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Cryptocurrency News Articles
Pot2Pump: A Revolutionary Token Launch Mechanism For Meme Tokens On Berachain
Sep 15, 2024 at 11:31 pm
Meme tokens are one of the hottest topics right now. The meme token launch market alone is estimated to have a market cap of around $500 million.
Meme tokens are gaining immense popularity, with the meme token launch market alone estimated to be around $500 million. Berachain, a chain specifically designed for meme tokens, has attracted a cult following. Despite being in its pre-inception phase, a multitude of new and unique memes continue to emerge across formats.
With the rise in popularity, meme launchpads have become a key space for innovation. Among these platforms, Pump.Fun has garnered attention with its use of a bonding curve model, transitioning to a DEX when a minimum market cap is reached.
Through its Bonding Curve model, Pump.fun has launched over 2 million tokens to date, generating an impressive $105 million in revenue. The mechanism utilizes a two-phase launch system that gradually increases token prices through a bonding curve before moving to a DEX. This approach helps counter a significant price slump post TGE. However, like any other launchpad, Pump.fun has its own set of challenges. Here are a few notable drawbacks:
The challenges mentioned above contribute to Pump.Fun having a launch success rate of only 1.5%, with 98.5% of launches failing, resulting in significant user losses. Forks of Pump.Fun perform even worse, with a success rate as low as 0.1%. Additionally, the model does not integrate well with Berachain’s Proof of Liquidity (PoL), leaving users unable to mine BGT or benefit from protocol incentives, making it a dull experience for users.
Filling The Void With An Innovative Launch Mechanism On Berachain
The shortcomings of Pump.fun’s launch mechanism are one of the key reasons why the builders of Honeypot Finance are revolutionizing token launches for new projects through a more enhanced and cost-efficient mechanism, i.e. FTO (Fair Token Offering).
FTO does everything that Pump.fun does, but it does a lot more, and in an efficient manner. Here’s what makes FTO the perfect model for launching meme tokens on Berachain:
From FTO to Pot2Pump: Continuous Innovation in Meme Launches
While the FTO model fits perfectly into Berachain’s PoL, it wasn’t entirely suited for meme tokens, which are risky and often lack utility. Allocating 50% of LP to the token deployer is not ideal for meme tokens.
Realizing the need for a more efficient model for meme token launches, innovators at Honeypot Finance have adjusted this incentive to be much higher than Pump.Fun and its forks, offering a more fair and exciting launch experience. That’s how Pot2Pump came into being, as a successful and advanced iteration of FTO.
Pot2Pump combines all the advantages of the FTO model, with specific adjustments for meme tokens. Here are the key features of the Pot2Pump model:
The combination of low-risk participation, real liquidity, and a refund mechanism makes Pot2Pump a far more successful launch model than Pump.Fun. If the market cap reaches $69k, Pot2Pump ensures that all early participants triple their price, resulting in huge profits compared to Pump.Fun, where 70% of participants end up with losses. This gives Pot2Pump an upper hand over Pump.fun when it comes to the launch of meme tokens.
Comparing the Models: Pot2Pump vs. Pump.Fun
Honeypot Finance’s innovation journey is just beginning. In exciting news, Honeypot Finance is also incubating BeraScout with BeraBoyz, a new SocialFi meme launchpad. More fun and innovative features are coming to revolutionize the space!
Join the Honeypot Finance community today and be part of the next wave of DeFi innovation
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
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