Understanding Pump.fun: The Lottery Platform That Could Change Your Fortune

Let me sum it up in one sentence: Pump.fun is a game-changer.

Take my own experience with Morty, for example. I invested 0.1 SOL and eventually cashed out 5000 USDT. At its peak, though, it was worth 45,000 USDT.

So, does that mean my theoretical reward was turning 0.1 SOL into 4.5 million USDT?
Not exactly. Because I was the first buyer, my actual cost was extremely low—just gas fees and a small transaction fee, around 1 USDT. So, the true multiplier was about 45,000x.

Was it just because I bought early? Not really. This project had been around for a month with no buyers until I jumped in.

To truly understand Pump.fun, think of it as a lottery platform.

In the past, crypto trading was akin to stock trading. Pump.fun changes the game, making it more like a lottery. Back in the day, jokes about "10 USDT warriors" were just memes because gas fees alone were too high. But on Solana, buying into Pump.fun’s projects can genuinely turn 10 USDT into 100,000 USDT.

Every day, Pump.fun releases thousands of tokens. Among them, there are always a few that hit multi-million-dollar market caps. If that doesn’t scream lottery, what does?

But why do most people lose money on Pump.fun?
It’s because they don’t fully grasp how lotteries work.

The mechanics of Pump.fun ensure a floor value for projects listed on the platform, which currently hovers around $6,000 to $7,000. If you buy low, your total investment remains manageable. For instance, if you invest 9000 USDT and the project’s minimum sellable value is $7,000, your real cost for a 0.1 SOL investment is just 0.03 SOL. If you buy at $7,000, like I did, your cost drops to just 1 USDT.

Of course, as long as you win, whether you buy at $7,000 or $900 doesn’t make much difference.

How Can You Increase Your Chances of Winning?

This is where the concept of "information flow = capital flow" comes in.

In the meme market, with its ultra-low market caps, even a small amount of exposure can lead to explosive growth. For instance, on the day ChillGuy’s "Moonshot" skyrocketed 10x, I dug through the developer’s other projects—there were only 180 of them. I bought all of them, even the weird ones.

One of the projects was literally a pile of poop—it had an image of poop as its logo. But I bought it too.

Now, I enjoy the daily thrill of "lottery draws."

The global lottery market is estimated to be worth over $100 billion, though the exact figure doesn’t matter. What does matter is this: If people realize they can make thousands or even millions of times their initial investment on Pump.fun, they’ll flood in.

Maybe another platform will eventually take the spotlight, but the lottery market is here to stay.

Only memes have the power to change your fate. Can you really expect a 10 BTC investment to revolutionize your predictable life?

Meme projects have to be fun to succeed. This could lead to them evolving into entertainment platforms, e-commerce hubs, or even live-streaming platforms, though the latter has faced some hiccups recently. These possibilities remain on the horizon.

For now, let’s not predict the future—just keep the potential in mind.