Solana-based Token Issuing Platform Pump.Fun may soon launch its own automated market manufacturer (AMM), according to a URL connected to the site. However, there has been no public notice yet.
Amm is an exchange system in crypto markets that makes trade easy by using a liquidity pool of normal and at least two tokens. Instead of matching buyers and salespeople as a traditional exchange, cleverly sets the prices based on supply and demand and allow trades to be treated without a counterparty.
“Amm.pump.Fun” shows a swap product in the creation with a sales and purchase setting along with a deposit and withdrawal feature. It is a first to pump.Fun that lets any issue a token for less than $ 2 in capital, after which they choose the number of tokens, theme and meme image to accompany it.
When the market value of any token reaches $ 69,000, part of the liquidity is deposited to the Solana-based exchange Raydium and burned (or when the tokens are taken out of the supply permanently).
Pump.Fun’s own amm would mean that tokens are no longer migrated to Raydium, or at least that’s what the market seems to dampen the mood of the latter beam -tokens. Ray has fallen 25% over the last 24 hours on the apparent development.
“It seems that they are planning to have the pump -token candidate for their own pools instead of Raydium,” said Trader @trenchdiver101, who first marked the development. “They can either extract more fees on Solana or have some mechanism to reward token holders.”
Although part of Raydium’s overall trading activity is derived from pump.fun -tokens, the exchange supports several other top markets – such as Solana (Sol) to stablecoins and others – contributing to its $ 500 million in average daily trading volumes.
As such, the product could further encounter the revenue and excess of pump. Fun, which has no token, but is among the most profitable crypto applications in the past year – a rare business in a market where companies are strongly dependent on token sales to generate income.
Pump.Fun has a pocket over $ 550 million in total fees since Mar.2024, data shows at $ 2.4 billion in trading volumes over the past two weeks. Over 8 million tokens have been issued on the platform since the launch of 2024, with a few, such as speedcoin (speed), reaching billions of dollars in market value.
