Shocking News: Pump.Fun’s AMM Could Spell Doom for Raydium’s RAY! 😱💸

by

What to know:

  • It appears that the Solana token issuance platform, Pump.Fun, is preparing to launch its very own automated market maker (AMM). How delightfully ambitious! 🎩
  • The “amm.pump.fun” is teasing a swap product that boasts a sell and buy option, along with a deposit and withdrawal function. Quite the first for Pump, I must say! 🥳
  • While a smidgen of Raydium’s trading activity is derived from Pump tokens, the exchange is not a one-trick pony and supports several other top markets. Fancy that! 🐴

Word on the street is that Pump.Fun, the Solana-based token issuance platform, is on the verge of unveiling its own AMM, as hinted by a cheeky URL. However, the public announcement is still playing hard to get. 😏

Now, for those unacquainted with the lingo, an AMM is a rather clever exchange system in the crypto realm that simplifies trading by utilizing a liquidity pool of at least two tokens. Instead of the traditional matchmaking of buyers and sellers, smart contracts take the reins, setting prices based on supply and demand, allowing trades to occur without a counterparty. Quite the modern marvel! 🧙‍♂️

The “amm.pump.fun” is showcasing a swap product in the works, complete with a sell and buy option, plus a deposit and withdrawal function. This is a first for Pump.Fun, which allows anyone to issue a token for less than $2 in capital. After that, they can choose the number of tokens, theme, and even a meme picture to accompany it. Talk about a creative outlet! 🎨

When the market capitalization of any token reaches the rather amusing figure of $69,000, a portion of liquidity is deposited to the Solana-based exchange Raydium and burned. Yes, burned! (That’s when tokens are taken out of circulation permanently, not a bonfire party, mind you.) 🔥

Now, if Pump.Fun’s AMM comes to fruition, it could mean that tokens will no longer be migrating to Raydium. At least, that’s the prevailing sentiment in the market, which has sent RAY tokens plummeting by 25% in the last 24 hours. Ouch! 😬

“It seems they are planning to have pump tokens graduate to their own pools instead of Raydium,” remarked trader @trenchdiver101, who was the first to sound the alarm. “They can either extract more fees on Solana or devise some mechanism to reward token holders.” How very astute! 🧐

While a portion of Raydium’s trading activity does stem from Pump.Fun tokens, the exchange is no slouch and supports several other top markets — such as Solana (SOL) to stablecoins and others — contributing to its impressive $500 million in average daily trading volumes. Quite the bustling marketplace! 🏪

As such, this new product could further inflate the revenues and profits of Pump.Fun, which, amusingly enough, has no token but is among the most profitable crypto applications in the past year. A rare feat indeed in a market where businesses often rely heavily on token sales to generate income. Bravo! 👏

Pump.Fun has raked in over $550 million in total fees since March 2024, with a staggering $2.4 billion in trading volumes over just the past two weeks. Over 8 million tokens have been issued on the platform since its 2024 launch, with a few, such as fartcoin (FART), reaching billions of dollars in market capitalization. Who knew flatulence could be so lucrative? 💨💰

Read More

2025-02-24 10:19