Author: Zz
In August 2025, according to Defillama data, Pump.fun earned over $8.58 million in just one week, ranking first on the Solana platform with a market share of 67.9%. However, according to Solidus Labs (The 2025 Rug Pull Report), despite the large scale of the Meme coin market, its ecosystem exhibits high risk and high failure rates, with 98.6% of projects ultimately going to zero.
For the vast majority of Meme creators, they create viral content but cannot share the massive economic benefits it brings, turning the market into a 'graveyard of creators' value.' Bags has grasped the key contradiction and started from there.
Mechanism disassembly and innovation points
Bags provides a new model for the issuance and trading of Meme coins by improving the revenue method for Meme creators, the social experience for users, and the transaction entry process.
Automatic income distribution mechanism:
In traditional models, Meme creators find it difficult to benefit from viral dissemination. Bags has launched the innovative income distribution mechanism 'Income Assignment feature.' This feature allows the original author's wallet to be preset as the beneficiary when the community issues tokens, automatically allocating transaction fees to the creators.
Taking the classic meme 'Nyan Cat' as an example, the $NYAN token sets the wallet of the meme's original creator, Chris Torres, as the beneficiary address, allowing continuous earnings from transaction sharing without his involvement. This 'passive income' model breaks through Pump.fun's requirement for creators to personally issue tokens, enabling creators uninterested in cryptocurrency to still earn actual income.
However, this unauthorized 'forced dividend' poses legal compliance risks. In some jurisdictions, this mechanism may be classified by regulators as a type of securities issuance or investment contract. Additionally, it may trigger legal disputes regarding intellectual property or portrait rights.
Integrated Social:
Bags seamlessly integrates group chats with trading, allowing users to see friends' purchasing activities in real-time, and community discussions instantly convert into trading volume. Compared to the singularly functional Pump.fun, this 'chat while buying' model provides stronger user engagement and virality.
However, closed group chats can easily create information silos, making it difficult for rational or warning voices from the outside to enter. This amplifies FOMO emotions and exacerbates speculative bubbles.
Lowering the threshold:
The platform supports various payment methods such as Apple Pay and Coinbase, significantly lowering the participation threshold. It only takes a few minutes from discovering interesting memes to completing transactions, far surpassing traditional DeFi applications in convenience.
The explosion of Meme coins requires external traffic, and Bags' low-threshold strategy precisely meets this demand. However, a large influx of inexperienced newcomers without risk awareness can easily suffer losses during volatility and may lead to excessive speculation in the ecosystem.
Bags has built a more complete Meme coin ecosystem through these three points, but it still needs to cautiously balance compliance and speculative risk control.
Market Competition Landscape
In the competition among Solana issuance platforms, Bags targets the weakness of Pump.fun: lack of mobile presence, insufficient social native features, and low creator friendliness.
Pump.fun holds a 67.9% market share, generating significant revenue, but faces high risks and failure rates for users; it lacks a mobile application and has been involved in internal controversies and incidents where it was blocked by the UK's Financial Conduct Authority (FCA).
According to Defillama data, Bags has an 11.6% market share, with a 7-day revenue of $3.95 million, surpassing Letsbonk, whose mobile application and social features significantly enhance user experience.
Letsbonk, backed by Raydium and BONK, once held a 55.2% trading share but overall lacks mobile applications and income distribution mechanisms.
The core of competition lies in how Bags targets the weaknesses of Pump.fun. While Pump.fun occupies a huge market share, its dominance comes with fatal flaws for creators. Additionally, Pump.fun lacks a mobile application, which is precisely Bags' strategic focus—attracting users who value community and fair economics through a mobile-first, socially native, and creator-friendly model.
Marketing case: Bags acquired Dogwifhat for $800,000
In early 2025, according to Decrypt, Finn acquired Dogwifhat (a knitted hat worn by a dog) for 6.8 BTC (approximately $793,000). The funds came from trading fees of the platform token 'BuytheHat' (BTH) and partly from personal funds.
After acquiring the hat, Finn changed the official Bags logo to a hat-wearing version and immediately launched his plans: offering a $250,000 reward to the first Meme coin on the Bags platform to surpass a market value of 10 million, igniting community speculation and creative enthusiasm.
As expected, within 10 hours after the auction, the market value of BTH skyrocketed from $1.62 million to $6.37 million, with an increase of nearly 4 times validating the power of this method.
Through a combination of 'hot events + financial incentives,' Bags attempts to create a growth flywheel: marketing attracts traffic, traffic generates transactions, transactions feed back into creators, and creators attract more users.
This approach essentially encapsulates Bags' business model. The $NYAN token revenue flows to the creator of the rainbow cat, while the Trollface creator also receives compensation through a similar mechanism. Even if these creators are hesitant about cryptocurrency, they cannot refuse the passive income in real money.
Risks and challenges
The key issue for Bags is that front-end innovation is built on a backend lacking transparency. As a platform handling user funds, Bags lacks the most basic technical transparency—no white paper, technical documents, or roadmap, and its smart contracts have not been audited by third parties, leaving users unable to verify the platform's security.
This lack of transparency may be a deliberate choice. In the meme coin space, where 'speed is life,' audits and documentation can slow down iteration. Bags has opted for a high-risk strategy of 'seize the market first, then perfect compliance,' which can rapidly capture market share but places users at risk.
It is also worth noting that Bags' operating model is partially similar to Pump.fun, which has seen 98.6% of its projects identified as fraud. This similarity raises serious concerns about the project quality on the Bags platform. Meanwhile, the entire project value highly depends on founder Finn's personal involvement; if Finn leaves or encounters issues, the ecosystem may collapse instantly.
Despite receiving praise for its interface design, the actual user experience is fraught with issues. Many users report severe performance lags and input delays, which are fatal flaws for a platform emphasizing transaction speed. Additionally, some users claim they are unable to withdraw funds, and the groups are filled with spam and suspicious content. These issues not only affect the transaction experience but also expose potential hazards in content management and fund security, turning the platform into a breeding ground for malicious activities.
In conclusion: Future prospects
The future of Bags may have three possibilities:
Optimistic scenario: By solving technical delays and releasing audit reports, it becomes the preferred platform for Web2 creators to enter Web3, establishing a community-based moat.
Pessimistic scenario: Security vulnerabilities or regulatory crackdowns could destroy the platform's reputation, leading to catastrophic losses for users.
Middle scenario: Open up a sustainable niche market among specific user groups that value social interaction and narrative.
The future of Bags may depend on whether it can find a balance between innovative features that attract users and the basic security that protects user assets.
(This article is for reference only and does not constitute investment advice)
