How to Make a Memecoin on Pump.fun: A Detailed Guide for Beginners

What Is Pump.fun Platform?

Pump.fun is a Solana-based marketplace that allows anyone to issue and trade tokens, especially memecoins. This platform is built with the goal of minimizing the complexity involved in token issuance, opening doors for both newcomers and seasoned traders in the crypto community. A key feature is that Pump.fun enables token issuance and trading at very low costs, facilitating memecoin creation.

Launched in early 2024, it quickly became a hot topic within the crypto community, especially after expanding support to Ethereum Layer 2 networks like Base and Blast in mid-2024. Backed by venture capital firm Alliance DAO, Pump.fun has generated significant revenue and has become one of the most profitable applications in the blockchain space.

This success is attributed to its user-friendly interface, low fee structure, and safety mechanisms designed to prevent attacks such as rug pulls. These factors have helped Pump.fun gain the trust of users in the memecoin market.

Bonding Curve Mechanism - The Heart of Pump.fun

The Bonding Curve is an automatic pricing tool used by Pump.fun to adjust token prices based on actual supply and demand. When a new token is generated, Pump.fun places 800 million tokens into the Bonding Curve. As more people buy tokens, the price increases exponentially along a pre-programmed curve.

Early buyers benefit from lower prices, incentivizing early participation. When the market capitalization of a token reaches $69,000 USD, the system automatically transfers liquidity to Raydium (, a well-known DEX on Solana ), and burns a portion of the liquidity provider’s tokens. This mechanism helps stabilize prices and build market confidence.

Key Features That Make Pump.fun Stand Out

Simple Token Creation Process

With just 0.02 SOL (about $3 USD), anyone can issue a completely new token. Users only need to provide a name, ticker symbol, and a profile picture for their token. This low barrier to entry democratizes memecoin creation, allowing many users to start creating tokens without advanced programming knowledge.

Instant Trading

Unlike other platforms, tokens on Pump.fun are ready for trading immediately after issuance. Users don’t have to wait to accumulate liquidity; they can start buying and selling right away.

Competitive Fees

Besides the issuance fee of 0.02 SOL, Pump.fun charges only 1% per transaction — a relatively low fee compared to similar platforms. This structure helps sustain the platform’s operations while keeping costs manageable for users.

Fair Launch

Pump.fun does not allow pre-sales or allocate special distributions for developers. This reduces the risk of insiders dumping tokens early, creating a fairer environment for the community.

Anti-Manipulation Measures

In addition to the Bonding Curve mechanism, Pump.fun applies liquidity burns when tokens reach certain milestones, helping to limit price manipulation by powerful user groups.

Step-by-Step Guide: How to Make a Memecoin on Pump.fun

Step 1: Prepare Wallet and SOL

Visit the Pump.fun homepage and connect your Solana wallet — compatible options include Phantom, Solflare, or other Web3 wallets. Click the connect button at the top right corner and complete the verification process.

Make sure your wallet has enough SOL to pay for fees. If not, you can buy SOL on a centralized exchange and transfer it to your wallet.

Step 2: Issue a New Token

Click on “Start a new coin” on the main interface. Fill in the token name, ticker symbol, and a brief description. Upload a profile picture for your token. Then pay 0.02 SOL to deploy the token.

Once completed, your token will appear on Pump.fun and be ready for trading.

Step 3: Choose a Memecoin to Trade

Browse through the list of different memecoins on the homepage. Click on any token to view price charts, comments, recent transaction history, and other metrics. This detailed information will help you make smarter decisions.

Step 4: Buy Tokens via Bonding Curve

Select the amount of tokens you want to buy. The Bonding Curve system will automatically calculate the price based on current supply and demand, and warn you of the finalized price before executing the transaction.

Step 5: Sell and Take Profits

Anytime you want, you can sell tokens through a similar interface. The selling price will be determined by the Bonding Curve based on market demand. This process allows you to lock in profits or cut losses as needed.

Step 6: Monitor Market Capitalization Milestones

When the market cap of your token hits $69,000 USD, the system automatically sends $12,000 USD worth of liquidity to Raydium and burns the corresponding tokens. This is a critical moment when the token is expected to transition to a more stable phase.

Successful Memecoin Examples from Pump.fun

BaoBaoSol - Raydium Pioneer

BaoBaoSol is the first token on Pump.fun to transfer liquidity to Raydium, marking a significant milestone. This achievement demonstrates Pump.fun’s ability to support memecoin projects in gaining recognition and stability in the broader market.

Shark Cat - Rapid Growth

Shark Cat is one of the most notable success stories from Pump.fun. The token quickly reached a market cap of $100 million USD, driven by an enthusiastic community and positive marketing campaigns on social media platforms. This success reflects the appeal of memecoins with strong community backing.

Hobbes - A Name with a Story

Hobbes, named after the cat of a well-known Solana trader, reached a market cap of $35 million USD. This shows that creating memecoins with compelling stories and active community participation can generate significant market value.

Why Is Pump.fun So Popular?

Extremely Low Participation Cost

With just 0.02 SOL (about $3.50 USD), anyone can issue their own memecoin. This cost democratizes the entire token creation process, allowing millions to experiment with their ideas without worrying about high initial expenses.

Attractive Earning Potential

Successful memecoins like Shark Cat and Hobbes have proven that it’s possible to create tokens with large market values from Pump.fun. Coupled with viral potential on social media, users have opportunities to attract significant investment into their tokens.

Instant Trading

No waiting or approval required, tokens on Pump.fun can be traded immediately. This creates urgency and FOMO (fear of missing out) among investors, boosting trading volume.

Active Community

Since launch, Pump.fun has built a vibrant community with millions of active users. Members not only trade but also promote their favorite tokens across social media platforms.

Risks to Know

Extreme Price Volatility

Memecoins are notorious for their huge price swings. Prices can skyrocket in a short period and then plummet quickly, causing significant financial losses for investors.

Rug Pulls Still Possible

Although Pump.fun has protective measures, the risk of rug pulls (developers withdrawing liquidity and disappearing) still exists. Users should conduct thorough research before investing.

Illiquid Markets

Many memecoins on Pump.fun suffer from low liquidity, making it difficult to buy or sell large amounts of tokens without significantly affecting the price.

Lack of Source Code Transparency

Pump.fun uses closed-source code and closed APIs, which may hide security vulnerabilities not detected by third-party experts. In May 2024, the platform experienced a major attack resulting in approximately $2 million USD in losses due to exploiting a vulnerability in the Bonding Curve.

Pump.fun Security Measures

Pump.fun has implemented several mechanisms to protect users:

Fair Launch: No pre-sales or priority allocations for developers.

Liquidity Burns: When market cap reaches $69,000 USD, part of the liquidity is sent to a DEX and burned, enhancing stability.

User-Friendly Interface: No coding required, reducing technical barriers for users.

Future Outlook of the Platform

Pump.fun plans to continue expanding by integrating additional blockchains beyond Solana, such as Base and Blast. Security upgrades will be prioritized to restore trust after previous security incidents. The platform also intends to incorporate gamification features to attract a broader range of users.

As regulations around cryptocurrencies tighten, Pump.fun will need to adapt by increasing compliance, which may impact its current operational model but will help protect users’ long-term interests.

Conclusion

Pump.fun has become the go-to platform for creating and trading memecoins. With extremely low costs, an easy-to-use interface, and smart Bonding Curve mechanisms, it lowers the barriers to entry into the crypto world. However, users should be fully aware of the associated risks, from high price volatility to rug pulls. Conducting thorough research and managing risks carefully are key to participating safely in Pump.fun’s memecoin ecosystem.