Raydium’s RAY ($3.26) token plummeted Sunday amid speculation that meme coin launchpad Pump.fun is preparing to launch its own automated market-making system.
RAY has dropped 22% over the past 24 hours to $3.28 and is down a further 5% over the past hour, according to data from GeckoTerminal.
Pump.fun has yet to respond to Decrypt’s request for comment. Raydium’s representatives have not publicly addressed the situation nor returned requests for comment.
The sharp decline follows the discovery of an apparent test version of an AMM ($0.02) that could redirect significant trading volume away from Raydium’s platform.
“Raydium has benefited significantly from Pump.fun, as graduated tokens have historically migrated to its AMM, where it charges a 0.25% fee on swaps,” Min Jung, an analyst at Presto Research, told Decrypt.
An automated market maker (AMM) is a system that uses algorithms and liquidity pools to automatically set asset prices based on supply and demand, replacing traditional order books.
Users deposit funds into shared pools, and prices adjust algorithmically using formulas to maintain balance, enabling continuous trading without intermediaries.
Based on Decrypt’s int…
