Memecoin launchpad Pump.fun is expanding its focus beyond memecoins with the introduction of a new investment arm designed to support promising early-stage startups. This strategic move signals a pivot toward fostering long-term project development.
On Monday, Pump.fun announced the establishment of Pump Fund, accompanied by a $3 million hackathon initiative that will provide funding to 12 selected projects. Each winning team is slated to receive $250,000 in funding at a $10 million valuation.
Pump Fund Targets Long-Term Startup Growth
Pump Fund is designed to back projects across all stages, industries, and traction levels, with no requirement for teams to be crypto-native. The fund aims to build long-term partnerships with founders and offer hands-on mentorship from Pump.fun’s founding team.
The company is actively seeking teams that demonstrate rapid product development, transparent communication, and a clear path toward sustainable long-term viability. Pump.fun emphasized that it will evaluate the long-term potential of each project beyond just product and social traction.
30-Day Hackathon Lets the Market Decide
As part of the launch, Pump.fun has introduced a 30-day hackathon. Participants in this initiative are required to create a token, share regular project updates, and allow the market to organically evaluate and fund their projects.
In this model, users and traders serve as the primary decision-makers, replacing traditional venture capital judges. Pump.fun explained that tokenization empowers the market to act as the judge, enabling users to fund projects by investing early rather than through closed-door pitches to VCs.
Demand for Strong Founders Remains High
Alon Cohen, co-founder of Pump.fun, highlighted on X that despite market fluctuations, the demand for talented founders continues to be exceptionally high. He noted that the numerous crypto trends observed over the past three years underscore this consistent demand, irrespective of market conditions.
Cohen observed an increasing embrace of early-stage token launches by users, fueled by enthusiasm for new ideas and the prospect of early investment. He suggested that millions of participants could simultaneously become users and investors when liquidity is readily available.
This environment, he added, has been instrumental in sparking a wave of AI-related crypto projects, showcasing the significant potential of early-stage tokenization for both builders and traders.
Pump.fun Trading Volumes Decline From Peak
The introduction of Pump Fund occurs as Pump.fun's trading volumes have seen a decrease from their record highs experienced in late 2024 and early 2025. Data from Token Terminal indicates that Pump.fun achieved a peak monthly trading volume of $11.75 billion in January 2025, approximately one year after its launch.
Subsequently, volumes have experienced a steady decline. By December, monthly trading activity had fallen to $2.43 billion, coinciding with a broader market volatility that impacted the popularity of speculative assets like memecoins.
Despite this downturn, Pump.fun's strategic move into supporting long-term startup funding indicates a significant shift in its operational focus.