Author: Zz
In August 2025, according to Defillama data, Pump.fun generated over $8.58 million in just one week, ranking first on the Solana platform with a 67.9% market share. However, according to the Solidus Labs (The 2025 Rug Pull Report), despite the massive scale of the Meme coin market, its ecosystem exhibits high risk and high failure rates, with 98.6% of projects eventually going to zero.
For the vast majority of Meme creators, they generate viral content but cannot share in the substantial economic benefits it brings, rendering the market a 'graveyard of creators' value.' Bags seizes the key contradiction and addresses it.
Mechanism breakdown and innovation points
Bags offers a new model for the issuance and trading of Meme coins by improving the revenue methods for Meme creators, enhancing the user social experience, and streamlining the entry transaction process.
Automatic income distribution mechanism:
Under traditional models, Meme creators struggle to benefit from viral distribution. Bags introduces an innovative income distribution mechanism called the 'Income Assignment feature.' This feature allows the community to preset the original creator's wallet as the beneficiary during token issuance, automatically distributing transaction fees to creators.
Taking the classic Meme 'Nyan Cat' as an example, the $NYAN token sets the original creator Chris Torres' wallet as the revenue address, allowing him to continuously earn transaction shares without his involvement. This 'passive benefit' model breaks through Pump.fun's requirement for creators to personally issue coins, enabling creators who are disinterested in cryptocurrency to also obtain actual income.
However, this unsolicited 'forced dividend' poses legal compliance risks. In some jurisdictions, this mechanism may be defined by regulators as a form of securities issuance or investment contract. Additionally, it could also trigger legal disputes regarding intellectual property or portrait rights.
Integrated social features:
Bags seamlessly integrates group chats with transactions, allowing users to see their friends' purchasing activities in real-time, transforming community discussions into trading volume instantly. Compared to the single-function Pump.fun, this 'chat-and-buy' model offers 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 barriers:
The platform supports multiple payment methods such as Apple Pay and Coinbase, significantly lowering the entry barrier. It only takes a few minutes to discover interesting Memes and complete transactions, far surpassing traditional DeFi applications in convenience.
The explosion of Meme coins requires external traffic, and Bags' low barrier strategy precisely meets this need. However, a large influx of inexperienced users lacking risk awareness may easily suffer losses amid volatility and could lead to excessive speculation in the ecosystem.
Bags has built a more complete Meme coin ecosystem through these three points, but still needs to carefully balance compliance and speculative risk control.
Market competition landscape
In the competition of Solana issuance platforms, Bags targets Pump.fun's vulnerabilities: absence of mobile applications, insufficient social native features, and low creator friendliness.
Pump.fun holds a 67.9% market share and generates substantial revenue, but users face high risks and high failure rates; it lacks mobile applications and has been involved in internal disputes and incidents of being blocked by the UK's Financial Conduct Authority (FCA).
According to Defillama data, Bags holds an 11.6% market share with $3.95 million in revenue over seven days, surpassing Letsbonk, whose mobile applications and social features significantly enhance user experience.
Letsbonk, backed by Raydium and BONK, once held 55.2% of the trading share but overall lacked mobile applications and revenue distribution mechanisms.
The core of the competition lies in how Bags targets the weaknesses of Pump.fun. Although Pump.fun occupies a large market share, its dominance comes with fatal flaws for creators. Additionally, Pump.fun lacks a mobile application, which is precisely the strategic focus of Bags—attracting users who value community and fair economy through a mobile-first, socially native, and creator-friendly model.
Marketing case: Bags purchased Dogwifhat for $800,000
In early 2025, according to Decrypt reports, Finn purchased Dogwifhat (a knitted hat worn by a dog) for 6.8 BTC (approximately $793,000). The funds came from the platform token 'BuytheHat' (BTH) transaction fees, partially from personal funds.
After buying the hat, Finn replaces the Bags official logo with a hat-wearing version and immediately launches his plan: a $250,000 reward for 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, a nearly fourfold increase validating the power of this approach.
Through a combination of 'hot events + financial incentives,' Bags aims to create a growth flywheel: marketing attracts traffic, traffic generates transactions, transactions benefit creators, and creators attract more users.
This approach essentially encapsulates Bags' business model. The $NYAN token revenue flows to the creator of Nyan Cat, while the creator of Trollface also earns 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 foundation of back-end opacity. As a platform handling user funds, Bags lacks the most basic level of technical transparency—there are no white papers, technical documents, or roadmaps, and its smart contracts have not been audited by third parties, leaving users unable to verify the platform's security.
This lack of transparency might be a deliberate choice. In the 'speed is life' realm of Meme coins, audits and documentation can slow down iteration speed. Bags has chosen a high-risk strategy of 'occupying the market first, then perfecting compliance,' which can quickly gain market share but places users at risk.
It is also worth noting that Bags' operating model is somewhat similar to Pump.fun, which has had 98.6% of its projects identified as fraudulent. This similarity raises serious doubts about the quality of projects on the Bags platform. Simultaneously, the entire project's value is highly dependent on founder Finn; if Finn leaves or encounters issues, the ecosystem could collapse instantly.
Despite the positive feedback on interface design, 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 cannot withdraw funds, and groups are filled with spam and suspicious content. These problems not only affect the trading experience but also expose potential risks in content management and fund security, making the platform a breeding ground for malicious activities.
In conclusion: Future outlook
The future of Bags may have three possibilities:
Optimistic scenario: Resolve technical delays, release audit reports, become the preferred platform for Web2 creators to enter Web3, and establish a community-based moat.
Pessimistic scenario: Security vulnerabilities or regulatory crackdowns could destroy the platform's reputation and lead to catastrophic losses for users.
Intermediate scenario: Developing a sustainable niche market among specific user groups that value social interaction and narrative.
The future of Bags may depend on its ability to find a balance between innovative features that attract users and the foundational security that protects user assets.
