Raydium, a prominent decentralized exchange (DEX) on the Solana blockchain, has announced the launch of LaunchLab, a token launchpad designed to compete with platforms like Pump.fun. LaunchLab is positioned as a Pump.fun-style platform, aiming to facilitate meme coin and token creation on Solana. It introduces features such as customizable bonding curves (linear, exponential, and logarithmic) to give creators more control over pricing and tokenomics, support for multiple quote tokens beyond just SOL, and integration with Raydium’s existing automated market maker (AMM) infrastructure.

This move comes as a strategic response to Pump.fun’s recent developments, particularly its launch of PumpSwap, a native DEX that reduces reliance on Raydium’s liquidity pools by offering fee-free token migrations and a creator revenue-sharing model. With LaunchLab, Raydium seeks to maintain its relevance in the Solana ecosystem and capture a share of the meme coin launch market. A bonding curve is a mathematical formula used in decentralized finance (DeFi) and token economics to determine the price of a token based on its supply. It creates a relationship between a token’s supply and its price, typically designed to incentivize early adopters and regulate token issuance in a predictable way.

Bonding curves are often used in token launchpads, like Raydium’s LaunchLab, to automate pricing during a token sale or creation process. As more tokens are minted or bought, the total supply increases, and the bonding curve dictates that the price per token rises. This rewards early participants who buy in when supply is low and prices are cheaper, while later buyers pay more as the token becomes scarcer or more popular. Bonding curves can take different forms, depending on the project’s goals: The price increases steadily with each token minted (e.g., price = supply × constant). Simple and predictable.

The price rises more sharply as supply grows (e.g., price = supply² × constant), making tokens increasingly expensive and favoring early buyers even more. The price increases more slowly as supply grows, keeping tokens relatively affordable for longer. In many systems, bonding curves also allow selling back tokens to the curve. When tokens are sold, the supply decreases, and the price drops according to the same curve, providing liquidity without needing a traditional market. Imagine a linear bonding curve where the price of a token is $0.01 per unit of supply: If 100 tokens exist, the next token costs $1.00. If 1,000 tokens exist, the next token costs $10.00. With an exponential curve, the price might jump to $100 at 1,000 tokens, depending on the formula.

Why Use Bonding Curves?

No need for manual pricing or order books; the curve sets the price dynamically. Early supporters get lower prices, while latecomers fund the project at higher rates. Tokens can be bought or sold directly through the curve, reducing reliance on external exchanges. Raydium’s LaunchLab, offering customizable bonding curves (linear, exponential, logarithmic) lets token creators tailor the pricing model to their project’s needs—whether they want a gradual rollout or a rapid price spike to build hype. It’s a powerful tool for meme coins and experimental tokens, aligning with the fast-paced, speculative nature of platforms like Pump.fun.

LaunchLab could drive more token launches on Solana, boosting network usage, transaction volume, and fees. This aligns with Solana’s reputation as a high-speed, low-cost blockchain, especially for meme coins and speculative projects. By rivaling Pump.fun, which has dominated Solana’s meme coin launch scene, LaunchLab might split the market. This could either fragment liquidity or push both platforms to innovate, benefiting users with better features and lower costs. Integrating LaunchLab with Raydium’s AMM gives it an edge, potentially reducing outflows to Pump.fun’s PumpSwap and keeping liquidity within Raydium’s ecosystem.

Integrating LaunchLab with Raydium’s AMM gives it an edge, potentially reducing outflows to Pump.fun’s PumpSwap and keeping liquidity within Raydium’s ecosystem. Customizable bonding curves (linear, exponential, logarithmic) and multiple quote tokens (beyond just SOL) give creators more control over pricing, tokenomics, and fundraising strategies. For example, an exponential curve could create rapid hype for a meme coin, while a linear curve might suit a more stable project.

A Pump.fun-style platform simplifies token creation, making it accessible to non-technical creators. This could flood Solana with new tokens, especially meme coins, amplifying the “casino” culture already prevalent in the ecosystem. If LaunchLab includes a revenue-sharing model (like Pump.fun’s), creators could earn from trading fees or token sales, incentivizing more projects to launch.

