Right now, user-generated content (UGC) memecoin creation and trading platforms are at a high.
The first thing you need to understand is what UGC memecoins are and how platforms like pump.fun and Moonshot play a role. Then, we’ll talk about how Phantom displays these tokens directly in your wallet.
What are Pump.fun and Moonshot?
Pump.fun is a trading platform and token launcher that allows users to create and trade UGC memecoins. These tokens are true SPL fungibles, but have no external price or liquidity.
The price and simulated market cap exist within Pump.fun contracts, using a bonding curve that adjusts based on buys and sells. Once a memecoin reaches a theoretical $69,000 market cap, Pump.fun deploys the token to Raydium with liquidity, making it tradable from any Solana interface.
Moonshot is a similar trading platform and token launcher, making it easy to create and trade memecoins. Like Pump.fun, once a token on Moonshot reaches a $63,200 market cap, all remaining tokens and liquidity migrate to Meteora or Raydium for broader trading access.
Why does Phantom display a warning for these tokens?
Since UGC memecoins can be created by anyone in minutes—with no audits, minimal liquidity, and no project teams—many of these tokens are highly volatile, easily abandoned, or intentionally malicious.
Because of these risks, Phantom automatically flags these tokens in your wallet to help you make informed decisions and recognize when you’re interacting with higher-risk assets compared to more established cryptocurrencies.