Promoting shovels in a gold rush was one of many surest methods to make earnings, and it’s no completely different at this time within the digital asset world.
Pump, a meme coin generator platform, has earned over $5 million in charges since going reside in March amid an ongoing meme coin frenzy on Solana, making it one of many greatest revenue-generating functions in a comparatively quick interval.
The platform made $300,000 prior to now 24 hours alone on Solana, data shows, contributing a major chunk to the community’s complete generated charges of $2.5 million. Annual income projections based mostly on present utilization and development are about $66 million, DefiLlama knowledge reveals.
Pump lets anybody concern a token for $2 in capital, after which they select the variety of tokens, theme, and meme image to accompany it. When the market capitalization of any token reaches $69,000, a portion of liquidity is deposited to the Solana-based alternate Raydium and burned. Final week, the platform additionally prolonged help to the Blast and Base networks.
The draw for merchants is a supposed inbuilt security mechanism: “Rug pulls,” a typical crypto rip-off that sees token issuers drain liquidity, aren’t doable on Pump-issued tokens.
“Pump prevents rugs by ensuring that each one created tokens are secure. Every coin on Pump is a good launch with no pre-sale and no staff allocation,” its website says.
The convenience of utilization means new tokens are created almost each different second. CoinDesk calculated a complete of 35 issuances in a one-minute interval in Asian morning hours on Tuesday, though this determine is more likely to wildly change based mostly on timezones and curiosity in new forms of memes.
Whereas there are seemingly tens of hundreds of tokens which were launched on Pump since its March launch, only some have reached market capitalizations of greater than $10 million.
The biggest tokens up to now are Shark Cat (SC), a cat sporting a shark cap, and Hobbes, named after the cat of standard Solana dealer Ansem, with valuations of $100 million and $35 million, respectively.
Cat memes are a well-liked draw for issuers, though standard Pump tokens vary from a can of Arizona Iced Tea and Lord of the Rings character Gandalf to a pixelated picture of a rubber duck.