Pump.fun
PUMP#37PUMP is the token of Pump.fun, a Solana platform for launching and trading memecoins.
- Market cap
- $2.62B
- Volume 24h
- $649.21M
- All-time high
- —
- Circulating supply
- 464.78B of 1T
Does not clear all 8 Shariah criteria. Needs caution: nature of the asset and excessive uncertainty (gharar). Fails: gambling (maysir), business model, usage, and benefit and harm (maslahah).
- 2 pass
- 2 caution
- 4 fail
Verdict history
- DoubtfulCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Pump.fun?8 Shariah criteria
2 pass · 2 caution · 4 failHolding PUMP pays no interest: there is no staking or payout, and Pump.fun uses part of its revenue to buy PUMP back and burn it.
Riba means interest or any guaranteed increase on a loan. PUMP pays its holders nothing directly. Pump.fun says the token gives no right to revenues and describes no staking. Instead, half of the platform's revenue is spent buying PUMP on the open market and burning it, which reduces supply; any benefit to holders comes through the market price, not a fixed or guaranteed return. Pump.fun's income is trading fees, not lending interest. It is not known how the platform holds its cash, including the proceeds of the 2025 token sale, but none of that is passed to holders as interest.
With no interest mechanism for holders, the criterion is at the maximum; Sharlife's non-compliant rating rests on the platform's memecoin business, assessed below, not on interest.
Pump.fun is a working, heavily used platform, but PUMP gives no rights and its only function is a buyback funded by platform revenue.
The platform behind PUMP is real and busy: more than 7 million tokens had been created on it by May 2025, and it earned about $460 million of revenue over the past year by DefiLlama's count. The token itself is thin. It gives no vote, no staking and no claim on revenue; Pump.fun describes it only as the protocol's native token, supported by discretionary buybacks and burns. So its value rests on the company choosing to keep buying it back. Official religious bodies also disagree on whether cryptocurrency is property (mal): some general fatwas deny it, others accept tokens with real utility.
PUMP's only mechanism is a buyback funded by fees from memecoin gambling, so holding it is a direct bet on that gambling activity.
Maysir means gambling or pure chance-based gain. PUMP is not itself a joke coin, but its only working mechanism is the buyback: half of Pump.fun's revenue buys PUMP and burns it, and that revenue comes mostly from people creating and trading memecoins, tokens without a function. A Solidus Labs report reported by CoinDesk in May 2025 classed 98.6% of tokens launched on Pump.fun as rug pulls or pump-and-dump schemes; Pump.fun disputed the method.
The token has no vote, staking or other use, so its value moves only with the volume of that memecoin betting, and holding it is a bet on the gambling activity continuing. Sharlife, the authoritative source for Pump.fun, rates it non-compliant and CryptoUmmah rates it haram; their concern with the memecoin character of the platform is reflected here as a fail at the top of the band, since the platform does provide a real service.
Almost all of Pump.fun's revenue comes from fees on launching and trading memecoins, which counts as gambling.
Pump.fun charges 1.25% on every bonding-curve trade (0.95% to the platform) plus a graduation fee, and a tiered protocol fee on PumpSwap, where graduated coins trade. Its own terms say memecoins are the coins commonly found on the platform, and a Solidus Labs report (May 2025, reported by CoinDesk) classed 98.6% of its tokens as rug pulls or pump-and-dump schemes. By DefiLlama's count about 68% of the past year's revenue came from the launchpad and about 26% from PumpSwap.
Memecoins without a function are gambling tokens, so fees from running this market count as income from gambling, well above the 5% limit. The platform also offers leveraged perpetual contracts through Hyperliquid. Half of this revenue funds PUMP buybacks. ShariaQuant sees trading fees as permissible service income; this assessment does not, because of what is traded. Sharlife, the authoritative source for Pump.fun, rates it non-compliant, and CryptoUmmah rates it haram, consistent with this finding.
Pump.fun publishes its fees and buybacks, but a single company controls the platform and buybacks, its code is not public, and a third of the supply went to the team and investors.
Gharar means excessive uncertainty in a deal. Some things are clear: the supply is fixed at 1 trillion, fees are published, and buybacks and burns can be checked on-chain. Much else is not. A single company, Baton Corporation, Ltd., runs the platform, and token holders have no vote; the buyback share is the company's policy, though since 28 April 2026 it says 50% of revenue is locked for a one-year burn cycle. No public code repository or whitepaper was found. The team got 20% of the supply and earlier investors 13%, and their unlock schedule was not confirmed from a primary source.
In May 2024 a former employee with privileged access drained about $1.9 million from the contracts.
PUMP has no use of its own beyond holding it for buybacks funded by memecoin trading fees.
PUMP cannot be staked, gives no vote and pays no fees on the platform. It is traded and held for exposure to Pump.fun's buybacks, which half of the platform's revenue funds. That revenue comes mainly from launching and trading memecoins, which counts as gambling, and the terms also offer leveraged perpetual contracts. So the token's practical purpose is a share in the value of a gambling-like market, which is an impermissible main purpose under this criterion.
Fully paid spot PUMP can be bought on major exchanges and held in one's own Solana wallet.
