TLDR
- Pump.fun appears to be developing its own trading platform, discovered through a test site at amm.pump.fun
- Raydium’s token RAY fell 22% plus an additional 5% in response to this discovery
- Only 1.4% of Pump.fun’s launched tokens currently move to Raydium’s platform
- Pump.fun has generated $550 million in fees since March 2024 without having its own token
- The platform has processed $2.4 billion in trading volume in just the last two weeks
A test version of a trading platform discovered at amm.pump.fun has revealed Pump.fun’s potential move toward creating its own automated market maker (AMM) system. The discovery triggered immediate market reactions, with Raydium’s RAY token dropping 22% within 24 hours and an additional 5% shortly after.
The test site displays basic trading functions including swap, deposit, and withdrawal options – key features that could transform Pump.fun from a token launch platform into a full-service trading ecosystem. Security certificates connected to the test site appear genuine, linking directly to Pump.fun’s infrastructure.
Pump.fun has risen to prominence in the Solana ecosystem by offering an accessible platform for token creation. Users can launch new tokens for less than $2, choosing their own supply levels and customizing with meme-related imagery. This low barrier to entry has led to over 8 million token launches since the platform’s debut in 2024.
Currently, new tokens on Pump.fun can move to Raydium’s trading pools after reaching a $69,000 market capitalization. Projects must pay 6 SOL (approximately $950) for this transition. However, data shows that only 1.4% of Pump.fun’s tokens make this move, with fewer than 100 achieving market caps above $1 million.
The platform’s financial performance tells a compelling story. Without issuing its own token, Pump.fun has collected more than $550 million in fees since March 2024. Recent activity shows $2.4 billion in trading volume processed just within the past two weeks.
Technical Analysis
Technical analysis of the test site’s terms and conditions reveals references to a fee structure, though specific rates remain undefined. This suggests Pump.fun could implement competitive trading fees to match current market standards.
A researcher at Presto Research, Min Jung, explained to Decrypt that Raydium currently benefits from a 0.25% fee on all token swaps from Pump.fun graduates. The new platform could redirect these fee streams away from Raydium’s ecosystem.
Domain name service lookups show the test AMM’s branch domain hasn’t been fully integrated, indicating ongoing development. However, the security certificates’ authenticity suggests serious intent behind the project.
The market’s reaction reflects concerns about future trading volume distribution. Raydium currently processes around $500 million in daily trading volume across various markets, including major Solana pairs and stablecoin trading.
Several tokens launched through Pump.fun have achieved remarkable success, including fartcoin (FART), which reached a market capitalization in the billions. These successes demonstrate the platform’s ability to generate high-value projects despite the low progression rate to Raydium.
Pump.fun has established itself as one of crypto’s most profitable applications, achieving this without relying on token sales for revenue. At its peak, the platform processed over $5.3 million in daily fees.
Neither platform has officially commented on the situation. Requests for statements from both Pump.fun and Raydium representatives have gone unanswered, leaving market participants to speculate about future developments.
The discovery comes as Pump.fun continues to grow its user base and trading activity. An independent AMM could allow the platform to retain more value within its ecosystem rather than directing it to external trading venues.
Market observers note that Raydium maintains diverse trading pairs beyond Pump.fun tokens, including major Solana markets. This diversity could help buffer against potential volume losses if Pump.fun launches its own trading system.
The test platform’s emergence suggests a strategic move by Pump.fun to capture more value from its token ecosystem. By providing its own trading infrastructure, the platform could offer a complete token lifecycle from creation through active trading.
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