Memecoins without getting rugged 7 minFREE
How a memecoin is born
Launchpads, bonding curves, liquidity pools and the first buyers.
Most memecoins today are created in minutes on a launchpad, without any team, product or audit. Understanding the launch mechanics explains most of what happens next.
The bonding curve
On launchpads such as pump.fun on Solana, a new token is first sold along a bonding curve: a formula where every purchase raises the price for the next buyer. Early buyers pay almost nothing; later buyers pay much more for the same amount of tokens.
When enough money has come in, the curve “completes” and the token migrates to a regular decentralised exchange: the collected funds and part of the supply become a liquidity pool, and the price is then set by trading in that pool.
Who buys first
- The creator, who can buy in the very first block.
- Snipers: bots that buy within seconds of the launch, before any human sees it.
- Bundles: one person buying from dozens of fresh wallets at once, so the supply looks spread out.
By the time a coin appears on social media, the first buyers often hold a large share bought at a fraction of the current price. Every later buyer is, mechanically, their exit.
Most launched tokens never complete their curve, and most of those that do fall far below their peak within days. Treat any memecoin as a high-risk bet, not an investment.
Check what you’ve learned
Two questions from this lesson. Get both right to mark it as done.