Welcome to the meme economy: Pump pumps, Pepe hops and Binance apes in

Binance has announced the launch of its own memecoin launchpad offering users a new way to participate in early token offerings through a Bonding Curve Based Token Generation Event (TGE). This model, introduced in collaboration with Four.Meme, is available via the Binance Wallet and marks Binance’s first use of a bonding curve pricing model for token sales.

The launchpad will allow users to gain early access to new tokens which are not (and may never be) listed or traded directly on the Binance exchange. The Binance Wallet will allow users to acquire tokens on TGE during a subscription period. These tokens have transfer restrictions while the event is ongoing. After the event concludes, the tokens become transferable and are listed on Binance Alpha, Binance’s platform for “early-stage crypto projects”.

The newly announced TGE uses a bonding curve, which is a mathematical pricing mechanism where the cost of a token increases as more tokens are purchased. Rather than fixing the price, it adjusts automatically according to the level of demand. During the event, users have two options. They can sell their tokens back to other participants within the bonding curve ecosystem during the subscription period, or they can wait until the tokens become transferable and tradable on Binance Alpha after the event concludes.

The bonding curve based TGE will follow a timeline provided by Binance:

1. Phase 1: Users place buy orders for non-transferable tokens on a first come first served basis using Binance Coin (BNB) via the Binance Wallet. Individual purchase limits are enforced to ensure fair participation.

   
   

2. Phase 2: If the maximum token cap is reached, users can still place orders, but they will be pending until existing participants sell their tokens back into the system. Once a buy order is submitted, it cannot be cancelled and the BNB used is locked until the event concludes.

   
   

3. Phase 3: The TGE has a fixed countdown. When the timer ends, no orders are accepted and any orders that were not filled are cancelled.

   
   

4. Phase 4: The purchased tokens become transferable after the TGE ends. The tokens are listed on Binance Alpha, opening them up for trading on the open market.

   
   

While token launchpads promote the possibility of so-called “fair launches” which are more equitable, transparent and inclusive (as opposed to VC fundraising or presales) where regular investors can participate in a token launch at the outset, the use of a bonding curve can encourage a speculative frenzy for popular new listings. In addition, early stage tokens such as memecoins may make little or limited disclosure about the tokens’ utility, lack a track record and are susceptible to price manipulation as we discussed in an earlier post.

Pump.fun’s Record-Breaking ICO

Binance’s announcement coincided with Solana-based Pump.fun making headlines for conducting one of the largest initial coin offerings (ICOs) in crypto history. Where Binance’s model requires projects to apply in order to participate, Pump.fun allows anyone to launch a token by connecting a Solana wallet, entering a name, ticker, image and description, paying a small fee and going live.

On 12 July 2025, Pump.fun raised US$600 million in just 12 minutes, selling 150 billion tokens at $0.004 each in a public sale. This followed a private sale earlier that week, in which 180 billion tokens were sold. In total, the project raised approximately US$1.32 billion. The public sale was conducted via a number of partner exchanges.

Pump.fun disclosed the following token allocation for its one trillion-token supply:

• 33% via ICO

• 24% for community and ecosystem initiatives

• 20% for the team

• 13% for existing investors

• 2.4% to the ecosystem fund

• 2% to the foundation

• 3% for livestreaming

• 2.6% for liquidity and exchange provisioning

Pump.fun has been tight lipped on how it plans to use the ICO proceeds. Plans for its own decentralised exchange called Pump Swap are already underway.

The crypto community appears divided on whether Pump.fun's ICO is a positive or negative development. As one Reddit user puts it, Pump.fun is reinforcing "[a] culture that rewards low-effort speculation and punishes depth, research, and actual innovation. It creates the illusion of opportunity while systematically draining liquidity and attention from legitimate builders".

Furthermore, ICOs can raise serious legal and regulatory concerns. For example, a token launched via an ICO may be considered a financial product which would require the issuer to hold an Australian Financial Services (AFS) licence particularly where proceeds are to be used to build a platform or technology with a view to passing on returns to holders. Promotional material that suggests the token will increase in value may also breach prohibitions against misleading or deceptive conduct. With Australia broadening its anti-money laundering regulations to cover ICOs, they can also involve the risk of beaching AML and sanctions regulations where conducted without Know Your Customer checks.

Pepe and his descendants

Another group is looking to leverage the success of prominent memecoim project PEPE by founding its own mention launchpad called PEPEPAD. It is not clear whether the launchpad has any official connection to the PEPE token. Meanwhile, another project Little PEPE has conducted presales in recent weeks with the ambition to launch its own Ethereum compatible low cost layer 2 blockchain to scale potential applications.

Memecoins have evolved far beyond their origins as internet jokes. From viral community projects like Dogecoin to politically branded tokens like $TRUMP, they have received widespread adoption and, despite apparently zero sum economics, are continuing to drive new innovation and product launches. While memecoins have so far received limited scrutiny from regulators in the United States and Australia, they are not entirely unregulated and misleading promises, price manipulation or outright fraud are liable to be prosecuted as such. As memecoins feed a meme economy, issuers, platform developers and users will need to grapple with a complex and evolving regulatory environment and increasing scrutiny from regulators and the public.

Written by Steven Pettigrove and Emma Assaf