PUMP Describes Itself As

Pump.fun is a cryptocurrency launchpad and trading platform on the Solana blockchain that lets anyone create their own token (often meme coins) in just minutes. Launched in January 2024 by co-founders Alon Cohen, Dylan Kerler, and Noah Tweedale, the platform’s goal is to democratize token creation and make it easy and “fun” for everyday users to launch new coins.

Project Function

User-Friendly Interface: All user accounts are pseudonymous (identified by a Solana wallet address or nickname), and new token listings appear in a catalog-style “board” similar to an imageboard or online forum thread. The interface highlights “now trending” coins and real-time leaderboards of top-performing tokens, so users can easily see which memes are pumping. There’s also an integrated chat and comment system that lets the community discuss coins in real time.

Instant Trading & Bonding Curve Mechanics: A core feature of Pump.fun is that every new token comes with instant liquidity and automated price discovery through a built-in bonding curve market maker. As soon as a coin is launched, users can buy or sell it on Pump.fun without the creator needing to manually set up any exchange listing or liquidity pool. The platform uses a bonding curve model (a type of automated market maker) that dynamically adjusts the token’s price based on demand.

Gamification and Unique Social Features: Pump.fun stands out for turning token trading into a highly engaging, gamified experience. One notable feature is the platform’s built-in livestreaming function, which lets token creators broadcast live video to promote their coins.

Token Utility 

The PUMP token is designed to give holders a stake in the platform’s success. According to published token plans, the total supply is 1 trillion PUMP tokens (fitting the meme theme of a huge supply). A quarter of those tokens were allocated to the public sale (to raise funds for the project), and another 10% set aside for community airdrops to reward early users. The remaining tokens are earmarked for the team, investors, and a treasury for future development, generally locked up on long-term vesting schedules. The utility of PUMP token comes primarily from revenue sharing and governance. Pump.fun’s team has stated that 25% of all platform fees will be used for regular buybacks and burns of PUMP token

About The Founders

Pump.fun was created by a small team of entrepreneurs, Noah Tweedale, Alon Cohen, and Dylan Kerle. According to interviews and documents, the founders started Pump.fun out of their own experiences and frustrations with trading memecoins – they were fed up with shady token launches and frequent “rug pull” scams in the space, and wanted to create a safer, more standardized (and entertaining) way for people to launch and trade new coins.

Risks of PUMP

Like an investment in other crypto assets, there are some general risks to investing in PUMP. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in PUMP is subject to the following specific risks:

• PUMP operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with PUMP. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The PUMP community and Pump.fun founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of PUMP have no recourse to the PUMP community, Pump.fun founding team, or Uphold if PUMP declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing PUMP on the Uphold Platform, Uphold performed due diligence on PUMP and determined that PUMP is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of PUMP, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of PUMP.
• Any marketing materials put forward by the PUMP social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with PUMP, including any code defects, security breaches and other threats concerning PUMP and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with PUMP, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of PUMP.