Raydium Questions Pump.Fun’s Potential AMM Launch Amid Token Sell-Off
Raydium, the leading automated market maker (AMM) on Solana, addressed rumors regarding Pump.Fun potentially launching its own AMM. Key points include:
- InfraRAY, a core contributor, stated abandoning Raydium would be a "strategic miscalculation" for Pump.Fun.
- Investors sold RAY tokens after reports of Pump.Fun testing an in-house AMM surfaced.
- Raydium's model currently benefits from fees generated by Pump.Fun tokens, contributing 30% of its daily trading volume.
- Raydium earns over $1 million daily from all liquidity pools.
- Pump.Fun has accumulated $500 million from early-stage token launch fees.
- InfraRAY warned that potential migration to a new AMM could face issues like low demand and inadequate infrastructure.
- Pump.Fun co-founder Alon Cohen did not provide comments on the matter.