Signum Newsletter 46
Weekly alpha for your weekend reads
This edition of the newsletter analyses launchpads on Solana and how it has evolved from Pump.fun's revolutionary accessibility model that enabled massive token proliferation to a now increasingly saturated space with competitors like Makenow.meme, LaunchLab, and Boop emerging. While Pump.fun dramatically lowered barriers to entry for token creation, newer platforms like Boop are attempting to innovate with enhanced incentive structures and features to differentiate themselves in an increasingly crowded market. We'll also share some interesting articles, portfolio updates and market highlights.
1. Research
a) Came for the AI Tool, Waiting for the AI Network
• AI creative tools like ChatGPT, Kling AI, and Midjourney currently function as isolated single-player applications rather than networked platforms, limiting the potential for inspiration, sharing, and remixing that would make AI-generated content more accessible and collaborative.
• Despite this limitation, these tools are dramatically lowering the barriers to creative production, enabling users to produce higher-quality content more quickly and cheaply than ever before, though questions remain about how the growing AI backlash might affect tool adoption and whether AI will enhance or erode cultural output quality.
Came for the AI Tool, Waiting for the AI Network
Why are AI creative tools single-player, and will that change?
b) Beyond the Hype: Why Gen AI Is Banking’s Next True Platform Shift
• Generative AI represents the next major platform shift in banking, with the potential to reduce the cost of personalized relationship banking by 10,000x, transforming it from an expensive human-driven service to an AI-powered experience costing mere cents per customer.
• Most global banks are currently implementing AI primarily for internal productivity tools first (particularly in North America), with Chinese institutions notably building their own AI infrastructure, while the ultimate winners in this era will be those who leverage AI to create significant improvements in customer experience and relationship banking at a fraction of the cost.
#81 - Beyond the Hype: Why Gen AI Is Banking's Next True Platform Shift (Free to Read)
A pragmatic roadmap for leaders who care more about cost curves than clickbait-plus six yardsticks every board should use to frame their AI strategy.
c) Time Value of Internet Money: Understanding Pendle
• Pendle has innovated by bringing bond-like yield trading to cryptocurrency markets through a mechanism that separates yield rights (YT) from fixed rates (PT), allowing traders to either speculate on variable yields or lock in fixed returns in a uniquely crypto-native way.
• Unlike traditional finance where central banks set risk-free rates, crypto yields are mathematically derived (such as from Ethereum staking rates and gas fees), creating a new framework for time value of money in decentralized finance that has driven Pendle's TVL from $230 million to $6.7 billion in early 2024, largely fueled by speculative interest in point-based airdrop campaigns.
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2. Portfolio
a) Dria
• DNET is a compiler-driven software approach that aims to unify diverse processing units (CPUs, GPUs, NPUs) into a seamless inference fabric for deep learning, breaking vendor lock-in and democratizing AI compute by allowing developers to deploy to heterogeneous networks of devices without worrying about individual hardware complexities.
• The proposed architecture uses a graph-centric compiler design with multiple intermediate representations, taking in abstract model graphs and transforming them through data-flow analysis and optimization passes to efficiently distribute workloads across heterogeneous hardware networks, ultimately aiming to unlock unused silicon potential and reduce dependence on monolithic, vendor-locked accelerators.
DNET: Towards Heterogeneous Multiprocessing for Deep Learning - Dria
Optimize any AI model on any engine, across all hardware. Dria's topology-aware compiler and peer-to-peer runtime merge CPUs, GPUs, NPUs & chiplets into one fabric-maximising utilisation, cutting inference cost and ending vendor lock-in.
b) Iota
• Four Pillars and Memento Research covers Iota Rebase
• "IOTA Rebased," which involves adopting Sui's MOVE-based architecture to enhance its Layer 1 protocol with programmability, replacing its original DAG-based Tangle with an object-oriented model that enables parallel execution, higher throughput, and native smart contracts.
• This strategic pivot represents IOTA's evolution from a feeless IoT-focused network to a comprehensive smart contract platform supporting both MoveVM (L1) and EVM (L2), positioning it for real-world adoption through initiatives like tokenized assets, digital identity solutions, and partnerships with entities like Trade Worldwide Information Network and Realize for tokenized Treasury Bills.
IOTA's Bid for the Next DAG-Based Breakthrough
With its 'IOTA Rebased' initiative, IOTA is making bold moves to redefine itself as a next-gen DAG-based smart contract platform.
Moving into a New Era: IOTA
IOTA, a pioneering Layer 1 network since 2015, introduced innovations like the first Directed Acyclic Graph (DAG)-based Distributed Ledger Technology (DLT) and has evolved through major upgrades like Chrysalis and Stardust. With Stardust, IOTA launched EVM-compatible smart contracts, reaching $90M highs in TVL during 2024.
