What Most Investors Still Get Wrong About Pump.fun

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What Most Investors Still Get Wrong About Pump.fun

Pump.fun is usually described as a memecoin casino.

That may be missing the bigger idea.

What if every meme, creator, community and internet trend could have its own market?

That is the vision Noah, one of the founders behind pump.fun, laid out in our latest conversation.

In his view, pump.fun is not merely a token launcher.

It is trying to build a new type of social network.

One where users do not just watch trends develop.

They can trade them.

Creators do not just earn from ads.

They can earn from the markets forming around their content.

Let me break down the signal from our conversation and how we at LNMS see things.

Let’s gooo 🎢 Inside this breakdown:

• How to turn attention into a tradable market

• How creators can monetize beyond advertising

• Why memecoin activity has remained resilient

• Why traditional crypto investors may be missing the point

• How to better act on your vision

The Question Most People Get Wrong About Pump.fun

Most people ask:

“Do memecoins have any real value?”

A better question:

“Why do millions of people keep creating, trading and sharing them?”

Value is subjective.

People spend time on YouTube.

They post on Instagram.

They follow internet personalities.

They trade collectibles.

They form communities around ideas, jokes and cultural moments.

Pump.fun adds a financial layer to that behavior.

Signal #1: Attention Becomes The Asset

Financial markets have always priced stories.

A company tells investors where it is going.

Investors decide whether they believe it.

Price moves as expectations change.

Pump.fun compresses that process.

The asset can be created in seconds.

The narrative begins immediately.

The market forms around it.

If more people care, demand rises.

If attention disappears, the price falls.

That makes the platform highly reflexive.

Users are not merely observing the trend.

They help create it.

Tell one friend about Bitcoin and the impact on Bitcoin’s price is almost invisible.

Tell ten friends about a coin with a tiny market value and their participation can change the market directly.

That feedback loop makes the product engaging.

Signal #2: The Creator Economy Gets A New Business Model

Traditional platforms monetize attention through advertising.

The platform earns most of the revenue.

Creators receive a share.

Pump.fun takes a different approach.

According to Noah, a portion of trading fees is distributed to the person who launched the coin.

That means creators can earn when people trade the content or community they created.

Noah said pump.fun distributed roughly $400 million to creators over the previous year.

For comparison, Meta, the huge hyperscaler everybody talks about nowadays, did $3 billion.

Signal #3: Memecoin Trading May Be More Durable Than It Looks

The obvious criticism is that this activity disappears during a bear market.

So far, that has not happened completely.

Pump.fun has continued generating substantial daily revenue even as the broader crypto market weakened.

Noah’s explanation comes down to volatility.

Large assets need major capital flows to move.

Bitcoin does not easily rise tenfold.

A tiny coin can.

That gives traders the same emotional experience at a much smaller scale.

A move from a $3,000 market value to $15,000 feels enormous to the people involved.

That creates activity even when the broader market is flat.

Why Crypto Insiders May Be Missing The Point

Much of crypto still values complexity.

New chains. New consensus systems. New scaling architectures. New technical language.

Pump.fun offers something simpler:

· Create a coin.

· Share it.

· Trade it.

That simplicity can look unserious to people who associate complexity with value.

But consumers rarely care how complicated a product is.

They care whether it is useful, entertaining or profitable.

Noah’s criticism of the traditional crypto model is blunt.

Many venture backed projects create complicated narratives around tokens with little real demand.

Retail investors receive the tokens after insiders have already secured favorable allocations.

Pump.fun removes some of that structure.

Creators do not automatically receive a free allocation.

They have to buy the coin like everyone else.

That does not make the market safe.

But it can make the rules easier to understand.

Users know they are speculating.

There is less need to pretend otherwise.

Why Volatility is the Product and Business Idea We Have

At LNMS, what fascinates as most is the fact that volatility is the product itself and it works!

This was proven by Bitcoin, it was proven by Strategy, and it is now being proven by Pump.fun once again.

Why is this the case?