Pump.fun Launches Investment Arm as Memecoin Trading Volumes Slide

Memecoin launchpad Pump.fun is moving into early stage investing as activity on its core platform continues to cool from last year’s highs.

The company said on Monday it is launching Pump Fund, a new investment arm paired with a $3 million hackathon. The fund will back 12 teams with $250,000 each, valuing every project at $10 million at entry. This marks Pump.fun’s first major move away from being only a memecoin issuance venue.

$3 Million Hackathon Targets Early Builders

The hackathon will run for 30 days and is open to projects at any stage. Teams are required to create a token, post regular updates, and let open market trading decide whether the project gains traction.

Pump.fun said projects do not need to be crypto focused. The firm plans to support teams long term and offer direct guidance from its founders. Selection will not depend on pitch decks or private committees.

Instead, market demand will act as the filter. Users who buy tokens early effectively fund the projects they believe can succeed. Pump.fun said this setup removes the need to convince venture firms or judges to secure capital.

Shift Comes as Volumes Fall Sharply

The timing follows a steep drop in trading volumes on Pump.fun. Data from Token Terminal shows monthly volume peaked at $11.75 billion in January 2025, just one year after the platform launched.

Since then, volumes have declined each month. In December, trading volume fell to $2.43 billion as memecoins lost appeal during a volatile period for the broader crypto market. Fewer large launches and lower retail interest have reduced fee income tied to trading.

Pump.fun said Pump Fund is meant to reduce reliance on short term trading cycles tied to meme assets.

Founders See Strong Demand for New Ideas

Co founder Alon Cohen said demand for strong builders remains high even as market conditions change. In a post on X, he said recent crypto trends show traders and long term capital are still looking for early stage teams with clear direction.

Cohen said token launches have become a way for projects to raise funds directly from users who want exposure to new ideas. He added that instant liquidity allows teams to secure backing without long fundraising cycles.

He pointed to the rise of token based artificial intelligence projects as proof that early stage funding through open markets can scale quickly when interest is strong.

Pump.fun said it plans to fund teams across different sectors, with a focus on fast development and clear communication. The company added that it will judge projects on whether they can survive beyond short hype cycles as it builds out its new investment arm.