Memecoin launchpad Pump.fun is setting up a new investment arm to support high-potential startups, marking its first major move beyond its memecoin-focused origins.
The company said on Monday it will launch Pump Fund alongside a $3 million hackathon, funding 12 projects with $250,000 each at a $10 million valuation.
Pump.fun added that the new arm will take a long-term approach to backing projects, which do not need to be crypto-related, and will offer mentorship from its founders.
The move comes as trading volumes on Pump.fun have declined from early 2025 highs, which were driven by a surge in memecoin trading activity.
Pump.fun said its new investment arm will back projects across all stages, sectors, and levels of traction, with an emphasis on teams that move quickly and communicate transparently about their plans.
Beyond product or social momentum, the platform said it will evaluate the long-term sustainability of each project.
The 30-day hackathon requires participants to launch a token, share regular progress updates, and let the market determine a project’s success.
“Instead of having to appeal to judges or VCs for funding, tokenization allows the market to become the judge,” Pump.fun said. “Your users fund you by backing you early.”
Pump.fun co-founder Alon Cohen said on X that crypto trends over the past three years show demand for strong founders remains high among traders and long-term investors, regardless of market conditions.
He added that users have increasingly embraced buying into new ideas early, believing they could grow into successful projects. With millions of potential users and investors, Cohen said instant liquidity has made it easier for founders to secure funding, contributing to the rise of artificial intelligence projects in crypto and highlighting the potential of tokenizing early-stage startups.
Meanwhile, trading activity on Pump.fun has fallen from its late 2024 and early 2025 peak. The platform recorded an all-time high monthly trading volume of $11.75 billion in January 2025, just one year after launching, according to Token Terminal.
Volumes have since declined steadily, with December trading totaling $2.43 billion, as speculative assets such as memecoins lost appeal amid broader market volatility.