PUMP is a standard Solana token. It was sold on several major exchanges and trades there and on Solana exchanges for immediate, full settlement, and it can be moved to a self-custody wallet. So permissible ownership is technically available, and the criterion is at the maximum. Whether holding it is acceptable is a separate question, decided by the overall verdict.
The platform makes launching a token cheap and open, but a reputable report found almost all of its tokens were rug pulls or pump-and-dumps, and regulators and courts have raised concerns.
Maslahah means weighing benefit against harm. Pump.fun says it offers an open marketplace where anyone can launch a coin with equal access from the start. Against this, a Solidus Labs report reported by CoinDesk (May 2025) classed 98.6% of tokens launched there as rug pulls or pump-and-dump schemes, which Pump.fun disputed. The UK FCA warned in December 2024 that Pump.fun may be offering financial services without permission. US class actions allege that it runs an illegal digital casino, and on 31 August 2026, according to plaintiffs' counsel, a judge let racketeering claims proceed.
These are allegations, not findings. On the evidence available, harm to retail users appears to outweigh the benefit.
How you can use it
Tap a card for the ruling and sourcesPUMP can be bought spot with full payment on major exchanges and held in a Solana wallet. Spot is acceptable for a DOUBTFUL asset only for those who follow the permissive view; PUMP sits near the HARAM line, its value comes from memecoin trading, and Sharlife rates Pump.fun non-compliant.
Not available: no exchange-traded fund holding PUMP was found. A fund holding it would be judged like spot, and its structure (interest income, lending of the tokens) would need checking.
PUMP is not used as a payment coin. Tier-1 bodies such as Indonesia's MUI hold that using cryptocurrency as currency is not permissible.
PUMP has no native staking: Pump.fun describes no staking or governance function. Third-party staking or earn products for PUMP get their return from somewhere else, usually lending, and must be checked; lending-based ones fail.
Margin trading in PUMP is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
Futures, perpetuals and options on PUMP always fail under AAOIFI SS 20: deferred exchange without delivery, usually with leverage. Pump.fun itself also offers perpetual contracts through Hyperliquid.
Lending PUMP on any platform for a fixed or guaranteed return is riba. Pump.fun itself does not offer PUMP lending.
No native yield exists. Any yield product on PUMP from lending or trading strategies pays interest or interest-like returns and fails.
Scholars quotes
Penggunaan cryptocurrency sebagai mata uang hukumnya haram, karena mengandung gharar (ketidakjelasan), dharar (bahaya) dan bertentangan dengan Undang-Undang nomor 7 tahun 2011 tentang Mata Uang dan Peraturan Bank Indonesia nomor 17 tahun 2015 tentang Kewajiban Penggunaan Rupiah di Wilayah Negara Kesatuan Republik Indonesia.Sebagaimana mata wang yang lain, mata wang digital hendaklah tidak digunakan sebagai bayaran kepada barangan, perkhidmatan dan aktiviti tidak patuh Syariah seperti pembelian dadah, pelacuran, perjudian dan pendanaan aktiviti keganasan serta penggubahan wang haram.The SAC has also resolved that investment and trading of Digital Assets that fulfil the above requirements and which are traded on Digital Asset Exchange (DAX) registered with SC are permissible.Third: In light of the above and given the significant risks associated with this type of currencies and the instability of their transactions, the Council of the Academy recommends pursuing research and studies on issues affecting its ruling.Bitcoin is a digital currency that does not meet the legal and Sharia criteria that make it a currency subject to the rulings of dealing with official legal currencies recognized internationally.بناءً على ذلك: فلا يجوز شرعًا تداول عملة "البتكوين" والتعامل من خلالها بالبيعِ والشراءِ والإجارةِ وغيرها، بل يُمنع من الاشتراكِ فيها؛ لعدمِ اعتبارِها كوسيطٍ مقبولٍ للتبادلِ من الجهاتِ المخُتصَّةِ، ولِمَا تشتمل عليه من الضررِ الناشئ عن الغررِ والجهالةِ والغشِّ في مَصْرِفها ومِعْيارها وقِيمتها، فضلًا عما تؤدي إليه ممارستُها من مخاطرَ عاليةٍ على الأفراد والدول.Ultimately, simply buying and holding $PUMP is rated Doubtful because, while the protocol generates permissible revenue from trading and migration fees without interest or gambling mechanics, critical data regarding its exposure to haram industries could not be established.According to research and opinion of experts so far, cryptocurrency is not considered ‘ maal ’ (wealth) in Sharia.Muhammadiyah memandang transaksi dan investasi kripto pada dasarnya mubah (boleh) tetapi dengan syarat tertentu.The opinion on this is the same as doing the same with any halal assets such as shares – 1) is permissible, 2) is more debatable and there are differing opinions on short-term trading.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itThis speculative trading resembles Maisir (gambling), prohibited in Islam, as it involves high risk and uncertainty without guaranteed returns.As I mentioned at the beginning of this article it is not necessary to substantiate the permissibility of something as long as there are no prohibited factors involved in it or surrounding it.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
Section in preparation
Similar halal assets
Halal verdict, same category
