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Raydium launches its own meme coin launchpad LaunchLab on the Solana chain
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LaunchLab is a direct competitor of Pump.fun in the Solana meme coin marketplace
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Pump.fun launched PumpSwap recently, its own DEX as competition intensifies
LaunchLab, the new platform from Raydium, a well-established decentralized (DEX) exchange on the Solana Blockchain, will directly compete with Pump.fun, the meme coin launchpad, by launching its LaunchLab platform.
This announcement comes only days after Pump.fun launched its own DEX PumpSwap and is now facing a revenue drop and increased competition within the Solana ecosystem.
Pump.fun’s recent success has been mixed. While it attracted millions and generated over $650 million in revenue, the majority of the 8.7million tokens created lost value.
Only four companies have a market cap above $100 million. Pump.fun launched PumpSwap in response to a drop of nearly 60% in monthly revenue.
Pump.fun Performance
Pump.fun, which was launched in January 2024 attracted many users who wanted to create their meme coins. The platform allows anyone who has a Solana wallet the ability to generate tokens, without needing to have any coding knowledge.
Pump.fun generated over $600,000,000 in revenue. However, the majority tokens have either lost value or disappeared from the market. Only four tokens have a market capitalization above $100 million. This highlights the volatility of the meme coin market.
Why did Pump.fun introduce PumpSwap?
Pump.fun, in response to the recent drop of revenue, launched PumpSwap. This is a native, decentralized exchange that was built directly on the Solana Blockchain. This new platform’s primary goal is to speed up token launches by eliminating the previous reliance upon liquidity pools on Raydium.
Related to Pump.fun – PumpSwap: Why we launched our own DEX PumpSwap
Tokens are now launched immediately after the bonding curve has been completed, and migrations can be done instantly, without any fees. This change resolves a previous issue where the platform charged 6 SOL for migration, which was a barrier to many users.
PumpSwap Fees and Security Measures
PumpSwap charges a 0.25% commission on each trade, similar to other decentralized exchanges. This fee is split between liquidity providers and the Pump.fun Protocol.
Pump.fun, in addition to the fee structure, has placed a high priority on security. PumpSwap was subjected to nine independent audits. The platform has also plans to open-source its program code in order to improve both security and transparency for its users.
Related to: Pump.fun Token Graduation rate plunge: Is the platform in trouble?
PumpSwap is launched at a time of increasing competition in the Solana memecoin eco-system.
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