Justin Sun Bets on Memecoins With Tron-Based Token Generator

Memecoins have become a key component of the recent crypto bull market.

Justin Sun, the founder of Tron, is known for his love of memes and his latest venture is sure to please the crypto community. Sun.io, the decentralized finance (DeFi) protocol associated with him, has just released SunPump, a platform that will allow users to create memecoins on the Tron blockchain.

The platform will be a direct competitor to the popular Solana equivalent, pump.fun, where transaction fees surged to an all-time high this week with a total of $5.3 million in 24 hours. While pump.fun has been enabling the rapid creation of memecoins, several of them, including SHIBA, PEPE, WIF and FLOKI, have managed to cross the $1 billion market capitalization mark.

However, one major criticism of platforms like pump.fun is that they provide an easy and cheap way for bad actors to create a memecoin only to perform a rug pull once investors have added value to the token. Several memecoins have been created and then abandoned by their developers in recent months.

"To address this, the Sun team is committed to enhancing our review processes, introducing community oversight, and promoting transparency to ensure the safety and trust of our users," Sun said in an interview with CoinDesk. "SunPump conducts a thorough vetting of creators and projects before they are allowed to launch on the platform, helping to ensure that they meet specific standards of integrity."

Another key difference between SunPump and pump.fun is that thanks to a partnership with crypto exchange Poloniex, projects that maintain $1 million in daily trading volume for three days will be eligible to be listed on the platform.

Finally, Tron and SunPump are also putting $10 million together to create the Meme Ecosystem Boost Incentive Program, which is designed to provide resources for newly launched tokens.