I wonder if you guys still remember that at the end of February, Pump(.)fun quietly launched an AMM when the relationship with Raydium was no longer happy 🤣
Before, Pumpfun still relied on Raydium to provide liquidity for meme tokens on Solana
But the project seemed to want to be "independent", when testing a separate AMM, wanting to gain control of liquidity.
But checking onchain at that time, Raydium probably didn't need Pumpfun because only 1.4% of tokens from Pumpfun were transferred to Raydium, of which less than 100 tokens had a capitalization of over 1 million USD.
In general, the volume from Pumpfun accounts for 20-30% of the total volume on Raydium.
Today, Raydium launched LaunchLab - a token issuance platform with many similarities to what Pumpfun is developing:
Flexible pricing mechanism, not tied to a single model.
Supports a wide range of tokens, not just limited to SOL.
Deep integration with the Raydium ecosystem, allowing token creators to benefit from long-term transaction fees.
This information immediately attracted attention, causing the price of $RAY to increase by more than 20% after its launch.
Is this a direct response to Pumpfun or is Raydium simply expanding its influence in the hotly developing meme token market? Either way, users are the ones most directly affected by this competition
PROS AND CONS
PROS
More choices for users: If Pumpfun succeeds with its own AMM, users will have a new liquidity creation platform instead of relying solely on Raydium.
More vibrant market: Competition can spur innovation, bringing more attractive features to traders and token creators.
Raydium retains users: With LaunchLab, Raydium can still protect its ecosystem, especially for those who are familiar with the platform.
Disadvantages:
Liquidity fragmentation: If both platforms coexist without cooperation, liquidity on Solana can be fragmented, affecting the trading experience.
Fierce competition: If Raydium feels threatened, they can introduce policies that are unfavorable to Pumpfun or find ways to slow down the development of this platform (do not let the two companies fight each other and make users suffer the consequences :))
Users are "overloaded": When there are too many options, not everyone knows which platform is really optimal for trading and issuing tokens.
AMM for meme tokens is becoming an attractive market segment, and it would not be surprising if in the coming time, both platforms continuously launch new features, even with other competitors jumping into the race.
And I see that Mr. BNB Fourmeme really wants to rise up, even though he has just been blacked, he has been attacked all the time since his debut.
Now who will dominate, let's wait for the answer in the future, whoever is strong will live handsomely, whoever is weak will go underground. We brothers probably use both =))) wherever is suitable, we will go, right everyone?