The emergence of Pump-like products does not necessarily mean that players can turn from "leeks" to "sickles".
By 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 number of tokens issued on the Solana chain has exceeded 10,000 per day, and Base chain has maintained over 2000 daily trading pairs for several days. 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 can support users to deploy and issue tokens at an 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 (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 can be completed in less than 1 minute. To issue a token on Pump, users only need to upload an image, give it a name, and write a brief introduction. 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, as users do not need to deposit their own funds into the pool during the initial deployment. Instead, an LP pool of approximately $60,000 is automatically set up, and once the number of buyers increases, once the market value reaches $60,000, 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 liquidity pool once the market value exceeds $60,000, rather than relying on the self-awareness and moral standards of the project founder.
Concentrated social interaction functions precipitate Meme culture. For many Meme coins, the most headache 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 has been set up, players' discussions about this token can be preserved, allowing latecomers to quickly understand the progress of this Meme coin.
Can everyone turn from "leeks" to "sickles"?
In addition to Pump's active performance on Solana, similar products have also begun to appear on other chains. For example, on the Base chain, there are We.rich and FriendTech. We.rich has more features and UI optimizations based on Pump, such as maintaining extremely low token prices and limited minting in the early fair launch phase. Although the issuance quantity and active users currently have a significant gap compared to Pump, for the 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. For example, Spectral, which has just released an airdrop plan, writes contract code through a GPT-like text dialogue tool. 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 from "leeks" to "sickles"? After PANews' experiment, it was found that although Pump has simplified the token issuance process and cost to the lowest, it may be difficult to achieve a dream of a hundredfold coin. For ordinary users, after the token is issued, 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 days when the market value exceeds $60,000.
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 making a profit.
How to create a Meme worth over a billion
In fact, there are indeed many successful cases on Pump. There are also tokens with a market value of over $100 million. The typical examples are two "cat kings": michi and Shark Cat.
Next, PANews will analyze how these Meme coins worth over a billion are born based on several cases with relatively high market values.
The journey of the two cat kings
michi is the highest-valued Meme coin on Pump so far, with a market value of $186 million, created on April 8th.
Shark Cat has a market value of approximately $160 million and was created on March 26th.
Materials:
First of all, the timing and theme of these two tokens became 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 war" theme. 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 perfect timing, the community foundation is also very important. PANews research found that almost all Meme coins ranked high in market value have one common feature: the initiators are not unknown individuals.
Take michi as an example, its founder psykø (@psykogem) is an experienced Meme coin player and KOL, with 4700 followers on X, and is very active on both X and Telegram, with his tweets maintaining a high reading volume. Before michi was released, he had also preheated it on social media several times.
The founder of Shark Cat is also a KOL, named 0xWinged (@0xWinged), who had successfully launched the CopyCat project before Shark Cat, and achieved good results. His personal fan base on X exceeds 10,000 people.
Promotional ability:
Of course, relying solely on a certain number of fans cannot guarantee the easy success of token issuance. The topicality during the issuance process is also an important element driving price speculation. The founder of michi played a sincere card. In the early stages of issuance, he personally bought 40 SOL worth of michi tokens and destroyed them. This move not only helped michi quickly reach the $60,000 market value curve progress bar 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 through this bold move.
Subsequently, in the development of michi, psykø continued to promote the token by airdropping 1%; advertising in Times Square, New York; and paying artists to create related emoji material.
0xWinged used a different approach when launching Shark Cat, holding a Space event on X. Early buyers were mostly attracted through this Space event.
Funding:
The frenzy of Meme is never a one-person frenzy. The real boost in price cannot be achieved without 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 curve progress. This user ultimately profited 1,369 SOL through EPIK. Although we cannot know the reason why this user dared to go all in in the early stages, based on their trading records, this user had bought multiple similar-themed rubber duck tokens on April 3rd, each time investing over 10 SOL. Behind this coincidence, there may be a funding strategy for mass Meme speculation. In the early trading of several other high-market-value projects, similar large speculators also appeared.
Through the above analysis, we may be able to roughly glimpse some necessary elements in the process of promoting popular Meme coins. These are materials, community, promotional ability, and funding. 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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