What Is Pump.fun and How Does It Work? Explore Solana’s Top Memecoin Generator

Pump.fun has redefined memecoin creation on Solana. Since launching in January 2024, it’s made headlines by letting anyone generate a token in minutes, with no coding needed, and no liquidity stress. 

With over 2 million tokens created and $100 million in revenue, Pump.fun quickly became the go-to playground for memecoin traders and creators alike.

Now, it’s pushing even further. In March 2025, Pump.fun rolled out PumpSwap, its decentralised exchange (DEX), to improve liquidity and lower fees. 

As of April 2025, it relaunched its previously suspended live-streaming feature, signalling a full-on push to revitalise community engagement and platform growth.

If you’ve been hearing about Pump.fun but aren’t quite sure what it is or how it works,  this guide will walk you through the platform, its newest updates, and how you can get started.

How Pump.fun Works: Token Creation in Minutes

Pump.fun is designed to make memecoin creation fast, fun and fully on-chain. The entire process happens on Solana, taking advantage of the blockchain’s high throughput and ultra-low fees.

To create a token, you simply visit the Pump.fun site, connect your Solana wallet and fill out basic details like the token name, symbol and image. That’s it your memecoin is live. You don’t need to write smart contracts or set up liquidity pools. The platform handles it all for you.

What makes Pump.fun special is its bonding curve model. Prices increase as more people buy, and decrease as users sell. 

Once a memecoin reaches a $69,000 market cap, the platform automatically injects $12,000 in liquidity into Raydium, burning it to boost the token’s visibility and scarcity. On top of that, the creator gets a reward of 0.5 SOL.

All launches are “fair launches” by default, meaning even the creator must buy their token like everyone else. This removes the risk of pre-allocation scams, making rug pulls less likely,  although not impossible.

With over 50,000 active users and massive community involvement, Pump.fun isn’t just a tool it’s become a core part of the memecoin scene on Solana.

PumpSwap and New Features for 2025

The most significant update to Pump.fun this year is PumpSwap, the platform’s own built-in DEX. It replaces the previous system where token creators had to migrate liquidity to Raydium and pay a 6 SOL fee. Now, tokens can instantly become tradable on PumpSwap with no migration fee.

PumpSwap uses a Uniswap V2-style AMM model and charges a 0.25% trading fee ,  0.20% goes to liquidity providers and 0.05% to the protocol. It also supports free liquidity pool creation and is expected to go open source soon.

Another major update is the return of live streaming, a feature that was shut down in November 2023 due to serious content moderation issues, including users threatening self-harm for token promotions. 

After a five-month pause, Pump.fun has reintroduced livestreams to 5% of its users with new safety guidelines and moderation tools in place.

The new system includes strict content rules, banning violence, abuse, illegal activity, and inappropriate content. While NSFW content is not outright banned, the platform now holds the right to terminate streams or accounts that cross the line.

Livestreaming is a big deal for community engagement. It allows token creators to promote their coins in real-time, interact with viewers, and build a community around their memecoin,  turning Pump.fun into more than just a launchpad.

This feature could help Pump.fun stands out even more in a competitive market, especially as it faces pressure from rivals like SunPump on Tron and Moonshot on Solana.

Read more: Pump.fun vs VVaifu.fun: Understanding the Differences

Growth Challenges and Why Bitrue Is Still a Safer Entry Point for Some

Despite its success, Pump.fun isn’t without challenges. Revenue has dropped more than 60% in the past 30 days as interest in memecoins cooled post-LIBRA scandal. 

From $76 million to just $23 million in monthly revenue, the dip has pushed the team to innovate quickly,  hence the launch of PumpSwap and livestreaming.

There’s also rising competition. Raydium is planning its own memecoin launch platform, while Moonshot appeals to more serious builders by offering smart contract audits and stronger security. 

Pump.fun remains the most social and viral, but some creators are migrating to platforms that cater to longer-term growth rather than meme hype.

For newer users unfamiliar with decentralised platforms like Pump.fun or Solana, navigating wallets, gas fees, and bonding curves can feel overwhelming. That’s where centralised exchanges like Bitrue come in.

Bitrue allows you to trade memecoins, including trending Solana-based tokens, without worrying about liquidity pools or DeFi mechanics. It’s a great way to explore these assets if you're still learning how decentralised trading works. 

With user-friendly interfaces, spot and futures markets, and top-tier security, Bitrue is one of the easiest ways to get started.

While Pump.fun is perfect for creators and crypto natives, Bitrue offers a safer and simpler option for new users who just want to buy memecoins and participate in trends without needing deep technical knowledge.

Read more: 7 Solana Meme Coins About 'Jail' on Pump.fun

Conclusion

Pump.fun has evolved from a simple token launch tool into a fully-fledged ecosystem. With PumpSwap now live, livestreaming features returning, and over 2 million tokens launched to date, the platform continues to shape the memecoin space on Solana.

Still, it’s not without risks. Most tokens have no long-term value, and the memecoin market is prone to volatility and scams. 

While Pump.fun has tried to address this through fair launches and better moderation, users should always do their own research and avoid investing more than they can afford to lose.

For those new to this world, Bitrue offers a great starting point. You can still catch memecoin trends, but in a more familiar, centralised environment ,  no bonding curves or complex setups required.

Whether you’re here to launch the next viral coin or just watch from the sidelines, Pump.fun is one of the most exciting tools in crypto right now. Just be sure to have fun ,  and stay safe.

Frequently Asked Questions

What is Pump.fun and how does it work?
Pump.fun is a Solana-based platform that lets users create memecoins in minutes without coding. Tokens are launched using a bonding curve model and made instantly tradable.

What is PumpSwap and why is it important?
PumpSwap is Pump.fun’s new built-in DEX that removes the need to migrate tokens to other platforms. It enables free, instant trading with lower fees and better user experience.

Is Pump.fun safe for beginners?
While the platform has anti-rug pull mechanics and now includes livestream moderation, it may still be confusing for newcomers. Bitrue offers an easier way to trade memecoins without needing DeFi experience.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

Bitrue Official Website:

Website: https://www.bitrue.com/

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Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.