- The crypto community is divided on Pump.fun’s new plan to pay meme coin developers
- Some consider the move as an advantage to developers while others think it leaves investors prone to rug pulls
- The new plan includes making meme coin creation free with the platform rewarding developers of successful projects
Three months after a former employee tried to kill the project, Pump.fun has undergone an upgrade allowing meme coin developers to launch projects for free. The platform disclosed that it will give developers roughly $80 in SOL when their coins complete a bonding curve. Although some in the community consider the move an advantage because it removes the barriers to launching new meme coins, others see it as an open door for malicious developers to conduct rug pulls, a vice that has plagued the industry for years.
The First Buyer Pays the Bill
In an X post, Pump.fun revealed that the cost of launching a meme coin using the platform will be “paid by the first buyer of the coin.” The amount paid to meme coin developers will come from Pump.fun’s migration fee, adding that this helps incentivize developers “to get their coin[s] to 100%.”
Today we’re introducing 2 HUGE changes to the pump fun mechanism (in beta)
1) Coin creation is FREE
2) Coin creators receive 0.5 SOL (~$80) when their coin completes its bonding curve
How does it work?
1) Instead of the creator having to pay ~$2 for coin creation, this cost… pic.twitter.com/Zp7DCJQoya
— pump.fun (@pumpdotfun) August 9, 2024
The platform also noted that a coin is put on the Solana blockchain when it records its first purchase. A coin completes a bonding curve when it hits a market cap of at least $69,000, after which it’s listed on DEXs.
The upgrade has however attracted both support and criticism from the community. Those supporting the change view it as a way to empower developers to create more coins while also increasing focus on their coins.
A Free Rug Pull Season?
Some of those criticizing the upgrade said it paves the way for “free rug pulls.” Others said it’ll lead to the “hyper inflation of coins” as devs chase the $80 reward. Some also insinuated that the simplified meme coin creation process will attract inexperienced developers.
FREE RUG PULLS LETS GOOOOOO
— CAPO (@CapoMetaDao) August 9, 2024
With the upgrade attracting criticism, it’s to be seen whether Pump.fun will address issues like how it plans to protect investors against rug pulls and identical tokens.
