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A brief history of token launchpadsToken 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.