3. Token Launchpads (Solana) - Innovation or saturation?
A brief history of token launchpads
Token launchpads are an established vertical in the crypto ecosystem, providing a structured pathway for projects to raise funds and bootstrap liquidity. Before the meteoric rise of Pump.fun, the landscape was dominated by protocols more tailored to Initial DEX Offerings (IDOs). Protocols such as CoinList, PinkSale Finance, and Fjord Foundry were the go-to choices for projects looking to launch on various blockchains, such as Ethereum and Binance Smart Chain (BSC). These launchpads often catered to established protocols with dedicated builders and also featured a more selective environment where investors typically had to get whitelisted to participate in a particular raise. These barriers to entry made them less accessible for smaller protocols, as well as less formal projects such as meme coins or experimental tokens.
Why was Pump.fun so impactful?
Enter Pump.fun, which some might hail as Solana’s kingmaker for its role in driving the chain’s dominance. Launched on Solana, Pump.fun leveraged the blockchain’s low-cost and high-speed transactions to revolutionise token launches. Unlike its predecessors, Pump.fun introduced a standardised mechanism that burned liquidity pool (LP) tokens upon launch, ensuring that liquidity couldn’t be pulled - this feature provided added trust for retail participants, though the platform wasn’t immune to manipulation by certain insiders.
What made Pump.fun truly impactful was its decentralised approach. It allowed anyone, not just established protocols, to fundraise and bootstrap liquidity in a fair manner. To date, more than 10 million tokens have been launched on pump.fun. This accessibility turned Pump.fun into a breeding ground for Solana’s meme coin frenzy, which caused Solana to be dubbed as the go-to “on-chain casino”. Other chains have tried to take this title away from Solana, but none have prevailed. Pump.fun’s model was the first of its kind, enabling the proliferation of new token launches at an unprecedented scale.
However, was this a net positive or negative for the crypto space? On one hand, Pump.fun lowered the barriers to entry, fostering creativity and experimentation. On the other hand, it opened the floodgates to low-quality projects and mass liquidity extraction events. Some argue this is detrimental to the ecosystem’s long-term health. Time will tell, as the market corrects itself in due course.
Makenow.meme - the earliest iteration
Following Pump.fun’s success, Makenow.meme emerged as an early competitor, aiming to take the concept further by integrating directly with platforms like X. The idea was to allow users to create tokens directly from X by tagging Makenow.meme’s X handle, making token launches a seamless, consumer-friendly experience. On paper, this sounded like a promising decentralised application for the masses, blending social media with crypto innovation. However, despite its supposed potential, Makenow.meme struggled to find product-market fit (PMF). The platform had lacklustre adoption, causing user activity to quickly taper off post-launch. While the concept was novel, it lacked the execution and incentives needed to drive mainstream adoption.
The resurgence of Pump.fun competitors
Pump.fun’s dominance didn’t go unchallenged for long. A pivotal moment came when Pump.fun decided to migrate its “graduated” tokens, those that reached a certain market cap threshold, from Raydium to its own Pumpswap DEX. This move sparked a wave of competition, as Raydium responded by launching its own token launchpad, LaunchLab. Additionally, Believe launched a similar product to Makenow.meme which allows users to launch tokens on X, while Bonk introduced its own launchpad as well, built on Raydium’s LaunchLab technology stack. Most recently, Boop entered the scene, spearheaded by Dingaling, founder of Pancakeswap, LooksRare, and more.
Boop, the most promising newcomer
Boop stands out as the most intriguing of the new entrants, thanks to its innovative approach and “fun” ponzinomics. Boop introduces fee-sharing mechanisms, a feature that addresses one of Pump.fun’s key criticisms: the lack of incentives for token creators and early adopters. Boop also employs aggressive onboarding strategies to attract users. To highlight this, some DeFi power users were given $BOOP airdrops, but with a catch. They must launch a token, market it, and rally others to buy it in order to claim their airdropped tokens. Additionally, Boop offers fee sharing, airdrops and other incentives for token deployers, $BOOP stakers and hodlers of recently “graduated” tokens. While it’s early days, Boop’s dynamic incentive structure and willingness to rethink what a launchpad can be could foster the growth of a loyal and committed user base over time.
Concluding thoughts
There is no doubt that the token launchpad vertical on Solana is becoming increasingly saturated. The ability to fork protocols is a fundamental feature of blockchains and not inherently negative. However, the proliferation of near-identical products risks stifling innovation as they offer little differentiation, thus contributing to a crowded market where user attention and liquidity are spread thin.
Instead, the crypto space should encourage projects like Boop, under Dingaling’s leadership, to iterate on the design of existing products. By introducing novel incentive structures and rethinking user onboarding, Boop demonstrates that there’s still room for innovation in this space. As the market evolves, the key to success will lie in balancing accessibility with sustainability, ensuring that token launchpads not only empower creators but also foster a healthier, more resilient crypto ecosystem.
*Disclosure: The information provided on this newsletter is for general informational purposes only and does not constitute professional nor investment advice.
