The key question remains whether a blockbuster meme can be replicated.
Written by: KarenZ, Foresight News
In 2024, Pump.fun rapidly rose to prominence with its innovative token creation model, becoming a significant driver in the Solana ecosystem's meme token craze. However, as the meme market within the Solana ecosystem experiences ups and downs, Pump.fun faces multiple challenges: the solid position of established DEXs like Raydium and Jupiter in the trading space, the gradual decline in user enthusiasm for meme tokens, and competitive pressure from the BSC network have all hindered Pump.fun's growth momentum, prompting the Pump.fun team to reassess its development strategy.
In the early hours of today (March 21, 2025), Pump.fun officially announced the launch of its DEX—PumpSwap, marking the platform's transformation from a single token launch platform to a comprehensive platform that integrates token launches and trading. Will the launch of PumpSwap inject new vitality into Pump.fun? Can it replicate its past glory in the meme token space?
What features does PumpSwap offer?
PumpSwap adopts a constant product AMM model similar to Raydium V4 and Uniswap V2. The most significant change with PumpSwap is the elimination of the intermediate step of migrating tokens from Pump.fun to external DEXs (Raydium). All tokens that have completed their joint curve will directly create liquidity pools and initiate trading on PumpSwap.
The core features of PumpSwap include:
1. Seamless token migration: From now on, all tokens that have completed their joint curve will migrate directly to PumpSwap, rather than relying on Raydium, and there will be no migration fees (previously 6 SOL). This change removes the economic barrier for token creators to enter the trading market.
2. Free liquidity pool creation and provision: Users can create liquidity pools at no cost and provide liquidity for existing pools.
3. Extensive token support: PumpSwap not only supports all meme tokens that have graduated from Pump.fun but also adds trading support for multiple popular project tokens, including PENGU, APT, TRON, cbBTC, USDe (Ethena), FXS, fxUSD, SEI, JUP, ZRO, MNDE, MPLX, DRIFT, PLUME, RETARDIO, SAVE, SCR, OX, and W. Among these tokens, APT (Aptos) and TRON are accessing the Solana ecosystem for the first time through PumpSwap, showcasing the platform's ambition for expanded compatibility.
4. Fees: PumpSwap charges a 0.25% fee on each transaction, of which 0.20% is allocated to liquidity providers and 0.05% goes to the protocol.
5. Creator revenue sharing: The "creator revenue sharing system" is also a major highlight of PumpSwap. PumpSwap will share a portion of the protocol's revenue with token creators, aiming to incentivize higher-quality meme projects. The details of fee distribution will be further adjusted after this feature goes live.
In terms of security, PumpSwap has undergone nine security audits conducted by Pashovgroup, OtterSec, bl0ckpain, and Sec3, and has committed to open-sourcing its code in the future to enhance community trust. Pump.fun is currently conducting a PumpSwap audit competition with Cantina, a market application focused on Web3 security solutions, with a total reward of 2.01 million USDC.
What are the advantages and challenges of Pump.fun?
Pump.fun believes that the migration of tokens after graduating from Pump.fun is a major friction point that slows down token development momentum and introduces unnecessary complexity for new users.
The launch of PumpSwap aims to address long-standing pain points and seize new market opportunities. First, the policy of free migration and liquidity pool creation significantly lowers the participation threshold for users, especially for small-scale investors and token creators, enhancing the platform's appeal.
In the past, tokens had to be manually migrated to Raydium after graduating from Pump.fun, a process that was not only time-consuming but also risked missing the brief window of enthusiasm for meme tokens. PumpSwap allows users to enter the market instantly through native integrated trading functions, enabling them to seize opportunities at the first moment.
The upcoming creator revenue sharing mechanism, which shares protocol revenue with token creators, is expected to encourage more developers to invest time and creativity in creating more attractive meme projects, thereby improving the overall quality and activity of the ecosystem.
However, the success of PumpSwap is highly dependent on the continued prosperity of the meme token market within the Solana ecosystem. The LIBRA token crash in February 2025 highlighted the market's fragility. If the market continues to cool, PumpSwap's trading volume and revenue will face severe challenges.
Additionally, established DEXs like Raydium and Jupiter already exist within the Solana ecosystem, and as a new DEX player, PumpSwap needs to quickly prove its advantages in functionality and user experience.
On the other hand, PumpSwap's low entry barrier may further amplify risks such as "soft rug pulls," potentially leading to an influx of low-quality tokens that harm the interests of ordinary investors. In a weak market, the risk of low-quality tokens flooding the market is higher, which could further undermine user confidence.
Conclusion
The launch of PumpSwap is Pump.fun's proactive response to market changes and a key step in its transition from a single launchpad to a comprehensive meme trading ecosystem. By eliminating trading friction, enhancing efficiency, and incentivizing creators, PumpSwap demonstrates a mature design approach on a technical level. The PumpSwap platform directly extends the token lifecycle to the trading phase, forming a complete closed loop of "launch - trade - incentivize."
At the same time, Raydium, as the most liquid and high-volume DEX in the Solana ecosystem, has benefited to some extent from the migration of Pump.fun's meme tokens. The launch of PumpSwap directly cuts off this flow of users, keeping meme token trading internal and leading to a shrinkage of Raydium's market share. However, Raydium also plans to launch LaunchLab to compete with Pump.fun.
Moreover, the Solana ecosystem has not seen a similar phenomenon-level project for a long time, leading to a significant cooling of user enthusiasm for meme tokens within the ecosystem, casting a shadow over PumpSwap's prospects. While the creator incentives of PumpSwap have potential, whether they can quickly reverse this trend remains uncertain, especially in the short term when it is difficult to generate blockbuster hits.
In the future, if PumpSwap can produce one blockbuster meme after another and break the deadlock of a weak market, it is expected to secure a place in the Solana ecosystem; otherwise, it may become just another attempt after the hype fades, struggling to replicate the former glory of Pump.fun.
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