Pump.fun launches rewards for creators

Yesterday, Pump.fun announced that it has launched a new reward program for creators. 

This is the classic revenue sharing program, that is, sharing of revenue, particularly focused on trading. 

The new rewards of Pump.fun

The program launched yesterday by Pump.fun indeed plans to reward creators with 5 basis points (0.05%) in SOL every time someone makes a transaction on their tokens.

In other words, when a user creates a token on the platform, from that moment on, every token exchange on the platform will generate a small revenue for the user themselves. The revenue will be 0.05% of the transacted amount and will be paid to the user in SOL. 

SOL is the native cryptocurrency of Solana, meaning it is the one used to pay fees on this blockchain, and since Pump.fun is based on Solana, the fees on on-chain transactions on the platform are indeed paid in SOL.

The example given by Pump.fun to explain this process is that of a hypothetical user who creates a token that generates a trading volume of 10 million dollars on the platform: in such a case, the revenue sharing program will compensate the user with $5,000 in SOL. 

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How to participate in the new Reward program of Pump.fun

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To be able to use this program, it is necessary to have created a token on Pump.fun. 

In the event that the token has just been created, or is already in the trading phase, the program would already be active, according to what the platform stated.

At that point, the creator can already apply for the collection of the rewards by going to their personal profile within the platform, clicking on “coins,” and requesting the rewards. 

Alternatively, it is possible to create new tokens, and once created, perform the procedure mentioned above. 

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The platform Pump.fun

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Pump.fun is indeed a platform that allows anyone to create crypto tokens on Solana and distribute them online. 

The platform is legal, although not in all countries of the world, but many tokens that are created and distributed on Pump.fun are scams, or in any case pump&dump schemes intended only to allow the creators of tokens to cash in criptovalute (primarily SOL).

A few days ago, Solidus Labs published a report in which it revealed that almost 99% of the tokens on Pump.fun are in fact fraudulent initiatives, or similar.

In other words, they are tokens launched by their creators solely with the aim of stealing crypto from their followers, generally using lies and false promises to induce them to purchase tokens that are, in fact, devoid of any kind of value. 

Often in this way speculative bubbles are generated that in relatively little time then burst, leaving the buyers with little more than a handful of flies. 

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The tokens

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The crypto without value, however, are not a recent phenomenon. 

Just think that just a couple of years after the creation of Bitcoin, which happened in 2009, there were already those who were creating other cryptocurrencies solely with the aim of taking advantage of that “trend” to get rich. 

The turning point occurred in 2015, with the launch of Ethereum. In fact, this blockchain also allowed the launch of non-native tokens, whereas previously, to launch a new crypto, it was necessary to create a new blockchain. 

On Ethereum, however, anyone can launch a token based on the Ethereum blockchain, it’s just that initially this operation was neither simple nor economical. 

Solana, launched in 2020, has made this type of operation more economical, and Pump.fun, launched in 2023, has also made it easier. 

Now, thanks to Pump.fun and Solana, creating a token on this blockchain has become very easy and very economical, so much so that over the past twelve months more tokens have been created than in the entire previous history of crypto. 

The price of the crypto SOL (Solana)

Note that the price of SOL has greatly benefited from all this. 

After reaching a peak above $200 in 2021, it experienced a real collapse during the subsequent bear-market, dropping to $9. 

But starting from January 2023, it recorded a first strong rebound, followed by another even stronger one between the end of 2023 and the beginning of 2024. It is no coincidence that this was also the moment of the launch of Pump.fun, because what caused the price of SOL to rebound in 2023 were precisely the memecoins on Solana, and Pump.fun did nothing but seize the bull by the horns. 

In March of last year, SOL had almost reached $200 again, and although in the following months it fell back below $125, with the Trump trade it soared again, reaching a new all-time high in January of this year at nearly $300. 

It should not be forgotten that a few days before the all-time high of SOL, Trump announced the launch of his memecoin right on Solana, which greatly benefited SOL, but also had a strong negative impact on ETH.