Oh dear, it seems the token for the Solana-based decentralized exchange (DEX) and automated market maker (AMM) Raydium has taken a nosedive on Feb. 24! All this drama is unfolding because of whispers that the memecoin launchpad Pump.fun is cooking up its own AMM feature. Can you believe it? 😲
The juicy gossip comes from the X account “trenchdiver,” who, in a post that could rival any soap opera, claimed that Pump.fun is busy testing its own AMM liquidity pools. This would allow users to trade crypto against liquidity in a smart contract instead of against a counterparty. Because who needs a counterparty when you can have a smart contract, right? 😂
Trenchdiver even shared a link to a website flaunting an AMM interface with Pump.fun’s branding, proudly declaring that the feature is in beta. Beta? More like “please don’t break the internet” mode! 😅
If Pump.fun launches its own AMM, it could snatch away some of Raydium’s business. Currently, when a Pump.fun token gets enough trading action, it completes a “bonding curve” and is launched on Raydium for further trading. Talk about a dramatic exit! 🎭
“It seems they are planning to have pump tokens graduate to their own pools instead of Raydium so they can either extract more fees on Solana or have some mechanism to reward token holders,” trenchdiver said. Sounds like a plan, doesn’t it? 🎓
In a plot twist worthy of a reality show, a Feb. 20 on-chain transaction shared by trenchdiver apparently shows Pump.fun adding its first test token to its AMM liquidity pool. The test token, named Snowfall (CRACK) — yes, you heard that right, CRACK — shot up to a peak value of $5.4 million an hour after trenchdiver’s post. I mean, who doesn’t want to invest in something named after a 2017 TV series about the 1980s crack epidemic? 📺💸
But hold your horses! It has since experienced significant volatility, with its price plummeting around 40% in the last hour and its market cap dropping to about $1.8 million. Talk about a rollercoaster ride! 🎢
Pump.fun has yet to publicly acknowledge or confirm plans to launch its own AMM pools. Maybe they’re just playing hard to get? 🤷♀️
Meanwhile, podcast host Tyler Warner chimed in on X, declaring that Raydium (RAY) was “falling off a cliff” after trenchdiver’s post, with the token down 25% to $3.22 over the last 24 hours. Ouch! That’s gotta hurt! 😬
Shoal Research founder Gabriel Tramble added his two cents on X, noting that the standard Raydium AMM takes a 0.25% fee on swaps. But wait! Pump.fun could charge a higher fee and “potentially double its revenue if market conditions persist” with its own AMM pools. Because why not squeeze a little more out of the “degens” who are used to paying high fees for trades? 💰
DefiLlama data shows Pump.fun has raked in over $500 million in fees since its launch in January 2024. Now that’s what I call a money-making machine! 💸💸
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2025-02-24 09:57