Trade on Pump Fun is the simplest route to securing $1M. But without certain knowledge, you will lose your money. Insider strategy on how to trade on Pump Fun safely below.
Trading mem coins is the most profitable way at the moment. However, few people know that most of the tokensd are launched on pump fun. Using pump fun you can easily make more than 500x, but there is a chance to get caught in a scam project.
About @pumpdotfun
Pump Fun is a platform where users can discover and trade meme coins in real-time on Solana blockchain. The platform uses a bonding curve model to adjust token prices based on supply and demand, ensuring fair and dynamic trading. Pump fun’s success is attributed to its user-friendly interface, low fees, and unque mechanisms.
Quick and low-cost token launches have democratized creation, boosting platform participation. Pumpfun now generates $200,000 to $500,000 in daily fees.
Analysis
The project analysis will consist of items such as:
⫸ Idea
⫸ Similar meme coins
⫸ Developer’s work
⫸ Website
⫸ Community
⫸ Live streams
Idea
A key aspect is the concept of the token. If it created from recent meme, it already stands out. Avoid tokens where previews are created with AI. This indicates that the project’s developer likely did not put much effort into its development. The lack of promising strategies can lead to a rug pull.
Similar meme coins
Some creators try to replicate the success of large meme coins when creating their memes. In order for those who buy them to think that this coin can bring the same profit as the original token. However, this is not the case in most cases these tokens are scams.
Developer’s work
Dev work is an integral part of every project, so it is worth paying attention to such factors as:
⫸ Dev allocation (over 7% is concerning)
⫸ History of tokens (Did the last his tokens hit Raydium or was it a rug pull?)
⫸ Burn percentage, pre-paid DEX involvement, and active VC communication
Website
Not all projects have a website, but if they do, it’s a good sign. But you need to pay attention to its quality. A unique, well-designed site signals a serious, committed project team. If the site is unprofessional or copied, it raises red flags about the project’s legitimacy.
Community
The positive community’s reaction is key to a token’s growth. Analyzing sentiment is crucial, as strong enthusiasm can boost value, and even hype can be a positive sign if it drives interest. Understanding this helps in assessing the token’s long-term potential versus short-lived excitement.
Live streams
Avoid tokens with live-streaming developers, as this often signals a rug pull. These projects typically use hype to distract from weak fundamentals. Focus on projects with solid fundamentals and transparency.
Tips
After conducting a comprehensive review of the token, you may consider making a purchase. However, always keep the potential risks in mind, since the token’s price can be unpredictable. As a precaution, avoid investing substantial sums, particularly if you’re just starting out.
