A Guide to Solana's Pump & Dump Memes
It's so simple, anyone can do it.
Solana is making higher highs while Ethereum is making lower lows, and you wonder, what does Solana have that Ethereum does not?
It’s called… Pump.Fun
Cute little name, but the consequences are dramatic for both chains. Let’s dive in.
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Have you heard of the GOAT meme coin?
This is the most successful meme launched on Pump.Fun. This went from $0 to $660 million market cap in two weeks and just got listed on Binance futures.
WHAT? How?
Let me introduce you to Solana’s most important pump generator.
This is Pump.Fun.
A place where anyone can create and launch a meme coin on the Solana network with only 0.02 SOL or a few dollars. If its market cap hits over 69k, Pump.Fun will list the meme on Raydium with 12k liquidity. That’s similar to Uniswap.
Anyone can buy your token, pump it, or dump it later. There are no VCs, but the token creator can buy it first. This is gambling, but 100x more addictive. As you can imagine, the number of memes generated on this site is in the millions. Some make it to 69k, most don’t.
If your meme coin is listed on Raydium (= its market cap goes over 69k) you receive 0.5 SOL from Pump.Fun as a reward for a good job. The incentives are aligned.
There are so many bots sniping new memes that anything can pump (and dump). Some degenerates made it a career trading these micro-memes because they can swing by 100% to 1,000% in minutes. In and out.
The below meme coin called EASY was lunched 30 minutes ago and did a 17x. See where this is going?
Remember, the market cap of these micro-memes is maximum 69k on Pump.Fun before they get exposed to new buyers on Raydium. Therefore, you can get rugged just as fast as you 10x your money.
Pump.Fun is a machine pumping not just useless memes but the Solana token. Over 2.7 millions micro-memes were launched on this platform. Only in the past two weeks, $2 billion in volume was traded on Pump.Fun.
Where’s the catch?
These memes are traded against Solana, not USD. To buy them you need to buy Solana tokens first. The meme supercycle is here and it’s on Solana, not Ethereum. Why?
You can’t do this on Ethereum. It’s too expensive.
Pump.Fun users are buying billions in Solana tokens to play in this casino. The real winners are the Solana VCs selling into this magnificent buy pressure generated by pure greed.
By the way, that EASY meme coin that pumped by 17x a few minutes ago just crashed by 85%. This is irrelevant for the Solana token. As long as this casino continues, SOL’s price will go higher. This gets me to my last point.
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Ethereum’s fundamentals and scaling via L2 networks is not creating such demand for its token. It’s actually creating the opposite effect whereby demand for ETH is decreasing the more L2s scale! Not a great reason to buy and hold Ethereum.
For any token to pump it needs demand. What Ethereum has been doing in the past few years was to export that demand to its L2 networks. The price shows it, just look at the SOL/ETH chart.
This does not mean Solana is a better ecosystem than Ethereum, far from it. However, if you are here to make money, you need to buy tokens in demand. Right now, Ethereum seems to be left behind on the narrative front. Perhaps at a later time it will shine again, but not today.
Oh and that EASY meme coin just spiked again, but this time by 54x! That got it listed on Raydium, and then it dumped again by 65%. All this in about one hour. Just check its chart on GeckoTerminal. Where else can you do this in crypto?
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All info is provided for educational purposes only and is not financial advice.