Pump.fun Rolls Out Pump Fund to Support Long-Term Builders

Source: CryptoTale Original Title: Pump.fun Rolls Out Pump Fund to Support Long-Term Builders Original Link: Pump.fun launched Pump Fund, introducing a $3 million investment arm tied to a public hackathon. The Solana-based memecoin platform said the initiative will fund 12 startups at $250,000 each. The move involves token launches, public development, founder mentorship, and market-driven funding during a 30-day program.

Pump Fund Expansion Beyond Memecoin Launches

Pump.fun said Pump Fund represents its first formal investment structure aimed at early-stage startups. Notably, the company said the fund is not restricted to crypto-native ideas or sectors. Instead, it plans to back teams across different industries, stages, and traction levels.

The fund launches with the Build in Public, or BiP, Hackathon, which runs for 30 days. During this period, selected teams must ship products while sharing progress openly. Pump.fun said transparency and execution speed will guide selection.

Each selected project receives $250,000 at a $10 million valuation, according to the announcement. However, teams must retain at least 10% of their token supply. They must also launch a token and comply with platform and jurisdictional rules.

Alongside capital, Pump.fun founders will provide direct mentorship to funded teams. The company said it will assess early product delivery, community engagement, and visible demand. However, it emphasized long-term viability over short-term traction.

Tokenized Funding and Market Activity

Pump.fun framed the hackathon as a move from traditional venture funding models. Instead of private pitches, projects raise capital through token launches. Users decide which projects gain momentum by buying tokens in open markets.

Participants must post frequent updates, form public communities, and build visibly on social platforms. Streaming development on Pump.fun is encouraged by the company. This structure allows users to act as early backers through liquidity.

Pump.fun said tokenization enables instant capital formation without venture gatekeepers. However, funding outcomes depend on market response rather than internal committees. As a result, demand becomes measurable in real time.

Co-founder Alon Cohen said that interest in strong founders remains high across market cycles. He added that users consistently support early ideas when liquidity allows fast participation. According to Cohen, this dynamic has persisted for several years.

Notably, Pump.fun said the model places financial judgment with users instead of panels. Projects succeed based on organic demand rather than polished presentations. Selection focuses on progress, adoption, and sustainability.

Platform Activity Trends Frame the Timing

The launch comes amid a slowdown in Pump.fun’s trading activity, according to Token Terminal data. Monthly trading volume peaked at $11.75 billion in January 2025. By December, volume had declined to $2.43 billion.

During the same period, meme coin markets showed signs of short-term rotation. Trading volume jumped to $5.62 billion while total market capitalization fell 6%. However, volumes later declined again, suggesting temporary profit-taking.

Pump.fun has introduced several ecosystem initiatives over the past year. These include creator grants, liquidity support programs, and platform changes aimed at reducing rug risks. Pump Fund builds on these prior efforts.

The company said the fund aligns with longer-term ecosystem support rather than single-launch outcomes. Historically, many tokens struggled after launch despite early attention. Pump.fun said the new structure seeks to extend project lifecycles.

However, industry responses remain mixed. Supporters view the fund as a structured path for builders. Critics question whether market-led funding consistently favors durable products during volatile conditions.

Pump.fun said Pump Fund remains open to projects across all sectors. Teams must ship, communicate openly, and meet token requirements. The first cohort will determine how the model performs in practice.

The launch of Pump Fund places capital, transparency, and market demand at the center of Pump.fun’s next phase. The initiative ties funding, mentorship, and public development into one structure. The first hackathon cohort will test whether this model sustains projects beyond initial token launches.