The meme Token craze sweeps the market, Pump.fun leads a new round of "national coin issuing" era

With the development of the cryptocurrency market, internet culture and Meme coins have played an important role in it. However, the high-risk characteristics of Meme coins make it difficult for most investors to profit from them, and they are more likely to suffer significant losses. This situation has made value investment in the Meme market unreliable, leading to excessive speculation.

Nevertheless, the traffic attribute inherent in Meme has become an indispensable part of the development of public chains. Therefore, maintaining the fairness of the Meme market has become an important topic in this bull market. As the largest Meme launching platform in the Solana ecosystem, Pump.fun has recently attracted widespread attention in the market. Pump.fun continues the narrative of fairness, supporting users to deploy and issue Tokens at a very low cost (0.02 SOL) without any development experience. Since its launch in January this year, Pump.fun has issued over 460,000 Tokens, leading the Meme coin track into a new phase of "mass coin issuance."

Introduction and Features of Pump.fun

Pump.fun is a tool and community platform focused on issuing Meme coins. It was launched on Solana in January 2024, and later added support for Ethereum L2 Blast. Pump.fun simplifies the process of issuing coins and lowers the technical barrier, providing users with a simple and low-cost way to deploy and issue Tokens.

The main features of Pump.fun include:

1. Extremely low coin issuance cost: Anyone can deploy their own Meme Token at a cost of less than $2.
2. No need to seed liquidity: The system will automatically establish an initial liquidity pool for the newly issued Token on the DEX.
3. Automated process: Once the market value of the new Token reaches $60,000, the system will automatically inject all buying funds into the liquidity pool and launch trading on Rayium Swap.
4. Waiver of Minting Rights: The creator waives the minting rights when deploying the Token, and all Tokens are issued at the time of creation.
5. Fair Distribution: Since the creator cannot reserve tokens, all tokens enter the public market at the time of creation, with no hidden wallets.
6. High risk and high reward: The prices of Meme Tokens on Pump.fun fluctuate greatly, with serious PUMP&DUMP phenomena. The risks are high, but there may also be substantial returns.

The Reasons for Pump.fun's Success

The success of Pump.fun can be attributed to the following points:

1. Meet market demand: With the rapid increase in interest in internet culture and Meme coins, many investors wish to launch their own Tokens, but often lack the necessary technical knowledge. Pump.fun provides them with an easy-to-use platform.

2. Fair and Transparent: By offering extremely low issue coin costs and a simplified process, Pump.fun meets the needs of ordinary investors to participate, while making the entire issue coin process more open and transparent.

3. Eliminate super permissions: The creator automatically relinquishes the minting rights when deploying the Token, which reduces the risk of RUG issues caused by super permissions.

4. Social Attributes: Pump.fun combines issuing coins with social functions, allowing users to communicate with each other on the platform, enhancing the project's dissemination and interactivity.

5. High Return Potential: Despite the high risks, the tokens on Pump.fun still have the potential to yield significant returns, attracting numerous investors.

Risks and Challenges of Pump.fun

Although Pump.fun has made improvements in fairness and transparency, it still faces some risks and challenges:

1. A large number of garbage coins: Due to the lowered threshold for issuing coins, the number of tokens generated daily has surged, most of which may be worthless garbage coins.

2. Information asymmetry: Investors find it difficult to assess the true value of the Token from limited information and are easily misled.

3. Misinformation: Some individuals may exploit forged social information or celebrity effects to attract investors for quick harvesting.

4. Highly speculative: The Token prices on Pump.fun fluctuate greatly, resembling a high-risk gambling platform rather than a traditional investment tool.

National Coin Issuance Craze

The success of Pump.fun has triggered a nationwide craze for issuing coins. Currently, the Solana network issues an average of 14,000 new tokens every day, most of which come from Pump.fun. In addition, there are also some similar platforms emerging on different blockchains:

1. We.rich: Operates on the Base chain, draws on the model of Pump.fun, and adds more features and optimizes the user interface.

2. Rug.fun: Operating on the Base chain, it adopts more aggressive rules, adding competitive and gambling elements.

3. Friend.tech: A decentralized social platform that allows users to create tokens linked to their social reputation.

The emergence of these platforms signifies that the Meme coin sector is entering a new stage of "mass coin issuance", bringing new opportunities and challenges to the crypto market. However, investors need to remain highly vigilant when participating in these platforms and recognize the high-risk nature inherent within.