Raydium Token Drops 29% Amid Pump.fun AMM Rumors

The “meme token factory” Pump.fun may introduce automated market maker (AMM) features to its platform. These tools are currently in beta testing.

EXCLUSIVE : @pumpdotfun is working on their own AMM liquidity pools, which is currently being tested on https://t.co/nuir86gnkl

It seems they are planning to have pump tokens graduate to their own pools instead of Raydium so they can either extract more fees on Solana or have… pic.twitter.com/svmWfl6Rlt

— trenchdiver (@trenchdiver101) February 24, 2025

This development was highlighted by a trader known as trenchdiver. According to a shared screenshot, the Pump.fun team added the first test token, CRACK, to an AMM pool on February 20.

An automated market maker allows for the creation of liquidity pools and trading via smart contracts without the need for a counterparty.

Once tokens launched on Pump.fun reach a liquidity limit of $69,000 (completing the so-called bonding curve), they begin trading on Raydium. The DEX has been one of the main beneficiaries of the meme coin boom on Solana, but the platform’s AMM could deprive it of some revenue, according to trenchdiver.

“It seems they are planning to move pump tokens to their own pools instead of Raydium to either earn more fees from Solana or have some reward mechanism for holders,” he stated.

Following trenchdiver’s tweet, the price of Raydium’s token (RAY) plummeted nearly 29% (CoinGecko). At the time of writing, the asset is trading close to $3, down from approximately $4.25.

Since its launch in January 2024, Pump.fun has generated commission revenue amounting to $431 million.