Thinking about building a pump.fun imitation platform from 0 to 1

Original author: @0xmeme4fun

(meme4fun is a platform that is currently making memes. All opinions only represent the authors ideas.)

Why do you want to copy pump.fun?

Starting a business is an extremely risky thing, with a 99.9% chance of failure. Choosing the right track will increase the probability of success by 10 times (the success rate is as high as 1%). Is pump.fun the copycat platform on this track?

My answer is of course yes. From a business perspective, the current competition in the meme launch platform is insufficient. Pump.fun is the only one in the market. No product doing similar things, whether it is sol or evm layer 2, can reach even 1/10 of the performance of Pump.fun. No one would believe that this would be a monopoly market.

The competition in the pump.fun clone market is one order of magnitude less intense than that in the past dex/layer 2. Judging from the competition in the nft marketplace, it is far from fierce enough. There is still a lot to be done.

From a product perspective, pump.fun currently does not have enough motivation to make many people carry out vampire attacks without issuing coins. The rest will be discussed below.

VC Financing Environment

There is insufficient competition and the market is large enough, which is why VCs are willing to pretend to be looking at this track.

But in addition to pretending to watch this track, VCs are also pretending to understand memes and pretending to play with memes.

Here are two explosive theories:

• Among the current mainstream VCs, the proportion of investors/analysts who have bought any token on pump.fun is probably no more than 1%. The proportion of VCs who are actually participating in the meme is less than 5%, and basically none of them have participated in the early stage.

• The way that mainstream VCs pretend to understand memes and play with memes is to read such media articles. The proportion of media editors who seriously experience new products and rush to play with memes is much higher than that of VCs.

Once you realize this, when thinking about financing strategies, the first person you should look for should not be VC, but directly DM the truly participating users on Twitter. They will understand some of the problems in pump.fun and the entire meme ecosystem better.

When your product has something interesting, you will get the most authentic feedback, and the path to community financing will be smoother, lets fuck VC.

BTW, the support of top VCs will only help the operation and implementation of the project in the short term. In the long term, VCs are actually useless.

The problem with Pump.fun and meme eco

The first problem is already clear, and it is very clear when looking at a set of data:

The NFT is dead market has been said for a year, but it has generated more than 100 million US dollars in revenue for creators in the past year, and the platforms revenue is also in the order of 100 million US dollars.

As a representative of the new creator eco, Pump.fun aims to create new-era entertainment content. Its past revenue was also 100 million US dollars. The incentive for creators was 0.5 sol of Raydium, and the total fee issued was in the millions of US dollars, a difference of 100 times.

To replace old products, new products need to be 10 times better, and thats the opportunity.

The second question is also obvious. When will pump issue coins? What happened to opensea that was looked rare/blur is bound to happen. People follow the meme not only for fun, but also to make money. When will the platform coins recover?

BTW, although Pump claimed in the public AMA that they would issue coins, it is not cost-effective for them from any perspective. Currently, they make money from transaction fees without any effort, and there are no decent competitors. Issuing coins is more of a threat to teams that want to launch vampire attacks.

The third problem is a long-term issue that needs to be resolved and is also part of long-term product planning: the content/asset duality of memes.

The logic of Asset is very clear, but the content attributes of meme itself are ignored.

Currently, various types of trading bots that rely on trading attributes provide a good distribution of these high-risk assets, and users can easily make speculative decisions based on the data behind the asset attributes.

How to distribute the content attributes of meme itself? These distributions are a bit like lottery, not speculation. A good content is easy for users to make lottery/reward behaviors below 10 US dollars. The liquidity of the long tail requires a new distribution method. How to build this distribution method, we will leave it to the product part to talk about.

Which chain to choose

When you have chosen a track, gained insight into some industry problems, and have some financing ideas, when you are ready to start working on it, choosing a chain is the first step, because EVM and SOL are two completely different development models, and everyone has different development resources.

Ideally, I think there are only two chains to choose from, SOL and Ethereum mainnet, because only these two chains have enough meme developers and meme liquidity.

This is similar to how the earliest short video platform was Musically in the United States and Kuaishou in China. Only with good enough infrastructure and population can a new creator economy be possible. Other layer 2 platforms do not yet have this condition. Platforms deployed on other chains need to wait until the meme ecosystem of that chain is established before they can be successfully built.

Of course, from a business perspective, if you can get the support of a public chain, or directly get investment from the public chain, it is indeed a very cost-effective choice. For a public chain, supporting a meme platform has basically become a must, but from the perspective of long-term product construction, other public chains have an order of magnitude difference in meme population compared to sol/eth.

How to choose core products

Traders or Dev?

Many users, including those who are observing the industry, believe that pvp and high rug/pull are the biggest problems in the current memecoin ecosystem.

Whoever can better protect investors has the potential to gain a larger market share.

This is probably the biggest wishful thinking of our entire industry.

The industrys most explosive applications, from 2017 to now, have always been about how to launch tokens more conveniently and build liquidity.

