What Is pump.fun? How Memecoin Launches on Solana Work
Launching a token
A creator picks a name, ticker and image, and the token is created with a fixed supply. Tokens made on pump.fun launch with 1 billion supply, which is the starting point for QUANTUM (QNT).
The bonding curve
At first there is no traditional liquidity pool. A bonding curve sets the price automatically: as people buy, the price rises along the curve, and as people sell, it falls.
Graduation
When the curve fills, the token graduates and its liquidity moves to a decentralized exchange pool, such as PumpSwap. From then it trades like any other pool token and shows up on chart sites like DexScreener.
What buyers should know
- Anyone can launch a token, so quality varies hugely.
- Check the contract details such as mint authority.
- Prices can swing very fast. See how to read a chart.
Ready to buy? Read how to buy QNT.
Numbers behind a typical launch
Third party documentation describes the 1 billion token supply as split: roughly 800 million tokens are sold along the bonding curve and about 200 million are reserved for the pool the token moves to. Bitquery's guide says graduation happens when the curve is fully sold out, the market cap then typically sits around 30,000 to 35,000 US dollars depending on the SOL price, and trading moves to PumpSwap automatically. Pump.fun's own fee page does not list a graduation threshold, and older sources quote different figures, so treat any single number as approximate and check the current docs. Pump.fun states a fixed graduation charge of 0.015 SOL per coin.
What it costs to trade
Pump.fun's fee page lists a 1.25% total fee on the bonding curve, split between a 0.30% creator fee and a 0.95% protocol fee. After graduation, the fee on PumpSwap canonical pools is tiered by market cap, starting at 1.25% in the smallest tier and stepping down as market cap grows. Example with sample numbers: a 2 SOL buy on the curve costs about 0.025 SOL in fees. Read more in PumpSwap fees explained.
Curve versus pool
| Bonding curve | PumpSwap pool | |
|---|---|---|
| Price set by | A formula tied to tokens sold | The ratio of the two tokens in the pool |
| Who provides liquidity | The curve itself | The liquidity moved over at graduation |
| Where you see it | The pump.fun page | Chart sites like DexScreener |
The step by step version is in launch to graduation.
Common mistakes
- Assuming a graduated token is safe. Graduation is a mechanical event, not a quality check.
- Buying a copycat. Verify the address, see how to verify a token contract.
- Ignoring who holds the supply. See holder concentration.
Regulators have said that meme coin buyers do not get the protections that come with securities, so you are responsible for your own checks. Not financial advice.
Sources
- pump.fun fees page
- Bitquery docs: pump.fun to PumpSwap graduation
- SEC staff statement on meme coins, 27 Feb 2025
Not financial advice. This site is a community resource, and the QNT memecoin is independent of Quantinuum Ltd. Never spend money you cannot afford to lose.
Frequently asked questions
What is a bonding curve?
A pricing formula built into the token launch that sets the price from how many tokens have been bought, without needing a separate liquidity pool at first.
What does graduating mean on pump.fun?
When a token's bonding curve completes, its liquidity moves to a decentralized exchange pool.
Is pump.fun safe?
The platform is a tool. Individual tokens can be very risky, and scams exist. Do your own research.
Does pump.fun charge fees?
Yes. Its fee page lists a 1.25% total fee on the bonding curve, including a creator fee. Fees can change, so read the current page.
Who gets the creator fee?
The coin's creator receives part of trading fees. The fee page lists 0.30% on the bonding curve.
Is pump.fun the same as PumpSwap?
They are related. Pump.fun is the launch site, and PumpSwap is the exchange pool a token moves to after graduating.
Can I lose all my money on pump.fun?
Yes. Many tokens fall close to zero. Only use money you can afford to lose.
Keep reading
- How to Verify a Solana Token Contract Before You Buy
A checklist to verify a Solana token: confirm the contract address, check mint and freeze authority, supply and holders on Solscan. - How to Read a Memecoin Chart: Price, Market Cap, Liquidity and Volume
A beginner guide to reading memecoin charts: candlesticks, market cap, liquidity, volume and buy versus sell pressure.
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