Author: Frank, PANews
In the bull market where no one picks up the plate, the meme coin track has entered a new stage - mass issuance.
Since April 18th, the daily issuance of tokens on the Solana chain has exceeded 10,000, and Base chain has maintained over 2000 daily trading pairs for several days in a row. The main reason behind this surge in token issuance is the explosive growth of one-click issuance tools represented by Pump.
The rise of Pump creates a wave of mass token issuance
Pump.fun is a meme coin issuance tool and social platform mainly targeting the Solana chain. It supports users to deploy and issue tokens with extremely low cost (0.02 SOL) without any development experience. Since its launch in January 2024, it has issued over 460,000 tokens. As of May 9th, Pump's cumulative revenue has exceeded 17 million US dollars (charging a 1% transaction fee).
Although there have been many one-click issuance products in the industry before, few have achieved the popular effect of Pump. For ordinary users, Pump's main advantages are as follows:
- The token issuance process is simple and can be completed in less than 1 minute. On Pump, users only need to upload an image, give it a name, and write a brief introduction to complete the issuance. The entire process is extremely simple, and users cannot adjust settings such as issuance quantity and token ownership.
Exemption from LP pool fees. Compared to previous one-click issuance products, besides paying a certain deployment cost, the main cost for ordinary users is the funds staked in the trading pool. Pump has made an innovation in this regard, where users do not need to deposit their own funds into the pool during the initial deployment. Instead, an LP pool of approximately 60,000 US dollars is automatically set up, and as the number of buyers increases, once the market value reaches 60,000 US dollars, all buy-in funds will be automatically deposited into the LP pool and listed on Rayium Swap. This allows some projects to truly have a relatively stable fund pool once the market value exceeds 60,000 US dollars, rather than depending on the self-awareness and moral standards of the project founder.
Social interaction functions concentrate meme culture precipitation. For many meme coins, the most troublesome issue for players may be understanding the community situation and discussion heat about the project (usually requiring active search for the community). On Pump, because a message board-like function is set up, players' discussions about this token can be preserved, allowing latecomers to quickly understand the progress of this meme coin.
Can everyone turn the tables and become a "reaper"?
In addition to Pump's active performance on Solana, similar products have also begun to appear on other chains. For example, We.rich and FriendTech on the Base chain. We.rich has more features and UI optimizations based on Pump, such as keeping the token price extremely low and limited minting in the early fair launch phase. Although the current issuance quantity and active users still have a large gap compared to Pump, for Base chain, which also has a huge meme market, the appearance of this project may also add a new meme coin battlefield.
In addition, many products combined with AI essentially provide similar one-click issuance functions, such as Spectral, which has just released an airdrop plan and uses GPT-like text dialogue tools to write contract code. However, compared to the convenience of one-click issuance, these products still have significant differences in convenience.
Does the emergence of Pump-like products mean that players can turn the tables and become reapers? After PANews' experiment, it was found that although Pump has simplified the token issuance process and cost to the minimum, it may be difficult to achieve the dream of a hundredfold coin. For ordinary users, after the token issuance, it usually only attracts a few automated trading bots to enter, quickly buy and sell a few times, and then there is no more activity. Most of the tokens issued on Pump are in this state, and there are few that can exceed 60,000 US dollars in market value.
For token issuers, these passing players will quickly take away liquidity, leaving only the founder's buy-in funds in the pool. Although not causing too much loss, there is still a long way to go to achieve the goal of profitability.
How to create a meme with a market value of over 100 million
In fact, there are indeed many successful cases on Pump. The meme coins with a market value ranking in the top few also have tokens with a market value exceeding 100 million US dollars. The typical examples are two "cat kings": michi and Shark Cat.
Next, PANews will analyze how these meme coins with a market value of over 100 million are born based on several high market value cases.
Journey of the two cat kings
michi is the meme coin with the highest market value on Pump so far, with a market value of 186 million US dollars, created on April 8th.
Shark Cat has a market value of approximately 160 million US dollars, created on March 26th.
Material:
First of all, the timing and theme of these two tokens have become the basic conditions for their high market value. During the end of March and early April, it happened to be the stage when the meme track was popular with the "cat and dog battle". During this time on the Solana chain, everyone liked to find various cat and dog-themed memes for speculation. And these two tokens happen to belong to the Cat camp. It coincided with the hottest theme at that time.
Community:
In addition to the timing being just right, the community foundation is also very important. PANews research found that almost all meme coins with high market value rankings have one common feature, which is that the initiators are not unknown individuals.
For example, the initiator of michi, psykø (@psykogem), is an experienced meme coin player and KOL, with 4700 fans on X, and is very active on both X and Telegram, with consistently high reading of his posts. Before michi was released, he had also preheated it on social media several times.
The initiator of Shark Cat is also a KOL, named 0xWinged (@0xWinged), who had successfully issued the project CopyCat before Shark Cat was launched, and achieved good results. His personal fan base on X also exceeds 10,000 people.
Promotional ability:
Of course, having a certain number of fans alone cannot guarantee the easy success of token issuance. The topicality during the issuance process is also an important element driving price speculation. The initiator of michi played the card of sincerity. In the early stage of issuance, he personally bought and destroyed 40 SOL worth of michi tokens. This move not only helped michi quickly reach the curve progress bar of 60,000 US dollars in market value, but also gave later users a sense of "I did it first, you can do as you please". This also gave many people confidence in the development of this token. In the end, psykø also earned over 2.5 million US dollars through this bold move.
Subsequently, in the development of michi, psykø continued to promote the token through methods such as a 1% airdrop, advertising in Times Square, and paying artists to create related emoji material.
0xWinged used a different approach when issuing Shark Cat, through a Space event on X. Early buyers were basically attracted through this Space.
Funds:
Author: Frank, PANews
The carnival of memes has never been a solo celebration. The real push for price increases relies on the support of funds. The third-ranked project in terms of market value on Pump is a project called TEH EPIK DUCK (EPIK). Within the first half hour of its initial issuance, a user with the address GE4LX5DcEAfgVD1MZ1ahiUJboL3G3X4yuh2gcRytjvL5 directly purchased 30 SOL worth of EPIK tokens, directly maxing out the token's progress bar. This user ultimately profited 1,369 SOL through EPIK. Although we cannot know the reason why this user dared to go all in at the beginning, based on their trading records, it can be seen that this user had bought multiple similar-themed duck tokens on April 3rd, each time investing over 10 SOL. Behind this coincidence, there may be a funding strategy for mass meme speculation. Similar large speculators also appeared in the early trading of several other high-market-value projects.
Through the above analysis, we may be able to roughly glimpse at some necessary elements in the process of promoting popular meme coins. These elements are material, community, promotional ability, and funds. These four elements are indispensable for the success of a meme coin. Although not every meme coin needs to become a quadrilateral warrior, at least it needs to have a certain expertise in several aspects to compensate for the shortcomings in other areas.
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