The SEC’s Crypto Task Force, led by Commissioner Hester Peirce, held its inaugural roundtable titled “How We Got Here and How We Get Out – Defining Security Status” at the SEC headquarters in Washington, D.C. During this event, Peirce expressed support for allowing non-fungible tokens (NFTs) to be used as a means of raising capital. This stance marks a significant shift in the SEC’s approach to NFTs, suggesting they could be exempted from traditional securities regulations under certain conditions. Peirce’s comments align with her broader goal of fostering a regulatory framework that provides clarity and encourages innovation in the crypto space, contrasting with the more enforcement-heavy approach of the previous administration.

The roundtable, part of a series aimed at engaging with the public and industry experts, reflects the Task Force’s efforts to redefine the regulatory treatment of digital assets, including exploring how NFTs could serve as a legitimate fundraising tool for crypto startups without being classified as securities. NFT (non-fungible token) regulations are a complex and evolving area, primarily because NFTs sit at the intersection of digital assets, intellectual property, and financial law. There’s no unified global framework for NFT regulation, so the rules depend heavily on jurisdiction, the nature of the NFT, and how it’s used.

In the U.S., the Securities and Exchange Commission (SEC) plays a key role in determining whether NFTs fall under securities laws. Historically, the SEC has applied the Howey Test to assess if an asset is a security: if it involves (1) an investment of money, (2) in a common enterprise, (3) with an expectation of profits, (4) derived from the efforts of others, it’s likely a security requiring registration or an exemption. Many NFTs—especially those tied to art, collectibles, or gaming—don’t meet this definition because they’re unique and not inherently investment vehicles. However, fractionalized NFTs (where ownership is split into tradable shares) or NFTs marketed with promises of future value increases have faced scrutiny as potential securities.

Commissioner Hester Peirce’s statement, during the SEC Crypto Task Force roundtable, signals a shift. She advocated for NFTs to be used to raise capital, suggesting they could be structured in ways that avoid securities classification—perhaps as utility tokens or crowdfunding tools—while still offering regulatory clarity. This isn’t law yet, but it hints at a future where NFTs might get a safe harbor, similar to what Peirce has proposed for other crypto assets. The SEC’s focus seems to be moving toward distinguishing between speculative investment NFTs and those with practical utility, like representing ownership of real-world assets or access to services.

The IRS treats NFTs as property, meaning sales trigger capital gains taxes. Creators may also owe income tax on initial sales or royalties. Platforms trading NFTs may need to comply with the Bank Secrecy Act if they’re deemed money transmitters, especially with high-value transactions. The U.S. Copyright Office has flagged that owning an NFT doesn’t automatically grant copyright to the underlying asset unless explicitly stated, leading to legal disputes over usage rights. The EU’s Markets in Crypto-Assets (MiCA) regulation, fully in effect by late 2024, covers some NFTs but excludes those deemed “unique and not fungible” from its scope.

This means one-off art NFTs are largely unregulated but fractionalized or mass-issued NFTs (like a series with financial perks) might be classified as crypto-assets, requiring issuers to publish whitepapers and comply with AML rules. The EU focuses on consumer protection and market integrity, so NFT platforms must also adhere to GDPR for user data and ensure transparency in transactions. The UK considers NFTs on a case-by-case basis. If they resemble investment products, they fall under the Financial Conduct Authority’s purview. Otherwise, they’re treated as digital collectibles with minimal regulation.

Countries like Japan view NFTs as virtual assets under the Payment Services Act, requiring exchanges to register, while China has banned crypto trading but allows NFTs on state-approved blockchains for cultural purposes, sans financial speculation. Are NFTs securities, commodities, or something else? This determines which agency (SEC, CFTC, etc.) has jurisdiction. Wash trading, rug pulls, and fake NFT projects have prompted calls for stricter oversight globally. NFTs are borderless, but regulations aren’t, creating enforcement gaps.

Looking Ahead

Peirce’s push to let NFTs raise capital could inspire a U.S. framework where NFTs are treated as tools for creators and startups, not just speculative assets. This might involve a tailored exemption from securities laws, coupled with AML and consumer protection requirements. Globally, expect more clarity as regulators catch up to NFT use cases—think real estate tokenization, music royalties, or gaming economies. For now, creators and buyers must navigate a patchwork of rules, often consulting legal experts to stay compliant.

