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author | li si

editor | zhao li

high-quality investment targets are becoming increasingly scarce.

in the past three months, the nasdaq has fallen by more than 4% in repeated fluctuations. buffett, who believes in heavy positions, has significantly reduced his positions and holds more than 270 billion us dollars in cash. obviously, he does not think there are any particularly worthwhile investment targets at the moment. the fund has changed from "low risk, low return" to "high risk, low return". in the cryptocurrency market, bitcoin has fallen by 20% since june and has entered a sideways phase. the "winter theory" of cryptocurrency has emerged again.

however, there are hot assets in every era.

the cryptocurrency meme coins, born in popular culture, are still creating myths. in the first half of this year alone, meme coins have risen by more than 70%, making them the highest-yielding sector among all cryptocurrencies. various virtual coins with themes such as elections, animals, hats, and even the game "black myth wukong" have achieved hundreds or thousands of times growth.

the public chain ecosystem behind the memecoin issuance platform has also grown. in august, sunpump, a fair launch meme coin platform in the tron ecosystem, was launched. in less than two months, more than 75,000 projects have been created on sunpump, with cumulative revenue exceeding us$4.5 million. among them, the most popular meme coin "sundog" achieved a 500-fold growth in just one day and reached a market value of us$200 million in less than a week. in addition, there are a large number of meme coins that have grown hundreds or thousands of times.

of course, the b-side of these advantages of meme coins is fragility. from musk's words that caused dogecoin to plummet, to blad's "runaway" incident, the risks of meme coins have deterred many users. and this is exactly what the platform sunpump is trying to solve.

in the volatile crypto assets, risks are always present. but behind the thousand-fold possibility, sunpump is working hard to provide users with certainty.

01 from dogecoin to wukongcoin

all long video platforms can create hits, but the reason why netflix has become the valuable long video platform is that it can continue to create hits - this is also the advantage of meme coins.

in april 2021, following a tweet from musk, dogecoin, which features the world's best emoji dog head, surged. although dogecoin plummeted a month later due to musk's statement that "dogecoin is a scam", the story of the meme coin did not end there, but instead created one growth myth after another.

figure: the total market value of meme coins exceeded 60 billion us dollars

after all, the scalability of meme culture is unlimited. from emoticons to games, from celebrities to technological products, any kind of popular culture in the web2 world can be mined into meme coins with a market value of tens of millions after being combined with web3.

communities create meme coins, and meme coins can in turn create communities.

in january 2024, pump.fun was officially launched on the solana blockchain, ushering in a new round of meme coins. the latest news shows that pump.fun has become the fastest growing dapp in the history of the crypto economy, achieving $100 million in revenue in just 217 days, surpassing ena's 251 days.

however, in an open world of wealth, it is difficult for a platform to stand out alone. on august 12, sun.io, a dex in the tron ecosystem, launched sunpump, becoming a strong challenger to pump.fun. the birth of sunpump is also a story of the community: sun dao previously launched an extension vote for the meme product and received an overwhelming vote in favor.

on the first day of sunpump beta's launch, it gained hundreds of users and hundreds of meme coins were deployed. among them, the market value of trony coin, which combines cute dog elements, increased by more than 685 times, with a market value of nearly 3 million us dollars, and all this was achieved within 24 hours.

in the first week of launch, the market value of many popular projects on sunpump, including sundog and suncat, exceeded 10 million us dollars. the platform's revenue reached 190,000 us dollars, exceeding pump.fun.

image: sundog meme

soon after sunpump went online, it encountered a new popular culture: "black myth: wukong". this game broke many records of global buyout games, and some traders created a corresponding meme coin "sunwukong" for it. this meme coin landed on sunpump and subsequently reached a market value of 28 million us dollars. on the day when the number of concurrent online users of "black myth" exceeded 3 million, the entire memecoin mainstream trading currency reached 2,758, with a total market value of 42 billion us dollars.

as of september 5, the total number of sunpump projects created has reached 75,752, with cumulative revenue exceeding $30,493,780 trx (about $4.57 million). the average daily number of creations in august was as high as 3,709, especially on august 21, when the number of projects created in a single day reached 7,531.

in the web2 era, the strongest creativity always comes from the community. from tieba to reddit, from youtube to tiktok, the most cutting-edge pop culture is always born in these most lively communities. in the web3 era, the existence of virtual assets has changed, but the relationship between people has not changed. the community is still a powerful engine for creating explosive points.

therefore, compared with other virtual assets, the biggest advantage of meme coins is the community's ability to continuously create growth myths. the unlimited creativity of users, multiplied by the unlimited scalability of meme culture, ultimately brings unlimited possibilities to the track.

