How a memecoin launch on Pump.fun actually works step by step
A memecoin launch on Pump.fun is a predictable, automated process that creates a new token, sells it through a bonding curve, and - if enough buyers appear - migrates the remaining liquidity to Raydium. The whole procedure, from coin creation to potential rug pull, usually takes minutes to hours. Here is the exact sequence.
Step 1: A creator pays the launch fee
Someone connects a Solana wallet to Pump.fun, uploads an image, picks a ticker and a name, and pays a small fee (a few cents worth of SOL) to deploy the token contract. The contract is a standard Solana program with no special permissions - no mint function, no freeze authority, no blacklist. The creator cannot mint more tokens later. That is the only structural constraint Pump.fun enforces.
Step 2: The bonding curve opens
Once the contract is live, Pump.fun opens a bonding curve for that token. The curve starts at a price near zero and increases with each buy. The first buyer might get billions of tokens for a few dollars. The 100th buyer pays significantly more per token. The curve is linear - each purchase pushes the price up by a fixed increment. There is no slippage calculation on Pump.fun itself; the price you see is the price you pay, plus a 1% fee that goes to the platform.
Step 3: Buyers accumulate tokens
Anyone can buy during the bonding-curve phase. There is no presale, no whitelist, no vesting schedule. The creator holds the same kind of tokens as everyone else - no locked supply, no team allocation. This is the phase where most memecoins die. If the curve does not reach its target market cap (roughly $69,000 worth of SOL at current settings), the token never leaves Pump.fun. Buyers who hold tokens after a failed launch can sell back into the curve, but the price is usually near zero by then.
Step 4: The migration threshold triggers
When the bonding curve accumulates enough SOL to hit the target, the process becomes irreversible. Pump.fun automatically creates a liquidity pool on Raydium, a Solana DEX. It takes half the SOL raised and pairs it with the remaining token supply - the tokens that were not yet sold on the curve. That pair becomes the new market for the token.
Step 5: The old curve is closed
Simultaneously, Pump.fun closes the bonding curve. No more buys or sells happen on Pump.fun for that token. The only way to trade it now is on Raydium. The creator and all early buyers now hold tokens that can only be sold on the open market. The liquidity is locked - Pump.fun burns the LP tokens, meaning no one can withdraw the SOL from the Raydium pool. Locked liquidity is not safety, but it does prevent the most obvious form of rug pull.
What the creator can still do
The creator cannot mint more tokens, but they can sell their entire holdings on Raydium the moment the pool opens. This is called a "dump" and happens constantly. The creator also controls the token's social media, website, and marketing narrative. They can announce fake partnerships, pay for influencer shills, or simply disappear. Pump.fun does not prevent any of this.
What happens after migration
Once on Raydium, the token behaves like any other Solana memecoin. The price is determined by the automated market maker - buys push price up, sells push it down. Slippage matters now; high-slippage trades can get frontrun by MEV bots. Priority fees determine whether your transaction lands before the bots. RugCheck.xyz can tell you whether the contract has hidden functions, but on Pump.fun launches the contract is usually clean - the risk is entirely in the creator's behavior and the market's willingness to buy.
Why most Pump.fun tokens go to zero
The economics are simple. The bonding curve gives early buyers enormous token supplies at microscopic prices. When the token hits Raydium, those early holders can sell at any price and still profit. The only way the token holds value is if enough new buyers arrive after migration to absorb those sells. Most tokens do not attract that demand. The curve fills, the pool opens, the early sellers exit, and the price collapses within minutes.
The one honest use case
Pump.fun is useful as a way to observe memecoin dynamics without risking large amounts. The launch process is transparent, the contract is standard, and the migration is automated. If you understand that you are almost certainly buying into a distribution event for early holders - not a long-term project - the platform at least does not lie to you about how the mechanics work.
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