Main Highlights
- Pump.fun has launched an experimental Mayhem Mode, introducing AI agents to boost early trading volumes for new tokens.
- These AI agents will not create new tokens but will actively participate in trading to enhance early-stage appeal and liquidity.
- Mayhem Mode bots mint an additional 1 billion tokens, actively trading them for the first 24 hours before burning any unsold supply.
- The platform acknowledges that this experimental feature may increase volatility and risk for initial token launches.
- Currently, Pump.fun is experiencing a slowdown in activity, with fewer new token creations and a decrease in active addresses.
Pump.fun Introduces AI Agents with Mayhem Mode
Pump.fun has unveiled an experimental feature called Mayhem Mode, designed to invigorate trading activity for newly launched tokens by incorporating AI agents. This move represents a significant shift, as most previously deployed AI agents relied on human oversight for their operations. The integration of automated bidding for meme tokens is a novel step in this evolving landscape.
The primary objective of Mayhem Mode is to enhance initial trading volumes. While the platform did not formally announce the mode or the specifics of the AI agents involved, the community discovered its presence within the platform’s documentation. Notably, unlike some prior AI agent experiments focused on generating new meme tokens, these agents will not be involved in token creation.
The existence of a trading agent wallet for Mayhem Mode was already known, with speculation that it could provide trading signals and bolster copy-trading activities. This AI entity is also associated with the Agent Pumpy Solana vanity address.
‘Mayhem Mode aims to increase the number of good projects in the pump.fun ecosystem by making coin projects more appealing to engage in at early stages where they typically might fail,’ explained Pump.fun in its documentation.
The AI agent, believed to be named BUPA, reportedly holds its native BUPA token and additional Mayhem tokens. Its trading activities commenced on November 12, with only a few hours of operation before the community identified its actions.
AI Agent Mechanics in Mayhem Mode
For creators looking to leverage Mayhem Mode, it must be selected prior to launching a new token. This feature will not be applied to existing tokens already on the Pump.fun bonding curve or those that have graduated.
As part of the Mayhem Mode process, the AI agent is set to mint an additional 1 billion tokens for each meme supply, bringing the total to 2 billion tokens. Following this, the AI agent will engage in random trading activities using these tokens. This experimental functionality is expected to introduce increased risk and volatility to the initial trading phases of these tokens.
The AI agent’s strategy involves a random selection of buy and sell actions. At the conclusion of the 24-hour period, any unsold tokens held by the AI agent will be burned. The platform states that any tokens sent to the AI agent wallet during the Mayhem Mode period will also be burned and will not influence the AI’s trading decisions.
It’s worth noting that the AI agent might not solely compete against human traders. Given the prevalence of sniping bots in the crypto space, the AI agent may often find itself competing against these automated trading bots.
Pump.fun has issued a disclaimer stating that Mayhem Mode does not inherently add economic value to a token or serve as a guarantee of future performance.
Current Trends on Pump.fun
Pump.fun is currently experiencing a period of reduced activity. This slowdown is characterized by a decrease in the creation of new tokens and fewer tokens successfully graduating from the platform. Daily token creation has reportedly fallen to between 12,000 and 15,000 tokens. Furthermore, the number of daily active addresses has dropped to approximately 31,000, a significant decline from its peak of over 200,000 recorded roughly a year ago.
The number of wallets launching new tokens has fallen below 4,000, indicating a drop-off following the initial excitement generated by the creator reward program. Consequently, fewer tokens are achieving higher valuations.
Despite these trends, Pump.fun continues its buy-back program for the PUMP token, maintaining its price around $0.004. Currently, Pump.fun and PumpSwap are generating approximately $2.8 million in daily fees, which appears sufficient to support these ongoing buy-back initiatives.
Expert Summary
Pump.fun’s introduction of Mayhem Mode signifies an experimental effort to boost early trading volumes for new tokens by deploying AI agents. While intended to enhance project appeal, this feature introduces increased volatility and risk. The platform is currently navigating a slowdown in user activity and token creation.