02 possibility and certainty

musk used the myth of dogecoin's rise to show the world the possibility of memecion, but also its uncertainty - a sentence can make it soar 130 times, and a sentence can also make it plummet 40%.

apart from musk, meme coins also have many risk factors. the supply of meme coins is too abundant, and some coins even have no upper limit. take dogecoin as an example. its current circulation has exceeded 140 billion, which is more than 5,000 times that of bitcoin, which has caused its unit price to be less than $0.1.

in addition, without the intervention of the platform, the risk of insider trading and even the direct collapse of the platform looms over the heads of traders. for example, in july 2023, the bald coin experienced a thousand-fold surge, but when it reached its historical highest price, baldbasebald withdrew nearly $20 million worth of eth from the bald fund pool, which seriously affected the liquidity of bald and caused the price to plummet by 80%. at the same time, baldbasebald made a profit of about $5.9 million.

the problem is that the benefits of meme development have not been shared by most users. on pump.fun, 20% of traders made a profit, while the remaining 80% suffered losses.

memecoin is of course decentralized, but a set of fair and responsible platform rules is always crucial for all community-based products.

and this is exactly the design concept of sunpump.

image: sunpump website

sunpump's fairness starts from the source of meme coins - the coin issuance stage. sunpump has greatly reduced the threshold for coin issuance. at sunpump, issuing coins is as simple as sending an x. you only need to enter the coin name, symbol, upload a picture, and pay a small fee to quickly create your own meme coin.

in the most important pricing link, sunpump has made some interventions and adopted the bonding curve pricing model to dynamically adjust the price according to the token supply chain. this reduces the bubble risk caused by "excessive issuance" from the root of coin issuance.

in addition, sunpump has created a liquidity and destruction mechanism. when a meme coin reaches a certain market value, the corresponding trx liquidity will be deposited into sunswap v2 and destroyed. according to the latest data, sun has destroyed a total of 340,477,321.63 pieces, equivalent to approximately us$9,209,725, accounting for 3.42% of the total circulation.

in addition, sunpump will repurchase assets like a listed company repurchases stocks. all 100% of the protocol revenue earned by sunpump will be repurchased and destroyed in a decentralized manner to return the value to the community. this reflects sunpump's operating philosophy: for meme coins, users are the real "shareholders", and the priority of rewarding them is higher than the priority of earning platform revenue.

finally, the first person responsible for the risk is always the user himself. sunpump provides a lot of information resources to help users understand the risks of memecoin.

it can be seen that certainty is a very important part of sunpump's operating mechanism. this certainty does not eliminate risks. after all, risk itself is the b side of opportunity and it cannot be completely eliminated. but market transactions should be fair and transparent, and if risks are based on fairness and transparency, then such risks are benign or neutral.

03 only with a backer can you be stable

cryptocurrencies can be unbacked, but trading platforms still need one.

in addition to the design concept, sunpump's most fundamental competitive advantage lies in the tron ecosystem behind it. using a physical business metaphor, it is like a store with the most powerful investors and located in the best shopping mall in the city.

the first thing it brings is traffic. according to tron scan data, there are currently more than 250 million accounts and 2.66 million daily active users in the tron ecosystem. this provides a source of traffic for meme coins on sunpump. the value basis of meme coins and even all crypto assets is consensus. and the basis of consensus is the number of users. as many blockchain networks gradually become "ghost domains", tron's huge user base is extremely valuable.

figure: partial data of tron public chain

at the same time, the usdt issuance on the tron chain exceeded 61.8 billion us dollars, accounting for 53% of the total issuance of tether. this stable currency of more than 60 billion is, to some extent, the "margin" of sunpump, which inputs a large amount of liquidity into the meme ecosystem.

sunpump will also provide direct financial support, such as gas fee reduction activities and a $10 million meme ecosystem incentive plan.

of course, the founder behind tron is also a strong supporter of sunpump. in the field of cryptocurrency, sun yuchen’s own traffic is needless to say. he also attaches great importance to the value of meme coins in the tron community.

in addition, sunpump has also joined forces with other trading platforms to further increase the liquidity of meme coins. on august 14, sunpump has reached an ecological strategic cooperation with the veteran cryptocurrency exchange poloniex.

of course, if you want to be listed on poloniex, the standards are also strict. the meme coins launched by creators on sunpump must maintain a daily trading volume of 1 million us dollars for 3 consecutive days before they can be listed on poloniex through the fast track within 72 hours. if the trading volume of the meme coin reaches 10 million us dollars for three consecutive days, the project can be listed on huobi htx. this model provides an "upward channel" for meme coins under the sunpump ecosystem, providing greater liquidity possibilities for high-quality meme coins.

decentralization is the core value of cryptocurrency. starting with dogecoin, a large number of popular meme coins have been unable to escape the fate of rapid rise and then continued downturn. the reasons behind this are nothing more than too much issuance, opaque rules, insufficient liquidity, etc. solving these problems is exactly sunpump's mission.

from the measures of reducing fees and repurchasing revenue, we can see that short-term revenue is not the most important goal of sunpump. how to promote the entire ecosystem to develop in a larger, healthier and more mature direction is the ultimate mission of this platform.

(this article is written based on public information and is intended to reflect market changes. it does not constitute investment advice.)

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