Challenging the dominance of Pump.fun, how will Bags reshape the Meme coin ecosystem?

Author: Zz

In August 2025, according to data from Defillama, Pump.fun generated over $8.58 million in revenue in just one week, securing a 67.9% market share as the leading platform on Solana. However, according to Solidus Labs' "The 2025 Rug Pull Report," despite the massive scale of the Meme coin market, its ecosystem exhibits high risks and high failure rates, with 98.6% of projects ultimately going to zero.

For the vast majority of Meme creators, they create viral content but are unable to share in the enormous economic benefits it brings, leading the market to become a "graveyard of creators' value." Bags has seized upon this key contradiction and started from there.

Mechanism Decomposition and Innovation Points

Bags provides a new model for the issuance and trading of Meme coins by improving three core aspects: the earnings method for Meme creators, the social experience for users, and the entry trading process.

Automatic Income Distribution Mechanism:

In the traditional model, meme creators find it difficult to benefit from viral distribution. Bags has launched an innovative revenue distribution mechanism called the "Income Assignment function." This feature allows the community to preset the original creator's wallet as the beneficiary when issuing tokens, automatically distributing transaction fees to the creator.

Taking the classic meme "Nyan Cat" as an example, the $NYAN token sets the original creator Chris Torres's wallet as the profit address, allowing for continuous transaction sharing without his involvement. This "passive earning" model breaks through the limitation of Pump.fun that requires creators to personally issue tokens, enabling creators who are not interested in cryptocurrency to also earn actual income.

However, this kind of "forced dividend" without consent carries legal compliance risks. In some jurisdictions, this mechanism may be classified by regulators as a securities issuance or investment contract. Additionally, it may also trigger legal disputes regarding intellectual property or portrait rights.

Integrated Social:

Bags seamlessly integrates group chats with trading, allowing users to see their friends' purchasing activities in real-time, turning community discussions into trading volume instantly. Compared to the single-function Pump.fun, this "chat and buy" model has stronger user stickiness and virality.

However, closed group chats can easily create information silos, making it difficult for external rational or warning voices to enter. This amplifies FOMO emotions and exacerbates speculative bubbles.

Lowering the threshold:

The platform supports various payment methods such as Apple Pay and Coinbase, significantly lowering the participation threshold. It only takes a few minutes from discovering interesting memes to completing a transaction, with convenience far exceeding traditional DeFi applications.

The explosion of Meme coins requires traffic from outside the community, and Bags' low threshold strategy precisely meets this demand. However, a large number of new users lacking risk awareness are flooding in, which can easily lead to losses amid volatility and may also result in excessive speculation within the ecosystem.

Bags has constructed a more complete Meme coin ecosystem through these three points, but still needs to carefully balance compliance and speculative risk control.

market competition landscape

In the competition of issuance platforms on Solana, Bags targets the weaknesses of Pump.fun: lack of mobile support, insufficient social integration, and low creator friendliness.

• Pump.fun occupies 67.9% of the market share, generating significant revenue, but faces high risks and high failure rates for users; it lacks a mobile application and has been involved in internal disputes and events such as being blocked by the UK's Financial Conduct Authority (FCA).
• According to Defillama's data, Bags has a market share of 11.6%, with a 7-day revenue of $3.95 million, surpassing Letsbonk, whose mobile application and social features significantly enhance user experience.
• Letsbonk relies on Raydium and BONK, once occupying 55.2% of the trading share, but overall lacks a mobile platform and revenue distribution mechanism.

The core of the competition lies in how Bags targets the weaknesses of Pump.fun. Although Pump.fun occupies a huge market share, its dominance comes with fatal flaws for creators. Furthermore, Pump.fun lacks a mobile application, which is precisely the strategic focus of Bags – attracting a user base that values community and fair economy through a mobile-first, socially native, and creator-friendly model.

Marketing Case: Bags purchased Dogwifhat for $800,000

In early 2025, according to Decrypt, Finn purchased Dogwifhat (a knitted hat worn by a dog) for 6.8 BTC (approximately $793,000). The funds came from the platform token "BuytheHat" (BTH) transaction fees, with some coming from personal funds.

After taking the hat, Finn changed the official Bags logo to a hat-wearing version, and immediately launched his plan: a $250,000 reward for the first Meme coin to break a market value of 10 million on the Bags platform, igniting the community's speculation and creative enthusiasm.

As expected, within 10 hours after the auction, the market value of BTH skyrocketed from $1.62 million to $6.37 million, almost quadrupling its increase, which validates the power of this method.

Through the combination of "hot events + financial incentives", Bags aims to create a growth flywheel: marketing attracts traffic, traffic generates transactions, transactions feed back to creators, and creators attract more users.

This set of tactics is essentially a microcosm of the Bags business model. The $NYAN token revenue flows to the creators of Rainbow Cat, while the creators of Trollface also earn rewards through a similar mechanism. Even if these creators have reservations about cryptocurrency, they cannot refuse the passive income of real money.

Risks and Challenges

The key issue with Bags is that front-end innovation is built on a non-transparent back-end. As a platform handling user funds, Bags lacks the most basic level of technical transparency—there is no white paper, technical documentation, or roadmap, and its smart contracts have not been audited by a third party, leaving users unable to verify the platform's security.

The lack of transparency may be a deliberate choice. In the world of Meme coins where "speed is life," audits and documentation can slow down iteration speed. Bags have chosen a high-risk strategy of "capturing the market first, then enhancing compliance," which can quickly gain market share but puts users at risk.

It is equally concerning that the operational model of Bags is similar to that of Pump.fun, of which 98.6% of the projects have been identified as fraudulent. This similarity raises serious doubts about the quality of the Bags platform projects. At the same time, the entire project value is highly dependent on the founder Finn; if Finn were to leave or encounter issues, the ecosystem could collapse instantly.

Despite the positive reviews for the interface design, the actual user experience is fraught with problems. Many users report severe performance lags and input delays, which are critical flaws for a platform that emphasizes trading speed. At the same time, some users claim they are unable to withdraw funds, and the groups are filled with spam and suspicious content. These issues not only affect the trading experience but also expose potential risks in the platform's content management and fund security, making it a breeding ground for malicious activities.

Written at the end: Future Outlook

The future of Bags may have three possibilities:

Optimistic scenario: Solve technical delays, release audit reports, become the preferred platform for Web2 creators to enter Web3, and establish a community-based moat.

Pessimistic scenario: Security vulnerabilities or regulatory crackdowns could destroy the platform's reputation, leading to catastrophic losses for users.

Scenario in between: Developing a sustainable niche market among specific user groups that value social interaction and storytelling.

The future of Bags may depend on whether it can find a balance between innovative features that attract users and the basic security that protects user assets.