Pump.fun is a Solana-based token launch platform that allows anyone to create a meme coin in seconds for a small fee. Tokens launch in a bonding curve (no liquidity pool needed) and graduate to Raydium DEX when they hit a market cap threshold. It launched in January 2024 and quickly became the most-used Solana dApp, launching thousands of tokens daily. The vast majority of tokens launched on pump.fun go to zero.
How does a pump.fun rug pull work?
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On pump.fun, the most common rug is a 'dev dump': the creator buys a large percentage of supply early in the bonding curve, hypes the token on social media or Telegram, waits for retail to push the price up, then sells their entire position. The price collapses instantly and remaining holders are left with worthless tokens. Bonding curve mechanics make early positions cheaper, incentivizing dev accumulation before promotion.
Can you make money on pump.fun?
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A small percentage of traders make significant money on pump.fun by sniping new launches with bots, identifying tokens with genuine community momentum before they graduate, or being early to viral memes. The majority of participants lose money. Pump.fun itself makes money on every transaction (1% fee), regardless of whether traders win or lose. It is a high-variance, negative-expected-value environment for most users.
