master key to all your Solana tokens including PUMP. Write it down on paper, store it in a secure location, and never share it digitally. If you lose your device, the recovery phrase is the only way to restore access.
How to Use Pump.fun (PUMP)
Platform Governance
PUMP token holders can participate in governance decisions about the Pump.fun platform. This includes votes on fee structures, revenue distribution, feature development, and platform policies. Governance gives token holders a voice in how the platform evolves.
Revenue Sharing via Staking
By staking PUMP tokens, holders can earn a share of Pump.fun's platform revenue. The platform generates fees from token creation and trading activity along bonding curves. Staking rewards are distributed proportionally to staked PUMP holdings.
Trading
PUMP can be traded on centralized and decentralized exchanges. Traders may take positions based on Pump.fun's platform activity metrics, Solana ecosystem trends, or broader meme coin market sentiment.
Risks
PUMP carries significant risks. Its value is tied to meme coin trading activity on Solana, which is highly cyclical and sentiment-driven. Regulatory action against meme coin platforms could impact the protocol. The token is relatively new with limited price history. Most importantly, meme coin culture is inherently speculative — never invest more than you can afford to lose entirely.
Key People Behind Pump.fun
Pump.fun's team has been relatively anonymous, but the broader Solana ecosystem has key figures:
Pump.fun Team
The anonymous founding team created one of the most successful DeFi applications on Solana. Despite maintaining low public profiles, they built a platform that generated more revenue than many established DeFi protocols, demonstrating strong product development and understanding of meme coin market dynamics.
Solana Ecosystem
Pump.fun's success is built on Solana's high-speed, low-cost infrastructure. The Solana ecosystem, led by Anatoly Yakovenko and Raj Gokal, provided the technical foundation that makes instant token creation and trading feasible at scale. The symbiotic relationship between Pump.fun and Solana drives activity on both platforms.
Regulation Overview for PUMP
Regulatory Landscape
Meme coin launchpads occupy a regulatory grey area. Pump.fun enables the creation of tokens that could be viewed as unregistered securities in some jurisdictions, though the platform itself functions as a neutral protocol.
The PUMP governance token's classification depends on jurisdiction — it may be treated as a utility token, governance token, or potentially a security depending on local regulations.
Regulation by Jurisdiction
Regulation of meme coin platforms and their tokens varies:
United States: The SEC has increased scrutiny of token launchpads and meme coins. While PUMP itself may be available on US-accessible exchanges, the legality of token creation on the platform for US users is unclear. US users should consult legal advice and report any gains for tax purposes.
Canada: Canadian regulators have been cautious with novel crypto tokens. PUMP availability in Canada depends on exchange listings that comply with CSA requirements. Canadian tax obligations apply to all crypto gains.
Australia: ASIC has warned consumers about speculative crypto assets including meme coins. PUMP is subject to Australian tax rules for crypto assets. Australians should exercise particular caution with meme coin-related tokens.
The regulatory environment for meme coin platforms is evolving rapidly. Pump.fun's decentralized nature provides some insulation from direct regulatory action, but the broader regulatory direction toward meme coins and token launchpads could impact the platform's growth and PUMP's value. Always stay informed about current regulations in your jurisdiction.
FAQs About Pump.fun (PUMP)
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