Pumpfun Unveils $3M Venture Arm as PUMP Token Jumps Nearly 3%

Pumpfun - the crypto launchpad that's been lighting up the memecoin scene - is branching out in a big way with the launch of a dedicated...

Quick overview

  • Pumpfun is launching a new venture investment arm called Pump Fund, moving beyond just token creation.
  • The Pump Fund will invest $3 million in early-stage crypto projects, with community-based decision-making.
  • Teams will retain 10% of their token supply as an incentive to develop their projects long-term.
  • The PUMP token has seen a 2.78% increase, reflecting growing optimism about Pumpfun's future and ongoing buyback efforts.

Pumpfun – the crypto launchpad that’s been lighting up the memecoin scene – is branching out in a big way with the launch of a dedicated venture investment arm called Pump Fund. And by branching out, I mean it’s finally starting to make strategic moves to move beyond just being a token creation factory.

The news came via a pretty dry X thread, but don’t let that fool you – this is a significant shift for the company, one that’s going to position Pumpfun as a much more serious player in the crypto game. Rather than just churning out tokens at breakneck speed, the company’s now setting its sights on building a proper startup ecosystem.

At the heart of this change is the new Pump Fund initiative, which promises to focus on investing in early-stage crypto projects from within the Pumpfun community – basically making them a sort of crypto incubator. The twist here is that it won’t be some big-shot VC firm making the decisions – instead, the projects will be judged by the community itself.

How Pump Fund Actually Works

So how does this all play out? The basic idea is that teams get a share of $3 million to develop a live crypto project and create a token that’s tied to its utility. The catch – the team gets to keep 10% of the total token supply as a reward, which means they’ve got a genuine incentive to keep working on the project in the long term.

The key details of the Pump Fund plan are:

  • $3 million in funding to start with.
  • 12 projects in the first round.
  • Decentralized judging – no centralized panels here.
  • Projects will have to create their own native tokens to get funding.

This all sounds a lot like the Glass Fund Foundation that Pumpfun launched last summer to give memecoin creators a bit of a safety net during market downturns. And in a way, it is – but this time around, the company’s looking to use that foundation as a way to create a bit more diversity in its revenue streams and get more people locked in to the platform.

Pump Token Gets a Boost

And in case Pumpfun really needed a reminder of its importance, the PUMP token went and rallied by 2.78% over the last 24 hours. That’s right – in the face of a broader crypto market downturn, the PUMP token actually managed to outperform pretty much everything else. And as of now, the token is trading in the $0.0259 to $0.0266 range, which is generally seen as a sign that people are becoming a bit more optimistic about the future.

That optimism’s been building up for a while now – remember that time Pumpfun revamped its creator fee model to make things a bit more fair for token creators? Yeah, that’s basically been driving a bunch of new token launches and platform activity. And on top of all that, Pumpfun’s been buying back a bunch of PUMP tokens, to the tune of approximately $250 million, which has reduced the circulating supply by more than 19%, giving the token a bit of a boost.

Pumpfun’s confirmed that it’s going to keep buying back tokens, which has to be making everyone think that the company’s confident in its long-term prospects. But even without that, it’s pretty clear that Pumpfun’s looking to branch out in more ways than just one – and that could be huge for the company, and the wider crypto ecosystem, in the long run.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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