Raydium token soars double-digits as Solana teases new memecoin launchpad

Raydium token soars double-digits as Solana teases new memecoin launchpad
DeFi
Move over Pnut. Raydium's token price spiked after it announced a new memecoin launch pad. Illustration: Gwen P
  • LaunchLabs will look like Pump.fun, but one developer described it as more “versatile.”
  • The venture is the latest salvo in the clash between Raydium and Pump.fun.

Raydium’s native RAY token soared more than 12% on Wednesday after the decentralised exchange revealed it was developing a new token launch pad.

Dubbed LaunchLabs, it will allow anyone to spin up cryptocurrencies on Solana, Infra, a pseudonymous contributor behind Raydium, said on X.

Though the venture will go head-to-head with Pump.fun, a buzzy token launchpad behind a slew of controversial memecoins on Solana, Infra cast LaunchLabs in a different light.

They said the platform would “mimic” Pump.fun’s user interface, but it isn’t a fork.

“It’s not about stealing Pump users,” Infra said on X. “It’s about enriching Solana.”

Raydium declined to comment beyond Infra’s thread on X.

Solana projects clash

LaunchLabs is just the latest salvo in a growing clash between Raydium and Pump.fun.

That’s because the ties between the two Solana projects run deep.

Tokens launched on Pump.fun that hit a market capitalisation of more than $69,000 can begin trading on Raydium — and generate fees for the exchange.

Given that 40% of the exchange’s trading volume today comes from Pump.fun tokens, according to a Dune dashboard, it’s been a boon for Raydium.

The exchange has generated over $30 million in trading fees over the last 30 days, according to DeFiLlama.

However, the relationship has come under strain in recent weeks after onchain sleuths revealed in February that Pump.fun was testing a native exchange mechanism, suggesting it would dislocate from Raydium.

The RAY token plummeted more than 20% at that time.

Raydium contributor Infra called the move a “strategic miscalculation” given the exchange’s “crucial” role for Pump.fun.

Pump.fun hasn’t officially announced the in-house exchange’s development. Alon Cohen, a cofounder of the project, did not immediately respond to request for comment.

‘Easy call’ for Raydium

Meanwhile, investors have celebrated LaunchLabs as a key win for Raydium.

“This was an easy call for RAY,” Richard Galvin, CEO of crypto investment firm Digital Asset Capital Management, said of Wednesday’s launch reveal.

“Pump.fun made the mistake of trying to take on Raydium — when Raydium was always best positioned to launch a competing, less-extractive meme launchpad.”

Liam Kelly is a Berlin-based reporter for DL News. Got a tip? Email him at liam@dlnews.com.

Related Topics