2025 Pump.fun Tutorial: Web3 Investment Strategies and Risk Management

Introduction

In the Web3 investment landscape of 2025, Pump.fun has become a force that cannot be ignored. This platform has not only completely revolutionized the process of token creation but has also sparked a discussion about cryptocurrencies. Price Prediction The buying and selling strategies as well as the craze for token issuance. However, opportunities and risks coexist. This article will delve into the tutorial for using Pump.fun, analyze current Web3 investment strategies, and reveal the development trends of blockchain technology, helping you make informed decisions in this rapidly changing market.

Pump.fun: The Mysterious Power Leading the Web3 Craze

As a rising star in the Solana network, Pump.fun is leading an unprecedented Web3 revolution. With its simple token creation mechanism and fair distribution model, the platform has attracted numerous investors and entrepreneurs. As of June 2025, Pump.fun has witnessed the issuance of over 4.2 million tokens, with a cumulative trading volume exceeding $28 billion USDT, making it an important player in the Web3 ecosystem.

Its core advantage lies in the extremely low entry barrier. Anyone can create and launch their own token in just a few minutes for about $2. This convenience significantly reduces the difficulty for average users to participate in Web3 projects, laying the foundation for the prosperity of decentralized finance. However, this convenience also brings risks. According to data from blockchain security company Solidus Labs, of the 7 million tokens issued on Pump.fun, only 97,000 projects have liquidity exceeding $1,000. This data indicates a very high failure rate of projects on the platform, serving as a warning to investors to carefully assess the risks.

Despite the risks, Pump.fun has still given birth to some remarkable success stories. Projects like SharkCat and Hobbes have achieved astonishing market cap growth in a short period, further igniting the market’s enthusiasm for Meme coins. However, this frenzy has also attracted the attention of regulators. As the Web3 space continues to evolve, finding a balance between innovation and Risk Management has become a significant challenge facing the entire industry.

In this context, as a leading cryptocurrency trading platform, Gate is actively exploring how to provide users with a safer and more transparent Web3 investment environment. Through stringent project listing standards, price prediction tools, and an advanced Risk Management system, Gate is committed to creating a reliable platform for Web3 investors.

The Paradise for Crypto Gold Diggers: Pump.fun Operation Guide

The operating process of Pump.fun is relatively simple, but novice investors need to be particularly cautious. First, users need to prepare a compatible Solana wallet, such as Phantom or Solflare. Then, after connecting the wallet to the platform, they can begin creating tokens. Users need to fill in the token name, symbol, de_script_ion, and upload a representative image. After completing these steps and paying a deployment fee of about 0.02 SOL (approximately $3.5), the token will be online immediately and available for trading.

Pump.fun adopts a unique pricing mechanism known as the Bonding Curve Model. This model adjusts token prices based on supply and demand dynamics. Early buyers can usually acquire tokens at a lower price. When the token’s market value reaches a certain threshold (typically $69,000), the system automatically transfers a portion of the funds to decentralized exchanges like Raydium to provide liquidity.

However, investors should note that the project risks on Pump.fun are extremely high. According to statistics from the on-chain data analysis platform Dune, over 99% of tokens on Pump.fun ultimately end up worthless. This astonishing failure rate highlights the high-risk nature of the Meme coin market. Therefore, investors must conduct thorough risk assessments and implement proper Risk Management when participating in Pump.fun projects.

Risks and Opportunities Coexist: Pump.fun Investment Strategy Analysis

On a platform like Pump.fun, which offers risk-reward opportunities, it is crucial to develop a reasonable investment strategy. Firstly, investors need to clarify their own risk tolerance. Considering the high failure rate of platform projects, it is recommended to limit the investment amount to less than 1% of total assets. Secondly, diversifying investments is an effective way to reduce risk. Avoid putting all funds into a single project, but instead spread investments across multiple potential projects.

For each project, investors need to conduct thorough due diligence. This includes researching the team’s background, assessing the project’s technical feasibility, analyzing the token economic model, and understanding the supply and listing timeline. It is particularly important to note that many projects on Pump.fun lack substantive value propositions and rely more on social media hype and short-term speculation. Identifying projects with long-term development potential is especially crucial.

Timing is also crucial in investment strategies. Since the project lifecycle on the Pump.fun platform is usually short, investors need to closely monitor market dynamics to seize buying and selling opportunities. Typically, early participation in projects carries higher risks, but the potential for returns is also the greatest. As the project develops, risks may decrease, but the profit margin also shrinks.

It is worth noting that investment activities on Pump.fun may face legal and regulatory risks. With the strengthening of global regulations on cryptocurrencies, investors need to understand and comply with relevant laws. As a highly compliant trading platform, Gate provides users with a safer investment environment, but investors still need to bear the risk themselves.

Conclusion

Pump.fun is leading the Web3 wave, creating an environment of both opportunities and challenges with a low barrier to entry. Investors must carefully assess risk management and develop reasonable strategies. With the continuous development of DeFi, NFT, DAO, and other fields, the Web3 investment landscape is also constantly changing. Continuous learning and adaptation are key to achieving success.