This article explains what UGC (user-generated content) memecoins are, how platforms like Pump.fun and Moonshot work, and why Phantom flags these tokens in your wallet.
What are Pump.fun and Moonshot?
Pump.fun (pump.fun) and Moonshot (moonshot.money) are Solana-based platforms that let anyone create and trade memecoins—tokens based on jokes, memes, or trends. These tokens can launch instantly, without audits, liquidity, or formal project teams.
How they work
- Pump.fun: Tokens launch with a bonding curve that simulates price and market cap as users buy in. Once a token reaches a simulated market cap of $69,000, Pump.fun adds liquidity and lists it on Raydium (raydium.io).
- Moonshot: Uses a similar model. When a token reaches a simulated market cap of $63,200, it migrates to Raydium or Meteora (meteora.ag) for public trading.
These tokens are real SPL (Solana Program Library) assets, but they start with no external liquidity and no price discovery outside the platform.
Why does Phantom flag these tokens?
UGC memecoins carry higher risk than established tokens:
- Most memecoins have no audits or formal security checks
- They negin with little or no liquidity
- They lack a development team or roadmap
- They show extreme volatility
- They may be abandoned or used for malicious purposes
To help you identify experimental or high-risk assets, Phantom displays a warning label next to certain tokens.
Tip Always research tokens before interacting with them. Only buy, trade, or hold assets from trusted sources and known platforms.