What are token launch platforms?
Pump.fun and Moonshot are popular Web3 token launch platforms. Take Pump.fun as an example: it’s a Solana-based platform for issuing and trading meme coins, featuring fair launches. By simplifying the token creation process, it lowers the technical barrier to entry, enabling anyone to issue a token for less than $2. This has led to a surge in newly listed trading pairs on decentralized exchanges each day. Since its launch in January 2024, Pump.fun has rapidly gained popularity in the community and has played a key role in fueling, or even reshaping, the meme coin trend. Pump.fun introduced a new token launch paradigm, paving the way for similar platforms like Moonshot and Four.meme. Gate Alpha plans to support more popular token launch platforms in the future.
What are internal and external markets?
Using Pump.fun as an example, trading takes place in two phases: the internal market and the external market. The internal market refers to the initial phase of token trading, where tokens are traded via a specific mechanism. On Pump.fun, this phase involves an internal liquidity pool where prices are determined by a Bonding Curve that adjusts automatically based on token supply. The external market refers to the public trading market where tokens are traded after migrating from the internal market to a decentralized exchange. On Pump.fun, once internal liquidity reaches 85 SOL (about $69,000), the system automatically transfers the raised funds and minted tokens to Raydium to create a liquidity pool (LP), completing the listing. In the external market, tokens enter the broader DeFi ecosystem, where prices are driven by market supply and demand, typically via an Automated Market Maker (AMM) mechanism.
What is liquidity migration?
Liquidity migration refers to the process where tokens on platforms like Pump.fun move from the internal market (Bonding Curve phase) to a decentralized exchange such as Raydium after initial issuance, thereby creating a public trading market. Migration typically takes between a few minutes to several hours, depending on network congestion. Tokens cannot be traded until the migration is complete.
How to trade Pump.fun tokens ?
Trading Pump.fun tokens is no different from trading Alpha tokens. Please refer to the Alpha FAQ for detailed instructions.
