Ever felt like the world of crypto is a rollercoaster that only the tech-savvy can ride? Think again. One moment you’re scrolling through social media, and the next, you’re seeing a digital coin inspired by a viral meme skyrocket by 30,000%.

Welcome to the wild universe of memecoins, where tokens like PEPE, DOGE, SHIB, and a dozen others keep making headlines as they blast off in value overnight.

But this article isn’t just about quick profits and hype cycles, it’s about understanding how platforms like PinkSale and the PumpFun model have shaped the way these tokens are launched, marketed, and traded, with each of them pushing new boundaries for what’s possible in the crypto space.

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Origins

Meme coins began as a joke, a novelty born from the internet’s love for quirky trends. Dogecoin is the best example, a coin created as a parody but now standing as one of the most recognizable names in crypto. What started as a Shiba Inu dog in 2013 became a cultural icon, and during the 2021 bull market, Dogecoin surged to become a $90 billion asset at its peak.

Fast forward to today, and meme coins aren’t just a passing fad, they’re a market force.

PinkSale facilitated over 20,000 projects and raising more than $1 billion in funds. The platform has attracted millions of investors monthly, offering a user-friendly interface for token creation and sales. PinkSale supports multiple blockchains, including Ethereum, Binance Smart Chain, and Polygon, providing a diverse ecosystem for token projects.

PumpFun has seen rapid growth since its launch in January 2024. By October 2024, it had facilitated the creation of over 4 million tokens, with an average of nearly 17,000 new tokens daily. In October alone, PumpFun generated $93 million in revenue, marking a 207% increase from the previous month. The platform’s success is attributed to its transparent token creation process and the high demand for meme coins within the Solana ecosystem.

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PinkSale - technical

PinkSale uses smart contracts to automate the token launch process. These contracts include mechanisms for liquidity locking, meaning a percentage of the funds raised during the launch are automatically locked into liquidity pools on decentralized exchanges. This ensures the token has the necessary liquidity for trading post-launch and helps prevent “rug pulls” (a scam where developers drain liquidity after a launch).

For example, when a project uses PinkSale’s FairLaunch, the liquidity locking function ensures that a certain portion of the funds raised is locked in liquidity for a fixed period, often 6 months or longer. This brings credibility to the project and safeguards early investors.

Mathematically, this works by calculating a ratio between the amount of liquidity added and the market cap of the token at launch. Here’s a simple implementation in Solidity:

// Liquidity lock function
function lockLiquidity(address token, uint256 amountToken, uint256 amountETH) public {
    require(amountToken > 0 && amountETH > 0, "Invalid amounts");
    IERC20(token).approve(address(uniswapRouter), amountToken);
    uniswapRouter.addLiquidityETH{value: amountETH}(
        token,
        amountToken,
        0,  // slippage is acceptable
        0,  // slippage is acceptable
        address(this),
        block.timestamp
    );
}

The contract ensures that liquidity is locked for a set period, preventing creators from withdrawing it and protecting the price from crashes due to liquidity being removed.

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Distribution

Tokenomics, such as capping the amount each investor can buy, help prevent whales from manipulating the price. Here’s a simplified code for capping purchases:

uint256 public maxPurchase = 1000 * 10**18; // Max purchase per wallet

function purchaseTokens(uint256 _amount) public {
    require(_amount <= maxPurchase, "Exceeds max purchase limit");
    // Process purchase logic

The platform also requires KYC compliance for token creators. While this may seem like a headache for many, it’s a much-needed feature in the crypto space to help mitigate scams and shady launches. In a 2023 report, PinkSale processed over $100 million in liquidity locked through its system, highlighting both the demand for secure, transparent launches and its growing influence in the space.

PinkSale isn’t just about token creation, it’s about creating a marketplace where fairness and transparency set the foundation for long-term growth.

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PumpFun - technical

The PumpFun model brings a different level of excitement. It’s not just about token launches, it’s about creating massive, short-term buzz that propels token prices sky-high. Often tied to meme coins, the PumpFun system uses bonding curves to manipulate the supply and price of tokens.

Bonding curves are mathematical models that determine token price based on the quantity in circulation. When demand increases, the price increases automatically. This creates a dynamic, often volatile market. The more tokens that are bought, the higher the price climbs, giving early investors a massive profit potential—but at the cost of higher risk for those entering late.

Mathematically, the bonding curve could be represented as: P(S) = a \times S^b + c

Where:

• P(S)  is the price of the token at a given supply  S ,
• a ,  b , and  c  are constants that define the curve’s shape,
• S  is the current supply of tokens.

// Simple bonding curve example
uint256 public constant a = 1;
uint256 public constant b = 2; // Exponential curve
uint256 public totalSupply;

function calculatePrice(uint256 _supply) public view returns (uint256) {
    return a * (_supply ** b);
}

function mintTokens(uint256 _amount) public payable {
    uint256 price = calculatePrice(totalSupply + _amount);
    require(msg.value >= price, "Insufficient funds to mint tokens");
    totalSupply += _amount;
    // Mint tokens logic
} 

However, it’s not all rainbows and profits. The same volatility that makes PumpFun enticing for traders also brings substantial risks. A flash loan exploit in May 2024 saw an attacker manipulate the platform’s bonding curve, resulting in a $2 million loss. This vulnerability was swiftly patched, but the episode raised serious questions about the security of such speculative platforms.

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Every Chain Gets a Degen Module

The success of the PumpFun model on Solana has inspired other blockchain ecosystems to introduce their own versions of this speculative approach. Ethereum, Binance Smart Chain, and almost every network have seen the introduction of similar models, proof that the degen spirit is no longer confined to Solana.

The use of smart contract-driven tokenomics, bonding curves, and community-driven market dynamics will only continue to evolve. While it may seem like pure speculation, these models offer intriguing possibilities for decentralized finance, where liquidity is more dynamic and prices respond directly to demand.

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Will the Fun Last?

As much as the PumpFun model and PinkSale have revolutionized the token launch process, they’re not without their flaws. Speculative bubbles, security risks, and market manipulation remain at the core of these systems. But they also represent the vibrancy and excitement that is the hallmark of crypto, a space where anything can happen, and where creativity meets chaos.

Looking ahead, the balance will need to shift. While meme coins may continue to drive attention, the next evolution in blockchain tokenomics will need to offer more than just speculative gains. Will we see a maturing of the meme coin sector, or will we remain stuck in the cycle of hype-driven trading?

The crypto space is unpredictable, but that’s what makes it thrilling. As long as there’s a community-driven spirit and technological innovation behind projects like PinkSale and PumpFun, we can expect even wilder, more disruptive things on the horizon.

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Sources

1. PinkSale Official Documentation:

2. Coindesk Overview on PinkSale:

3. CoinEdition Article on PumpFun:

4. CoinGape on PumpFun’s Revenue:

5. The Defiant on PumpFun Exploit:

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