EXTREME RISK WARNING: Most People Lose Money
Over 95% of meme coins launched on Pump.fun go to zero. Research shows only ~3% of traders profit more than $1,000. Meme coin trading is essentially gambling. Never invest money you cannot afford to lose completely. This guide is educational only -- not financial advice.
Pump.fun: The Complete Guide to Solana's Meme Coin Launchpad
Everything you need to know about Pump.fun -- how it works, how to create and trade tokens, the bonding curve mechanism, revenue model, PumpSwap DEX, risks, scams, and how to protect yourself in the meme coin casino.
What is Pump.fun?
Pump.fun is a meme coin launchpad built on the Solana blockchain that allows anyone to create and trade tokens in seconds. Launched in January 2024, it has become the single largest driver of activity on the Solana network, with millions of tokens created and billions of dollars in trading volume.
The platform uses a bonding curve mechanism that provides instant liquidity for newly created tokens. There are no presales, no team allocations, and no complex tokenomics -- just a simple curve where early buyers get lower prices. When enough buying pressure pushes the market cap to approximately $69,000, the token "graduates" and migrates to a DEX with full liquidity.
Tokens Created
Peak Daily Revenue
Tokens That Graduate
How the Bonding Curve Works
The bonding curve is the core innovation behind Pump.fun. It is a mathematical formula that automatically sets the price of a token based on supply. The more tokens are bought, the higher the price goes. The less tokens remain on the curve, the more expensive each subsequent token becomes. Here is how the lifecycle works:
create
bondingActive
threshold
migration
Key Concept: The bonding curve ensures that the first buyers always get the lowest prices. However, this also means sniper bots that buy in the first milliseconds have a massive advantage over manual buyers. By the time you see a new token and decide to buy, bots may have already pushed the price up significantly.
How to Create a Token on Pump.fun
Creating a token on Pump.fun is deliberately simple -- it takes less than 2 minutes and costs only ~0.02 SOL. This low barrier has led to millions of tokens being created, though the vast majority fail.
visitSite
connectPhantom
fillDetails
setSupply
payFee
launch
How to Buy & Sell Tokens on Pump.fun
Trading on Pump.fun is straightforward but extremely risky. Here is the step-by-step process for buying and selling meme coins on the platform. Always start with very small amounts until you understand the mechanics.
connectWallet
fundSol
browse
buy
monitor
sell
Pump.fun Revenue Model & Fees
Pump.fun has become one of the most profitable protocols in DeFi. The platform generates revenue through trading fees on the bonding curve and migration fees when tokens graduate to DEX. At its peak, Pump.fun was earning more daily revenue than most major DeFi protocols combined.
Fee Structure
- 1% trading fee on all bonding curve transactions
- ~0.02 SOL token creation fee
- 6 SOL migration fee when token graduates to Raydium/PumpSwap
Revenue Highlights
- $2M+ daily revenue at peak (November 2024)
- More revenue than Uniswap at certain periods
- Hundreds of millions in cumulative revenue since launch
PumpSwap: Pump.fun's Own DEX
In March 2025, Pump.fun launched PumpSwap, its own decentralized exchange. Previously, tokens that graduated from the bonding curve would migrate to Raydium, meaning Pump.fun lost all trading fees after graduation. PumpSwap changes this by keeping the entire lifecycle within the Pump.fun ecosystem.
PumpSwap operates as a standard automated market maker (AMM) with liquidity pools. The migration from bonding curve to PumpSwap is instant and free for token creators. This move significantly increased Pump.fun's revenue potential and created a more seamless trading experience for users.
Instant Migration
Tokens seamlessly migrate from bonding curve to PumpSwap liquidity pools without any manual steps.
Creator Revenue Share
Token creators can earn a share of trading fees generated on PumpSwap, incentivizing long-term project development.
Full Ecosystem
Create, trade, and provide liquidity all within the Pump.fun ecosystem -- no need to switch between platforms.
Notable Success Stories & Failures
While the vast majority of Pump.fun tokens fail, some have achieved remarkable success. Understanding both the winners and losers helps illustrate the extreme risk/reward profile of meme coin trading.
| Token | Result | Peak Market Cap | Outcome |
|---|---|---|---|
| BONK | Success | $2.2B | Listed on Binance, major Solana meme coin |
| WIF (dogwifhat) | Success | $4.8B | Became top 100 crypto, listed on CEXs |
| POPCAT | Success | $1.5B | Massive rally, Solana meme coin staple |
| SLERF | Failure | $500M | Developer accidentally burned LP tokens |
| Countless rugs | Failure | Various | 95%+ of Pump.fun tokens go to zero |
Survivor Bias Warning: For every BONK or WIF success story, there are tens of thousands of tokens that went to zero within hours. The success stories are amplified on social media while the millions of losses are silently endured. Do not let survivor bias cloud your judgment.
