Pump.fun has introduced a new investment arm, marking its most significant move beyond its identity as a memecoin launchpad. The initiative, called Pump Fund, was announced on Dec. 20 and launched publicly with a $3 million “Build in Public” hackathon that places funding decisions directly in the hands of the market.
Introducing the $3,000,000 Build in Public Hackathon
— Pump.fun (@Pumpfun) January 19, 2026
Brought to you by Pump Fund - pump fun’s New Investment Arm
It’s time to completely reimagine how early-stage projects are built and funded.
Learn more 👇 pic.twitter.com/l1TJcxv1J0
The move signals a strategic pivot for the Solana-based platform, which rose to prominence during the memecoin trading boom of late 2024 and early 2025. As speculative volumes declined, Pump.fun has begun positioning itself as a longer-term startup ecosystem rather than a pure token launch venue.
Market-driven funding replaces judges and pitch decks
Under the Build in Public hackathon, Pump Fund will allocate capital to 12 teams. Each selected project will receive $250,000 at a $10 million valuation, alongside mentorship from Pump.fun’s founders. Applications remain open until Feb. 18, 2026, with the first winners expected within 30 days of the program’s launch.
Unlike traditional accelerators or venture-backed hackathons, the program removes judges, pitch decks, and closed-door evaluations. Teams must launch a token, retain at least 10% of its supply, and demonstrate real traction through open communication, product shipping, and community engagement.
“Instead of having to please judges/VCs for money, tokenizing allows the market to become the judge,” Pump.fun said. “Your users are the ones that fund you by betting on you early.”
Projects are not restricted to crypto-native ideas. According to Pump.fun, teams across all verticals, maturities, and traction levels are eligible, provided they ship products and communicate openly throughout the process.
Selection criteria emphasize visible progress, organic demand, and long-term viability rather than connections or presentation polish. Pump.fun framed the model as a direct alternative to traditional gatekeeping in early-stage funding.
A response to changing market conditions
The launch of Pump Fund comes as activity on Pump.fun has cooled from its peak. The platform recorded an all-time high monthly trading volume of $11.75 billion in January 2025, according to Token Terminal. By December, that figure had fallen to $2.43 billion as trader appetite for speculative assets weakened amid broader market volatility.
Pump.fun acknowledged the shift in tone. The company said the new investment arm would align itself with projects “long-term” rather than focusing on short-lived token cycles. The fund builds on recent ecosystem efforts that include creator grants, liquidity support initiatives, and platform updates designed to reduce rug risks and improve collaboration.
Founders argue demand for conviction remains high
Pump.fun co-founder Alon Cohen addressed the rationale behind the model in a post on X. He said crypto trends over the past three years show that “the demand for good founders by traders and long-term allocators continues to be incredibly high, no matter the market conditions.”
Before pump fun was invented, myself and my co-founders tried building a ton of different ideas. Consumer, DeFi, SocialFi, NFTs - none of it worked.
— alon (@a1lon9) January 19, 2026
One of the biggest problems we had (other than the fact that our solutions didn’t really solve anyone’s problems) is that we found… https://t.co/HKzBNEilk4
Cohen added that token launches attracted users because “users loved buying into fresh ideas they thought had a chance of becoming successful,” with millions of potential participants acting as early users and investors.
“Instant liquidity meant that you can get funded too,” Cohen said, pointing to the emergence of tokenized artificial intelligence projects as evidence of broader experimentation in early-stage funding.
Transparency concerns and early skepticism
Industry observers have raised concerns about governance, verification, and fairness. Musheer Ahmed, founder and managing director of Finstep Asia, said the model requires clearer safeguards to ensure projects do not receive “bias or favours/preferred treatment from the Pump.fun team.”
Ahmed highlighted the need for mechanisms that verify whether traction is genuine rather than “AI-driven or bot-driven,” warning that market-based selection systems remain vulnerable to manipulation.
Pratik Kala, head of research at Apollo Crypto, described the approach as “certainly an interesting concept” that can provide social proof. He also questioned tokenholder rights, citing past examples where token structures failed to deliver value back to participants.
“For this to succeed, there has to be transparency and look-through on the project's success and dollars flowing back to tokenholders,” Kala said.
An experiment under close scrutiny
The announcement arrives as Pump.fun works to rebuild trust after a turbulent 2025 that included pausing livestreaming features following incidents involving animal cruelty and self-harm broadcasts. The platform also faces a class action lawsuit that alleges its parent company, Baton Corp., operated an illegal securities exchange.
Against that backdrop, Pump Fund represents Pump.fun’s most structured attempt yet to evolve beyond memecoins. Whether the model produces durable startups or serves as a funding experiment will become clearer once the first cohort begins building in public.
Roman Zaika
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