Pump.fun — Complete Tutorial
Pump.fun has gained huge userbase in a short amount of time thanks to the current Solana memeseason. Pump.fun has became the nr. 1 place to hunt for early memecoins as it is as fair as you can get on Solana meme coin launches.
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It has attracted significant attention from the crypto community by allowing anyone to create and launch an instantly tradable new token without seed liquidity for less than $2 in under a minute.
This article will explain in more detail what pump.fun is, how to buy tokens there, what to keep in mind and what is coming for pump.fun in the future.
What is pump.fun?
Pump claims it prevents rugpulls by ensuring the safety of tokens created on the platform. “Each coin on Pump is a fair-launch with no presale and no team allocation,” the project states.
How pump.fun works
As stated by pump.fun themselves:
Pump.fun prevents rugs by making sure that all created tokens are safe. Each coin on pump is a fair-launch with no presale and no team allocation.
Deployers simply pick a name, ticker and JPG image and instantly begin trading on a bonding curve. Users select a token, buy it on the bonding curve, and sell it whenever they like.
A bonding curve is a mathematical curve that determines the price of a token based on its supply. The price typically increases as more tokens are purchased.
When enough users have bought the token and its market capitalization reaches $69,000, $12,000 of liquidity is deposited to the Solana decentralized exchange Raydium and burned. On Blast, the market cap requirement is $420,000, upon which $30,000 of liquidity is deposited to the Thruster DEX.
Pump says it offers an alternative to existing token launches, which typically follow one of two paths: either directly deploying a token and establishing liquidity on a DEX like Raydium, with the minting authority then renounced and the liquidity provider token locked or burned, or conducting a presale where participants send funds to an address without immediate return.
How to trade on pump.fun
You have basically two options for trading on pump.fun:
- Through Telegram Trading Bots
- Through pump.fun webapp
My recommendation is that you trade through Telegram trading bots such as Trojan on Banana Gun Bot On Solana, due to their superior UX, speed and convenience. I will walk you through both options
Telegram Trading Bots
Telegram trading bots such as Trojan on Banana Gun Bot On Solana have just recently announced that they support pump.fun
In order to start trading pump.fun tokens through one of these bots, simply start Trojan and copy paste any pump.fun token address into the chat.
With Trojan you can trade pump.fun during the liquidity curve and afterwards through Raydium liquidity pools.
If you need in-depth tutorial on how to use Trojan, you can read my article on it here:
Through Pump.fun
In order to trade through pump.fun, navigate to any token’s page and on the right you will see BUY/SELL menu. Set amount of you are willing to buy with and buy.
On the left you can see comments left by different trader (anyone can comment, so they are not necessarily buyers). You can also see the trades of everyone from the Trades tab. Always take note of the first transactions of any token, did somebody buy immediately after launch a big %? → Very likely dev who is waiting to dump on you.
Conclusion
There you go, now you know how to buy and sell token from pump.fun. My recommendation is to use Trojan for trading as at least for me pump.fun interface lags quite a bit sometimes + it is just more convenient. If you sign up to use Trojan through my link you get 10 % off your fees forever!
Other links
- Pump.fun website: https://www.pump.fun/
- Pump.fun Twitter: https://twitter.com/pumpdotfun
- Pump.fun support telegram: https://t.me/pumpfunsupport
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