Who Will Dominate Solana’s On-Chain Casino? An Analysis of the Evolution and Ecological Game of Meme Token Launchpads

Comparison of token launch platforms on Solana, translated by DeepTech Flow (original image from @samoyedccribes and SIGNUM CAPITAL)

Token launch platforms have become a mature area in the crypto ecosystem, offering projects a structured path to raise funds and initiate liquidity. Before the rapid rise of Pump.fun, this space was dominated by protocols more suited to Initial Decentralized Exchange Offerings (IDOs). Protocols like CoinList, PinkSale Finance, and Fjord Foundry were the go-to options for projects looking to launch on blockchains such as Ethereum and Binance Smart Chain (BSC). These launchpads typically served more established protocols with dedicated builders and operated in a more selective environment, where investors often needed to be whitelisted to participate in specific fundraising activities. These barriers made them less accessible to smaller protocols and less formal projects, such as meme coins or experimental tokens.

The emergence of Pump.fun has been hailed by some as the kingmaker of Solana, as it played a crucial role in propelling the chain’s dominance. Launched on Solana, Pump.fun leveraged the blockchain’s low cost and high-speed transactions to revolutionize token issuance. Unlike its predecessors, Pump.fun introduced a standardized mechanism that burned liquidity pool (LP) tokens at launch, ensuring that liquidity could not be drained—this feature provided additional trust for retail participants, although the platform was not entirely immune to manipulation by insiders.

Number of tokens created since the inception of Pump.fun

Pump.fun’s true influence lies in its decentralized approach. It allows anyone, not just established protocols, to raise funds and initiate liquidity in a fair manner. To date, over 10 million tokens have been launched on Pump.fun. This accessibility has made Pump.fun the breeding ground for Solana’s meme coin frenzy, leading Solana to be dubbed the preferred “on-chain casino.” Other chains have tried to claim this title, but none have succeeded. Pump.fun’s model was pioneering, allowing new token issuances to spread on an unprecedented scale.

However, is this a net positive or negative for the crypto space? On one hand, Pump.fun lowered the barriers to entry, promoting creativity and experimentation. On the other hand, it also opened the floodgates for low-quality projects and large-scale liquidity extraction events. Some argue that this is harmful to the long-term health of the ecosystem. Only time will tell, as the market will correct itself when the time is right.

Number of tokens created since the inception of Makenow.meme

Following the success of Pump.fun, Makenow.meme emerged as an early competitor, aiming to take this concept further by integrating directly with platforms like X. The idea was to allow users to create tokens by tagging Makenow.meme’s X account directly on X, making token issuance a seamless and user-friendly experience. In theory, this looked like a promising decentralized application for the masses, combining social media with crypto innovation. However, despite its potential advantages, Makenow.meme struggled to find product-market fit (PMF). The platform’s adoption was lackluster, leading to a rapid decline in user activity after launch. Despite its novel concept, it lacked the execution and incentives needed to drive mainstream adoption.

Pump.fun’s dominance did not last long. A pivotal moment came when Pump.fun decided to migrate its “graduated” tokens (tokens that reached a certain market cap threshold) from Raydium to its own Pumpswap decentralized exchange (DEX). This move sparked a wave of competition. Raydium responded by launching its own token launchpad, LaunchLab. Additionally, Believe introduced a product similar to Makenow.meme, allowing users to issue tokens on X, while Bonk also launched its own launchpad, based on Raydium’s LaunchLab tech stack. Most recently, Boop entered the market under the leadership of Dingaling (founder of Pancakeswap, LooksRare, etc.).

Boop stands out for its innovative approach and “fun” Ponzi economics. Boop introduced a fee-sharing mechanism, addressing a major pain point of Pump.fun: the lack of incentives for token creators and early adopters. Boop also adopted an aggressive user onboarding strategy to attract users. Notably, some core DeFi users received $BOOP airdrops, but with a catch. They had to issue tokens, market them, and encourage others to buy in order to claim the airdropped tokens. Additionally, Boop offers fee-sharing, airdrops, and other incentives for token deployers, $BOOP holders, and holders of recently “graduated” tokens. Although still in its early stages, Boop’s dynamic incentive structure and willingness to rethink the possibilities of launchpads may cultivate a loyal and engaged user base over time.

Undoubtedly, the field of token launchpads on Solana is becoming increasingly saturated. The ability to fork protocols is a fundamental characteristic of blockchain technology and is not inherently negative. However, the proliferation of nearly identical products can stifle innovation, as they offer little differentiation, leading to a crowded market with fragmented user attention and liquidity.

Instead, the crypto space should encourage projects like Boop, led by Dingaling, to iterate on the design of existing products. By introducing novel incentive structures and rethinking user onboarding, Boop has demonstrated that there is still room for innovation in this space. As the market evolves, the key to success lies in striking a balance between accessibility and sustainability, ensuring that token launchpads not only empower creators but also promote a healthier and more resilient crypto ecosystem.