Traders are well aware of the underlying assets they are trading. They trade not for refunds but for 10 0x. Therefore, the products for traders are not about how to ensure that the principal is not lost, but about providing as many underlying assets as possible to traders.

Meme platforms should prioritize motivating developers, as they are the ones who create new narratives and targets.

In addition, when you crawl all the on-chain behaviors of pump devs, you will find that the devs are also traders with higher trading vol.

Do we need to use a new bonding curve or a new issuance mechanism?

How were tokens issued before pump.fun?

You can refer to pinksale here. This product provides very good templates for various liquidity locks, vesting, and refunds that everyone can think of, but why did pump.fun come out?

Because it is simple and direct enough, pvp is not a problem but a feature.

Therefore, when using a new bonding curve or issuance mechanism, the key consideration is still who are the users you need?

Various mechanisms such as pk/short selling/refund/fair launch, etc., are liked by users or those who want to issue coins.

In terms of bonding curve, there is actually a product that does a great job, vv.meme. Anyone who wants to study new distribution methods should take a look.

As for the new distribution method, we have also been studying whether it is possible to add some fair launch models in the PVP process.

The current reality is that, including ourselves, we have not found a better solution than the current bonding curve. Our future new solution may only provide users with a new option.

How to motivate in the long term?

Currently, the pump.fun raydium graduation rate is around 1%.

After raydium graduates, the probability of rugpull should be as high as 99%, and the first batch of profit-makers will basically run away. New incentives are needed here to extend the life cycle of graduated memes.

Moonshot鈥檚 new product last month proved that users have a demand for long-term construction. They built a new lp reward mechanism, and the meme鈥檚 dex transaction fee will be distributed to holders. This is a very good attempt.

This is also the part of our product that we are building. In addition to the transaction fee incentives, how tokens should be incentivized and how sharing relationships should be constructed and incentivized are all products we are building.

Of course, just like building a distribution mechanism, we need to find out who is the most worthy of incentives both inside and outside the market.

Conception of distribution mechanism

As mentioned earlier, memes have the dual nature of content and asset. How should content be distributed?

In fact, we have already seen that we.rich has made preliminary attempts here. It has actually made basic tags for each meme and used a simple recommendation algorithm.

Unfortunately, due to the limited liquidity of base and the number of devs, there is not enough data accumulation and it may not be possible to build a complete distribution mechanism.

In fact, this is what Pump should build. They should not compete with pepeboost-type trading bots for the distribution of trading assets, but should consider more about how to distribute the content behind the meme.

The current launch volume of 10,000 memes per day + the attributes behind user wallets are actually enough to try out new distribution mechanisms.

A new opportunity may also arise here, which is to build a new meme discovery mechanism by making a nesting doll of Pump and aggregate long-tail liquidity, which will be of great help to the entire meme creator eco.

Operational choice: to build a platform or to build a creator ecosystem

When deciding to do pump.fun, one of the suggestions that came up was to do the plate.

You need to artificially create some wealth effects when the new platform is launched, so that early users (traders) can stay on the platform for a long time.

For example, a meme platform promoted by a public chain had several memes of 10m in the first week of its launch.

Some products that try to start a meme platform on different layer 2 also follow this idea. I have seen a lot of such social media materials:

xxx is pump.fun of xxx chain, xxx token is Longyi, you can pay attention to it.

The second material is: Dragon One is already xx times, Dragon Two may be xxx

Many people raise funds for this purpose, in order to better acquire early users.

If you recognize that meme is an ecosystem for creators, then artificial trading is actually harming the community. The devs and traders on the platform will only consider one question: whether your project has official support. The opportunities for wild growth have been flattened. Since there is no official support, go to pump.fun and get new opportunities.

Trading is a way to get positive feedback in the short term, but in the long run you will fall into a trading trap. These platforms now have less than 100 new tokens per day. This is the reason. What is important is not trading, but establishing a mechanism for wild devs to come out.

This choice also determines the future product direction: building a new meme distribution platform by providing tools for more convenient issuance and building community liquidity.

Finally, whether you are starting a business in web3 or web2, it is normal to understand a lot of principles but still not live a good life. If you are interested in this track, or want to experience the internal test product, please find me in the following ways:

Twitter: https://x.com/ 0x meme 4 fun

TG: t.me/Joemem4fun

This article is sourced from the internet: Thinking about building a pump.fun imitation platform from 0 to 1

Related: A comprehensive review of Binance AI investment portfolio, who will be the next Alpha leader?

Who will be the next leader in AI Web3 narrative? As the main plot closely linked to the pulse of global technology in 2024, the AI Web3 track once set off a small market climax after Binance launched the leading project Bittensor (TAO) in April. Related tokens ushered in a general rise, but unfortunately failed to form a sustained heat. Under the surface, Binances bet on AI is clearly accelerating: This year, whether it is Aggregata being selected for the latest MVB accelerator program, or Binance Labs officially announcing large investments in Sahara AI and Myshell, as well as Sleepless AI, io.net and others being listed on Binance, Binances multiple investment arms have frequently made moves in the field of AI Web3, and the pace has greatly accelerated . The…