Memecoin launchpad (pump.fun model)

The model was popularised on Solana in 2024. A user names a token, uploads an image and launches it for a small fee. The token starts trading against a bonding curve, a formula that raises the price automatically as more is bought, so no initial liquidity pool is needed. When the curve's market cap reaches a set target, the token graduates: the accumulated funds and remaining tokens are deposited into a DEX pool and trading continues there. Similar platforms appeared on other chains.

Launchpads made token creation almost free and turned memecoin trading into a mass activity, generating very large fee revenues for the platforms. They also standardised fair launch features, such as no presale and a fixed supply.

The numbers are harsh for buyers. Research on these platforms has found that only a small fraction of tokens ever graduate and that most traders lose money, while snipers, bundled insider buys and coordinated promotion capture much of the value. Some launchpads have faced lawsuits accusing them of operating unregistered gambling or securities platforms.