Moonshot vs. Pump.fun: Is the New Rival as Secure as It Claims?

Moonshot is a new platform for launching and investing in meme coins on the Solana blockchain, launched by cryptocurrency data aggregator DEX Screener on June 25. It is marketed as a security-focused alternative to Pump.fun.

A meme coin is a digital currency that creates a community of investors around an internet trend. Meme coins can be themed around anything, from celebrities and pets to election candidates and crypto in-jokes.

Just as memes have an unpredictable shelf life, meme coins usually attract speculative investors, sometimes called “degens.” These investors look to make quick gains, sell off their holdings at the earliest opportunity, and jump onto the next wave.

Moonshot promises better security, which could attract investors looking for a new opportunity to make big profits. This could be similar to early users’ large earnings on Pump.fun.

But are Moonshot’s security claims really true? In this article, we examine the process of launching a token on Moonshot, the security features introduced by the platform, and the key differences between Moonshot and Pump.fun.

How to Launch a Token on Moonshot

The simplicity of launching a token through pump.fun has been one of its most attractive features. Since its inception in January, the platform has facilitated the creation of over one million tokens. Moonshot offers an almost identical experience, with an analyst calling the newer launchpad “an unambiguous copy” of pump.fun.

To launch a meme coin on Moonshot, you’ll need a cryptocurrency wallet that either contains or can be credited with a small amount of SOL, the native token of the Solana ecosystem. The platform says it was audited in April by Ackee, a blockchain security firm based in the Czech Republic. An initial public pre-sale is not required, meaning you can list your token without first selling it to the public. On the Moonshot dashboard:

Simplified Interface, Focus on Usability

Moonshot positions itself as a cleaner alternative to the typically frenzied “degen” crypto platforms, with a new look and build. Unlike Pump.fun, whose communities often rely on shock value—from live-streamed extremes to outrageous promotions—to attract attention to their tokens, Moonshot does not offer chat or live-stream.

Instead, it prioritizes a cleaner, more functional interface that emphasizes token data from its parent company, DEX Screener. On the other hand, Pump.fun is criticized for poor data integration but compensates for this with a more interactive interface.

However, much of the “degen” activity has always been outsourced to social media and messaging apps like X and Telegram. Moonshot offers access to these platforms through a redirect function.

Anti-Rugging Security Questioned

Rugging is a fraudulent practice where creators withdraw funds and abandon investors. A pump-and-dump scheme involves investors artificially inflating the price of a token before suddenly withdrawing their investments, making huge profits.

Both scenarios make people buying meme coins vulnerable to losing their investments. Inder Phull, the creator of the KOR Protocol, notes that too many rugs have created unease and eroded trust within certain circles. Phull told Cryptonews:

“Moonshot takes a specific stance on security by claiming that all smart contracts behind tokens launched on the platform are fully audited. This approach could help the platform differentiate itself and take the lead in onboarding new users into the ecosystem.”

Smart contracts are digital agreements that autonomously deliver payment once conditions of trade are met. Ensuring these contracts are tamper-proof is important, as bad actors can introduce malicious code to defraud investors.

According to Phull, third-party audits and providing access to open-source code are usually enough to enable a meaningful level of security. Anti-rugging measures could include “using KYC/AML protocols or enabling specific time-unlocks.”

Originally, DEX Screener introduced Moonshot as a rug-proof platform, but this absolute guarantee has been questioned. Rugging watchdog Crypto Rug Muncher commented in a post on X:

“It looks like @dexscreener has updated the description for Moonshot, changing it from ‘Fully audited and unruggable’ to ‘Fully audited smart contracts.’ This shift likely reflects the reality that claiming any project is ‘unruggable’ is misleading to potential investors, given the frequent rug pulls that plague projects on this platform,” the watchdog notes.

It looks like @dexscreener has updated the description for Moonshot, changing it from “Fully audited and unruggable” to “Fully audited smart contracts”. This shift likely reflects the reality that claiming any project is “unruggable” is misleading to potential investors, given… pic.twitter.com/jmIKYKKUdl

— Crypto Rug Muncher (@CryptoRugMunch) July 6, 2024

Long-Term Sustainability

Beyond smart contract audits, Moonshot and pump.fun both encourage a long-term focus. They require meme coins to reach significant market capitalization before they can be traded on Raydium, a decentralized cryptocurrency exchange (DEX) with a wider reach on Solana.

The period meme coins take before reaching the required market cap is called a bonding curve. Memecoin creators on Moonshot bond with their communities from the initial 0.02 SOL launch fee to the Raydium-level market cap of 500 SOL ($73,000). For pump.fun, the required market cap is slightly lower at $60,000.

Moonshot has a fixed supply of one billion tokens, the same amount as pump.fun. This serves as a guarantee that the price of tokens will not be artificially manipulated.

In the event of liquidity migration, Moonshot automatically burns between 150 million and 200 million tokens, locking the protocol’s liquidity. This creates a deflationary effect intended to add value to the remaining tokens. However, Moonshot has not specified the criteria for determining the number of tokens that are burnt.

The platform charges a 1% fee on both buy and sell orders, payable as a taker fee in SOL. It says that there are no fees for token migration or creation. Users must buy a minimum of 0.005 SOL “to avoid spamming and chain congestion.” The minimum sell amount is set at 0.001 SOL.

Moonshot vs Pump.fun: Performance Comparison

According to data from Dune Analytics, Pump.fun leads launchpad statistics by a significant margin, having launched 1.28 million meme coins since the platform went live in January. Since its debut on June 25, Moonshot has seen 43,000 tokens launched, with 66 achieving liquidity migration as of this writing. As of July 9, Pump.fun remains dominant in daily share, creating 3,100 meme coins compared to 485 tokens on Moonshot.

However, Moonshot aims to leverage vertical integration by capitalizing on exclusive advantages from its parent company. “Building upon the Dex Screener infrastructure and ecosystem gives Moonshot a unique community to build from, one that is accustomed to the trusted tools from DEX Screener,” explains Phull.

As of July 8, Pump.fun was making far more revenue, with a daily average of 4,333 SOL, or $667,000. By comparison, Moonshot garnered only 228 SOL (approximately $32,000) in daily revenue. Pump.fun’s total revenue amounted to 373,007 SOL (approximately $52.2 million) against 4,141 SOL (~$580,000) for Moonshot.

Can Moonshot Adapt to New Regulatory?

Many jurisdictions are updating their cryptocurrency regulations, and meme coins are expected to be a key area of interest. Existing regulations such as know-your-customer (KYC) and anti-money-laundering (AML) requirements are likely to apply to meme coins. It will be interesting to see how Moonshot complies to protect investors. KOR Protocol’s Phull added:

“I think Moonshot will be expected to implement KYC or AML procedures given the complex and evolving nature of regulation. It is too easy for people to rug users, and platforms or protocols will be expected to provide a higher level of security and transparency for both users and regulators.”

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