Pump.fun Launches Its Own DEX, PumpSwap, on Solana Amidst Intensifying Competition

The «meme token factory» Pump.fun has announced the launch of its own decentralized exchange (DEX) called PumpSwap on Solana, parting ways with Raydium.

This development comes amid heightened competition among platforms trading «funny coins» within the Solana ecosystem.

Now, meme tokens that draw liquidity from Pump.fun will be automatically listed on PumpSwap, whereas previously, they migrated to Raydium.

The «meme token factory» stated that the new DEX «operates similarly to Raydium V4 and Uniswap V2,» with a focus on simplifying trading for users.

According to the company’s announcement, the previous model of migrations «caused inconveniences, slowed down the momentum of new projects, and deterred newcomers.» Tokens can now be moved instantly and without fees.

The launch of PumpSwap coincided with Raydium’s announcement of its own platform for launching meme coins, named LaunchLab, aimed at competing with Pump.fun.

The rivalry between the two players could significantly reshape the DeFi landscape on Solana, especially given the decline in trading volumes for «funny coins» observed since January.

«We welcome competition, as it ultimately benefits the users,» stated one of the co-founders of Pump.fun, Alon, in an interview with Cointelegraph.

The «meme token factory» also plans to introduce monetization options for creators of «funny assets,» mirroring a popular feature of the competing protocol GoFundMeme. In the future, the platform intends to share a portion of its revenue with teams behind such projects.

If this initiative proves successful, «millions of dollars could be directed towards connecting creators with their communities and incentivizing higher-quality launches,» emphasized officials at Pump.fun.

It is worth noting that in March, the GMCI Meme index dropped by 90% compared to its peak in December.