Risks & Scams to Watch Out For
The meme coin space is rife with scams and manipulative tactics. Understanding these common attack vectors is essential before risking any funds. Even experienced traders regularly fall victim to sophisticated schemes.
rugPull
sniperBots
honeypot
fakeInfluencer
insiderTrading
copycat
Migration to Raydium / PumpSwap DEX
When a token on Pump.fun reaches approximately $69,000 in market cap through bonding curve purchases, it "graduates" and migrates to a DEX. Initially, all tokens migrated to Raydium, the leading Solana DEX. Since the launch of PumpSwap in March 2025, new tokens now migrate to PumpSwap by default.
The graduation process is significant because it transitions the token from a controlled bonding curve environment to an open market with full liquidity pool mechanics. This is often when the biggest price volatility occurs -- some tokens pump 10x+ after graduation while others immediately dump as early buyers take profits.
Migration Process
Pump.fun's Impact on the Solana Ecosystem
Pump.fun has fundamentally transformed the Solana ecosystem. It has driven massive transaction volume, onboarded millions of new users, and made Solana the de facto chain for meme coin activity. However, this has come with both benefits and significant downsides.
Positive Impact
- Drove Solana to record transaction volumes and network activity
- Onboarded millions of new users to Solana wallets and DApps
- Significant SOL burn from transaction fees, benefiting SOL holders
- Proved Solana's high-throughput capabilities with real demand
Negative Impact
- Led to billions in losses for retail traders chasing meme coins
- Network spam and congestion from bot activity during peak periods
- Attracted regulatory attention and damaged crypto's reputation
- Enabled widespread scam activity, rug pulls, and pump-and-dumps
Alternatives to Pump.fun
Pump.fun's success has spawned numerous competitors across different blockchains. While Pump.fun remains the dominant meme coin launchpad, these alternatives offer similar functionality with varying features and fee structures.
Moonshot
SolanaMobile-first meme coin trading app by DEX Screener
ape.store
Multi-chainMeme coin launchpad on multiple chains
sun.pump
TronTron-based meme coin launchpad by Sun.io
four.meme
BSCMeme coin launchpad on BNB Smart Chain
Safety Tips for Meme Coin Trading
If you choose to trade meme coins despite the risks, follow these essential safety practices to minimize your exposure to scams and losses. Remember: the best way to avoid losing money in meme coins is to not trade them at all.
Buy SOL on Top Exchanges
Need SOL to interact with Pump.fun or the Solana ecosystem? Purchase SOL on these trusted exchanges with exclusive fee discounts through our referral codes.
Frequently Asked Questions
CRITICAL RISK DISCLAIMER -- READ BEFORE TRADING MEME COINS
- 1.Over 95% of meme coins launched on Pump.fun go to zero. The overwhelming majority of traders lose money.
- 2.Research shows only approximately 3% of Pump.fun traders have ever made more than $1,000 in profit. For most participants, this is a losing proposition.
- 3.Meme coins have zero fundamental value. Their price is driven entirely by speculation, hype, and manipulation. There is no underlying business, revenue, or technology backing these tokens.
- 4.Sniper bots, insider trading, and market manipulation are rampant. As a retail trader, you are at a systematic disadvantage against sophisticated actors.
- 5.Rug pulls and scams are extremely common. Developers can and do abandon projects or extract liquidity without warning.
- 6.Never invest money you cannot afford to lose completely. Treat any funds used for meme coin trading as already lost.
- 7.This article is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Always do your own research.
Related Articles
Trade Smarter with Discounted Fees
Whether you are buying SOL for Solana DeFi, trading meme coins, or building a long-term crypto portfolio, get 20% off all trading fees on Binance with our exclusive referral code.
This article is for informational and educational purposes only. Meme coin trading involves extreme risk of total loss. Over 95% of meme coins go to zero. This content does not constitute financial, investment, or trading advice. Past performance of any token is not indicative of future results. Always conduct your own research and never invest more than you can afford to lose completely. The referral links in this article may provide us with a commission at no extra cost to you.