Crypto’s biggest tech marriage is headed to divorce.
At present, the Solana Memecoin Launchpad Pump.fun migrates tokens that are liquid enough to be traded on Raydium. Raydium is an automated market maker based in Solana. Raydium has found the so-called “graduation mechanism” to be very lucrative: The Pump.fun pool accounted for 36 percent of DEX 2024 swap revenues totaling $154 million.
A recent URL, amm.pump.fun, was posted on the internet, while an Onchain Sleuth revealed evidence that pump.fun is testing its AMM’s liquidity pool. Raydium tokens are down 40% in value since Sunday, as investors react to the looming threat of a decline in revenue.
In the world of open-source crypto, AMMs can be easily created. For some time now, rumors about pump.fun wanting to make its own have been swirling around Solana. By graduating memecoins to its own AMM, pump.fun would vertically integrate the token launch process — and potentially push its already-gaudy revenue figures even higher.
Pump.fun was also in contact with at least one potential AMM supplier. Two sources familiar with the situation told Blockworks that Ellipsis Labs had contacted Launchpad to discuss the implementation of Plasma, an AMM intended to limit sandwich attack. Pump.fun rejected the offer.
The launch of an AMM within the company seems like a rather obvious decision. Pump.fun is reportedly planning to release a token. Having its own AMM that collects fees could add value to the token. It will depend on whether memecoin traders find the AMM of pump.fun liquid enough for them to invest their time.
Infra, an anonymous Raydium core member who posted on X yesterday warned that Pump.fun was making a splash. “strategic miscalculation” Raydium is launching their own AMM. “liquidity that helped Pump tokens thrive.”
Uncertain is how the public will view any future Pump.fun AMM. Memecoin’s launchpad has a closed-source code, and releasing an AMM that is fully open-source would mark a change.
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