Raydium, the largest decentralized exchange on Solana, has announced the launch of LaunchLab for token creation, intensifying competition with Pump.fun.
What is LaunchLab?
LaunchLab enables users to easily launch tokens that integrate with Raydium’s liquidity pools. It also allows third parties to set custom transaction fees, potentially attracting new developers and creators to the Raydium ecosystem.
Market Reaction to the Launch
The launch has sparked strong market reactions, with Raydium's native cryptocurrency RAY increasing by 8% in the past 24 hours.
Competition with Pump.fun
The launch of LaunchLab comes amid intensifying competition with Pump.fun, which launched its own decentralized exchange, PumpSwap, in March, reducing its dependency on Raydium. PumpSwap achieved $2.5 billion in trading volume in 10 days, while LaunchLab aims to introduce a mechanism that allocates 25% of transaction fees to buying back RAY, potentially creating deflationary pressure on the token.
The launch of LaunchLab marks an important step in the competition between Raydium and Pump.fun, suggesting new opportunities for token users and developers on the Raydium platform.