The advance of technology in recent years has opened the door to casinos and iGaming sites. The Internet is more widely available, with mobile Internet speeds that rival those of fixed landline connections. Computers and laptops have become more affordable. So, too, have mobile devices, which have also become more capable.

This has led to a rise in iGaming websites with more advanced features which, in turn, has seen the popularity of online casinos and gambling websites increase, encouraging governments to have to consider their regulatory frameworks or be left behind. Similarly, casinos and gambling companies have had to transition their products online.

iGaming Sites

iGaming sites include online poker and bingo, as well as casino websites like tg casino, which are able to offer more games, improved bonuses, and better odds than retail casinos because of lower overheads. Many of these sites have also introduced new features, recently, that include live dealer games, VR gaming, and cryptocurrency payments. Mobile apps have made it easier for players to get online and have seen more people able to partake in online gambling which means government bodies have had to address existing regulatory frameworks.

Big Data

Big data isn’t a new innovation, but it plays a critical part in iGaming and other forms of betting. It can also be used by regulators to determine betting patterns and help identify areas where players might need support and protection.

It can also be used to forecast betting market size. One reason why a lot of countries are considering the introduction of iGaming legislation is to capture tax revenue from bets. Although not impossible, it is more difficult to capture tax levies from offshore casinos offering their services to players.

Michigan, in the US, is one of only 7 states that has regulated iGaming and it generated tax revenue of more than $350 million in 2023. Michigan is the 10^th most populous state, suggesting there is an opportunity for other states to raise similar funds.

AI

Big data combines especially well with the use of AI and machine learning. Using these technological tools, online casinos can use algorithms to set more accurate odds. They also use these tools to help create customized offers and bonuses for clients.

Improved Internet

Around two-thirds of the world has regular access to the Internet, with more than half of the global population having mobile Internet access. With the advent of 5G, mobile Internet connections have gotten better, and this has not only led to more people being able to access mobile casinos but it has seen the casinos themselves being able to offer more advanced games and developed features. Live dealer games have become increasingly commonplace. VR casinos have also started to hit the market. Standard games have become more advanced with crash games, which feature live betting, proving popular.

5G’s rollout continues to pick up pace, too, which means these features are only going to continue to increase in the coming years.

For regulators, the further reach of high-speed Internet means more and more people will use online casinos, rather than retail casinos and government bodies will need to react to this by introducing or updating iGaming legislation.

Mobile Convenience

Mobile casinos are incredibly convenient. Players can access games from home or anywhere else they have an Internet connection on their mobile device. This makes it possible to play while commuting, while on vacation, or even while on a break from work.

Responsible gambling regulations are required, and many governments have already introduced these. Some, like the UK government, have taken steps to further finetune their regulations.

Blockchain

Another area where we are seeing advances and development is in the integration of blockchain technology. A blockchain network is a digital ledger that stores transactions and can be used to initiate and complete smart contracts, which are automated agreements between two or more parties. Its best-known use is in cryptocurrency.

Cryptocurrency facilitates faster and less costly transactions, benefiting the player and the casino. It is also pseudonymous, making it more difficult for governments and agencies to track. Asset and financial regulators have been relatively slow out of the blocks, often relying on existing regulations that are closely tied to fiat currencies, rather than modern, digital currencies.

Further crypto regulations are incoming, and we can also expect to see crypto considerations in upcoming iGaming regulations.

Regulatory Changes

Some countries, like the UK, have embraced iGaming and introduced extensive regulatory frameworks. Other countries, like the US and Canada, are slowly catching up. Only seven states in the US and one territory in Canada currently has fully regulated online casinos, but this is expected to grow in the coming months and years.

Conclusion

iGaming has seen a lot of growth in recent years, but it still has huge potential for further expansion. The emergence of blockchain and cryptocurrency, the continued spread of 5G mobile Internet, and the continued improvement of online and digital technology means more and more casinos and casino apps will come online and regulators will need to introduce new legislation to counter this.