Meme coin launchpad Pump.fun has announced the launch of Pump Fund, a new investment arm backing promising startups. This marks a significant expansion for the platform, moving beyond its initial focus on memecoin-related operations.
The Pump Fund will commence its operations with a $3 million hackathon. This initiative aims to identify and support emerging talent by funding 12 selected projects with $250,000 each. These projects will be valued at $10 million.
Investment Strategy and Mentorship
Pump.fun stated that the investment arm is designed to align with projects on a long-term basis. Notably, the fund's scope is not limited to crypto-related ventures; it will consider projects from any sector.
Selected projects will benefit from mentorship provided by the founders of Pump.fun, offering valuable guidance and expertise to help them grow and succeed.
Hackathon Details and Market-Driven Evaluation
The hackathon is scheduled to run for 30 days. During this period, participants will be tasked with creating a token, sharing regular updates on their project's progress, and allowing the market to determine the project's success.
Pump.fun explained that this tokenization model shifts the evaluation process from pleasing judges or venture capitalists to a market-driven assessment. Investors can support projects by betting on them in their early stages.
Market Demand and Project Funding
Alon Cohen, co-founder of Pump.fun, highlighted the consistent and high demand for skilled founders from both traders and long-term investors, irrespective of market conditions. He observed this trend across various crypto developments over the past three years.
Cohen noted that shortly after Pump.fun's launch, projects began issuing tokens because users showed a strong interest in investing in new ideas with the potential for success. This mechanism allows for rapid funding of promising ventures.
Platform Growth and Future Initiatives
The platform has experienced substantial growth, with its monthly trading volume reaching $11.75 billion in January 2025, just one year after its inception. This new investment initiative underscores Pump.fun's strategic plan to provide ongoing support for projects beyond their initial token launch.
Cohen also mentioned the potential for millions of individuals to become both users and investors in projects funded through the platform. The instant liquidity offered by Pump.fun facilitates quick project funding, which has contributed to the emergence of artificial intelligence projects within the crypto space.