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Raydium’s native token, RAY, has plunged 25% following claims from an on-chain investigator that Pump.fun may be developing an automated market maker (AMM) protocol, potentially threatening a key revenue stream for the decentralized exchange (DEX).

The Solana-based DEX and AMM saw its token nosedive on Feb. 24 amid rumors that Pump.fun, a popular memecoin launchpad, is working on a competing AMM feature.

The speculation originated from the X account “trenchdiver,” which posted on Feb. 24 that Pump.fun was actively developing and testing its own AMM liquidity pools. This feature would enable users to trade crypto assets against liquidity in a smart contract rather than directly with a counterparty.

Supporting their claim, the account shared a link to a website displaying an AMM interface bearing Pump.fun’s branding, with a notice indicating that the feature is currently in beta.