Pump.fun has introduced Pump Fund, a $3 million investment initiative aimed at supporting early-stage projects through a 30-day hackathon. The program will finance 12 projects with $250,000 each at a $10 million valuation, focusing on live token launches and real-time market traction. This approach shifts away from traditional venture capital selection, emphasizing community participation and organic traction over founder reputation. The hackathon, which concludes on February 18, requires teams to hold at least 10% of their token supply and provide regular updates. Pump.fun's move comes as trading activity on its platform has declined, with monthly volumes dropping from $11.75 billion in January 2025 to $2.43 billion in December. The initiative aims to revitalize interest by linking capital allocation to user engagement and market activity. Despite the innovative approach, analysts have raised concerns about governance and the potential for manipulation during the hackathon. They emphasize the need for clear rules and mechanisms to ensure genuine user engagement and prevent automated traffic. Pump.fun's launch of this investment arm follows a challenging period, including a class action complaint alleging illegal securities exchange activities.