Pump.fun and Moonshot 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.
- Moonshot: Uses a similar model. When a token reaches a simulated market cap of $63,200, it migrates to Raydium or Meteora 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 Phantom flags these tokens
UGC (user-generated content) memecoins carry higher risk than established tokens:
- No audits or formal security checks
- Begin with little or no liquidity
- No development team or roadmap
- Extreme volatility
- May be abandoned or used for malicious purposes
When Phantom detects one of these tokens in your wallet or in a transaction, it displays a warning label to help you identify experimental or high-risk assets.
Tip Always research tokens before interacting with them. Only buy, trade, or hold assets from trusted sources and known platforms.