Pump.fun Launches $3 Million Investment Fund for Startup Projects

TLDR

• Pump.fun launched Pump Fund, a new investment arm to fund startup projects beyond memecoins
• The initiative starts with a $3 million hackathon funding 12 projects at $250,000 each with $10 million valuations
• Pump.fun’s monthly trading volume dropped from $11.75 billion in January 2025 to $2.43 billion in December
• The platform’s PUMP token has fallen roughly 70% from its September all-time high to $0.0026
• Pump.fun recently hit a three-month high with over 30,000 daily token launches after updating creator incentives

Memecoin launchpad Pump.fun announced the launch of Pump Fund on Monday, marking its first major move beyond memecoin creation. The new investment arm will focus on backing startup projects across various sectors.

The platform is kicking off the fund with a Build in Public hackathon. The 30-day event will distribute $3 million across 12 winning projects.

Each selected project will receive $250,000 at a $10 million valuation. Pump.fun stated the investment arm will align with projects long-term and provide mentorship from its founders.

The funded projects do not need to be crypto-related. Pump.fun said it will back ventures of all maturities, verticals, and traction levels.

Selection Criteria and Hackathon Structure

The hackathon differs from traditional venture capital competitions. Instead of judges or VCs deciding winners, the market will determine success.

Participants must create a token and maintain at least 10% of its supply. They will share updates on their projects throughout the 30-day period.

Pump.fun will evaluate teams based on how quickly they ship products and how openly they communicate plans. The platform will assess organic traction, timely deployment, and long-term project viability.

Co-founder Alon Cohen explained that demand for good founders remains high among traders and long-term investors. He noted that instant liquidity through tokenization allows projects to get funded directly by their users.

Trading Volume Decline

The investment fund launch comes as Pump.fun faces declining trading activity. The platform’s monthly trading volume peaked at $11.75 billion in January 2025, just one year after launch.

By December, monthly trading volume had dropped to $2.43 billion. This decline reflects reduced interest in speculative assets like memecoins during a difficult year for the broader crypto market.

The platform’s native PUMP token has also lost value. Since reaching an all-time high in September, PUMP has dropped roughly 70% to $0.0026.

Despite the trading volume decline, Pump.fun recently saw renewed activity. The platform hit a three-month high in daily token launches earlier this month, surpassing 30,000 launches.

This increase followed the platform’s announcement of updates to its incentives program for creators. Pump.fun launched millions of tokens throughout 2024 and 2025, generating hundreds of millions in fees.

The platform raised over $1 billion within minutes when it rolled out the PUMP token in July. The Solana-based platform led the memecoin trend during 2024 and early 2025.

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