Memecoins and launchpads
How bonding curves work, what happens at graduation, and the checks that filter out most rugs.
Memecoins are tokens driven by culture and attention rather than cash flows. Solana is the center of memecoin trading, and a huge share of its DEX volume and fees come from them. Some go up 100x. Most go to zero.
How launchpads work
On pump.fun anyone can create a token in seconds, for free. It starts on a bonding curve: a formula that raises the price with every buy and lowers it with every sell. There's no liquidity pool yet; the curve itself is the market.
When buying pushes the market cap to roughly $69K, the token graduates: it migrates to PumpSwap, where it trades in a normal pool. Raydium's LaunchLab, Meteora's Dynamic Bonding Curve and Orca's Wavebreak follow the same idea with their own pools.
Why most tokens fail
- Insider supply. Creators and snipers buy the first tokens for almost nothing, then sell into later buyers.
- Bundles. One person buys from many wallets in the first block to hide how much they hold.
- No reason to hold. When attention moves on, so do buyers.
- Copycats. Fake tokens with the same name appear within minutes of any hit.
Checks before you buy
| Check | Where | Red flag |
|---|---|---|
| Mint address | Official X account | Found by name search |
| Mint & freeze authority | Solscan | Either still active |
| Top holders | Solscan, Birdeye | Top 10 hold most supply |
| Dev wallet | Terminal (Axiom, GMGN) | Dev selling early |
| Bundled launch | Terminal tools | Many wallets bought in block 1 |
| Liquidity | DEX Screener | Tiny pool vs market cap |
pump.funLaunch a token in seconds
AxiomTrading terminal for memecoins and perps
SolscanBlock explorer
DEX ScreenerReal-time pair charts
Curated raises are different
MetaDAO runs four-day raises where everyone pays the same price and oversubscribed money is refunded. Projects become ownership coins: the treasury is controlled by decision markets rather than the team. It's still risky, but it's a structured raise, not a free-for-all launch.
Rules for playing anyway
- Use a separate wallet with a fixed budget.
- Decide your exit before you enter, and take profits in steps.
- Keep slippage reasonable and size small; thin pools punish big orders.
- Never buy a token someone DMs you about.
Key takeaways
- Launchpads like pump.fun sell new tokens on a bonding curve, then graduate them to a DEX pool.
- Most new tokens go to zero; treat memecoins as entertainment money.
- Check holder concentration, dev wallet, bundles and authorities before buying.
- Curated raises like MetaDAO are a different, more structured model.
Check yourself
3 questions. Get them all right to mark this lesson complete.
Try it
Facts checked Oct 19, 2026. Educational content, not financial advice.
