Memecoin launchpad Pump.fun has unveiled a new investment arm, Pump Fund, marking its most significant expansion beyond its core memecoin-focused business. The initiative will debut with a $3 million hackathon designed to fund up to 12 projects, each receiving $250,000 at a $10 million valuation. The move comes as trading activity on Pump.fun has cooled from its early 2025 peak, prompting the platform to seek more durable, long-term opportunities.
Pump.fun said Pump Fund will invest in projects across a broad range of sectors and maturity stages, including those that are not directly crypto-related. In addition to capital, portfolio companies will receive mentorship from Pump.fun’s founders, signaling a shift toward longer-term alignment rather than short-cycle speculative launches. The firm emphasized that it is looking for teams that can execute quickly while maintaining transparency with users and investors.
Hackathon Model and Market-Based Funding
The inaugural hackathon will run for 30 days and is structured around Pump.fun’s core belief in market-driven validation. Participants are required to create a token, regularly publish progress updates, and allow market demand to determine whether their project gains traction. Rather than relying on traditional venture capital committees, Pump.fun said the structure enables users and traders to act as the primary arbiters of value.
According to the company, this approach reflects broader changes in how early-stage crypto projects are funded. Tokenization allows founders to access liquidity and community support earlier in a project’s lifecycle, while users gain exposure to new ideas without the constraints of private investment rounds. Pump.fun argued that this model reduces friction for founders and aligns incentives more closely between builders and their early supporters.
Market Context and Volume Declines
The launch of Pump Fund comes against a backdrop of declining trading volumes on the platform. Pump.fun recorded an all-time high monthly trading volume of $11.75 billion in January 2025, driven by intense retail interest in memecoins. Since then, volumes have steadily fallen, with December activity totaling $2.43 billion, according to Token Terminal.
This slowdown mirrors broader shifts in crypto markets, where speculative assets have faced waning demand amid tighter financial conditions and increased investor selectivity. Pump.fun co-founder Alon Cohen said the new initiative reflects persistent demand for strong founders, even during periods of reduced risk appetite. He added that recent cycles have demonstrated how tokenized early-stage projects can attract both users and long-term capital when execution and vision align.