Pump.fun announced Mayhem Mode and a new AI agent capable of trading meme tokens
Pump.fun introduced 'Mayhem Mode,' allowing AI agents to participate in trading newly launched tokens to increase early trading volumes. The AI agent, notably called BUPA, will mint an additional 1 billion tokens per launch, trade them randomly for 24 hours, and burn any unsold tokens. This experimental feature may lead to higher volatility but does not guarantee economic value or future performance for tokens. The AI agent's activity is designed to enhance engagement with new projects in the ecosystem. However, Pump.fun's overall activity has slowed, with fewer new token creations and lower transaction volumes, while daily fees stabilize at $2.8M.
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Introduction of Mayhem Mode
Pump.fun announced an experimental Mayhem Mode, allowing AI agents to join the trenches for newly launched tokens. This automated bidding feature marks a significant step for AI agents and memes, as most agents previously relied on human assistants. With this initiative, Pump.fun aims to boost early trading volumes by integrating AI agents into its ecosystem.
Community Discovery of Mayhem Mode
Interestingly, the meme platform did not explicitly announce Mayhem Mode or the agents involved. Instead, the community discovered this new addition through the project's documentation. Unlike previous experiments, the AI agents will not create new tokens but will be involved primarily in trading existing ones. Notably, the trading agent wallet is publicly known, potentially encouraging copy-trading behavior.
Purpose and Mechanism of Mayhem Mode
According to Pump.fun's documentation, Mayhem Mode aims to increase the number of successful projects within its ecosystem by enhancing the appeal of early-stage coin projects. The AI agent, presumably named BUPA, only owns native BUPA tokens and additional Mayhem tokens. The feature began operations on November 12, with the activity becoming evident to the community just hours after it started.
AI Agent Trading Details
Under Mayhem Mode, AI agents will trade eligible tokens randomly during the first 24 hours of a token launch. Pump.fun clarified that this mode does not add economic value to a token nor promise future performance. Additionally, token creators must opt-in for Mayhem Mode when launching new tokens, as the feature is not applicable to existing ones on the Pump.fun bonding curve. During the process, the AI agent will mint an additional 1 billion tokens for each token's supply and utilize them for trades, making the initial trading period potentially volatile. Unused tokens or those sent to the agent's wallet during this period will be burned after 24 hours.
Challenges and Risks of AI Trading
The random trading logic of the AI agent, including its potential to sell more tokens, could disrupt the bonding curve and restrict human traders from selling. Additionally, the agent may often compete not against humans but against simpler trading bots such as sniping bots. These dynamics could make the token trading environment riskier and more unpredictable during the early phases.
Pump.fun Ecosystem Performance
Despite the new experimental feature, Pump.fun is experiencing a slower phase with reduced activity. New token creations have dropped to 12K to 15K daily, while daily active addresses have reduced to around 31K, compared to over 200K a year ago. The number of wallets launching tokens is also on the decline, with fewer tokens achieving higher valuations.
Platform's Financial Overview
At present, Pump.fun and its related platform, PumpSwap, continue to generate $2.8M in daily fees, which are used to buy back some of the PUMP token supply. Currently, Pump.fun has stabilized the PUMP token price at approximately $0.004, maintaining a balance in the ecosystem despite the decreasing activity.