Raydium’s native token, RAY, soared during the early hours of the Asian session. The surge comes after the Solana-based decentralized exchange (DEX) and automated market maker (AMM) announced plans for its token launchpad, LaunchLab.
Token launchpads continue to flood the crypto space, providing an avenue for creating and launching meme coins.
Raydium’s LaunchLab: A New Meme Coin Platform to Challenge Pump.fun
Raydium is stepping up competition in the meme coin space. According to Blockworks, the Solana-based DEX is launching a platform that mirrors Pump.fun, the renowned Solana meme coin launchpad. Raydium’s powering token, RAY, is up by 15% on this news, trading for $1.93 as of this writing.
Raydium’s timing to release LaunchLab is significant. It comes less than a month after reports that Pump.fun was building its own AMM, effectively cutting ties with Raydium. As BeInCrypto reported, the report caused a 31% drop in the RAY price.
Previously, Pump.fun tokens reached a $69,000 market cap and had portions of their liquidity deposited into Raydium’s trading pool before being burned. Similarly, Pump.fun meme coins accounted for 41% of Raydium’s swap fee revenue in the past month.
Based on this background, the separation between Pump.fun and Raydium DEX signified a potential revenue challenge for the latter.
Accordingly, Raydium’s decision to initiate LaunchLab appears to be a defensive move against the expected revenue hit. RAY suffered a 31% price drop in February amid concerns over its future earnings. However, the protocol still holds approximately $168 million on its balance sheet, according to Blockworks Research.
This financial cushion has enabled Raydium to move quickly and roll out a competitive platform.
Blockworks reported, citing anonymous Raydium core contributor Infra, that development on LaunchLab began months ago. However, they shelved it to avoid direct competition with other teams. Following Pump.fun’s move to establish an in-house AMM, Raydium opted to launch its own alternative.
Infra reportedly clarified that LaunchLab is not intended to be a Pump.fun killer. Instead, it presents an option for teams that do not wish to build their programs from scratch. The platform will offer novel linear, exponential, and logarithmic bonding curves to match demand with token pricing.
Additionally, third-party UIs can set their own fees, making the ecosystem more flexible. LaunchLab will support multiple quote tokens beyond Solana’s SOL and integrate with Raydium’s liquidity provider locker, allowing issuers to secure swap fees indefinitely.
According to Infra, this is just the first component of a broader suite of tools aimed at streamlining token creation.
Intensifying Competition in the Meme Coin Launchpad Space
Meanwhile, Raydium is not the only project making moves in the increasingly crowded launchpad sector. GraFun Labs recently integrated TON blockchain for its meme coin launchpad, expanding the market beyond Solana. PancakeSwap DEX is also challenging Pump.fun with the launch of SpringBoard, its meme coin platform.
The meme coin launchpad trend has been gaining traction across multiple blockchains. Emojicoin.fun debuted on the Aptos mainnet four months ago, adding another competitor to the mix. Meanwhile, seven months ago, SushiSwap introduced its meme coin launchpad, designed specifically to combat pump-and-dump schemes plaguing the industry.
While these platforms provide new opportunities for token creators and investors, they have also become avenues for crypto scams. The recent exploit of BNB Chain’s meme coin launchpad, four.meme serves as a stark reminder of the risks associated with these projects.
Similarly, bad actors target these platforms to promote fake tokens. Authorities have also scrutinized token launchpads amid securities law violation claims.
As competition heats up, ensuring security and transparency will be critical for any launchpad’s long-term success.
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