Pump issuance platform Token PUMP, valued at $4 billion, sparks market controversy

Recently, the well-known MEME token launch platform in the Solana ecosystem, Pump.fun, announced the launch of its platform token PUMP, which has attracted widespread attention in the market. The maximum supply of PUMP tokens is 1 trillion, of which 33% will be used for the initial token issuance fundraising. The private sale and public sale tokens are uniformly priced at $0.004 per token, with an overall valuation reaching $4 billion. It is worth noting that these tokens will all be released at the time of the initial issuance, with potential selling pressure reaching $1.32 billion.

The background of Pump.fun's decision to issue coins is complex. The current market is facing liquidity tightening and low sentiment, and as a leading MEME launch platform, Pump.fun's daily income and user activity have significantly declined compared to peak periods, with its market share gradually being eroded by new competitors. In this context, its high valuation public offering is generally considered to have structural issues: the Token lacks actual value, there is significant selling pressure in the early stages, the team's unlocking plan is not transparent enough, and it has clearly overdrawn its valuation during the downcycle of altcoins.

Since its launch in January 2024, Pump.fun has accumulated nearly $670 million in revenue, with a single-day transaction fee peak close to $7 million. However, just as the PUMP is about to be issued, the competitor letsbonk.fun has risen strongly. letsbonk.fun has surpassed Pump.fun with 15,600 Token issuances compared to Pump.fun's 11,500, achieving a market share that once reached 49.8%, exceeding Pump.fun's 40.9%. This marks the first time since January 2024 that Pump.fun has been surpassed by a competitor in the Solana MEME market share, raising questions about its monopoly position.

The allocation plan for the PUMP Token is as follows:

• 33% for initial Token issuance
• 24% allocated to community and ecosystem plans
• 20% allocated to the team
• 2.4% for ecosystem fund
• 2% for the foundation
• 13% for existing investors
• 3% allocated to live broadcast
• 2.6% for liquidity and exchange

PUMP Token sale details:

• 33% of the total supply for Token issuance
• Private placement accounts for 18%, public offering accounts for 15%
• The price for both rounds of fundraising is $0.004 per coin.
• Total valuation of 4 billion dollars
• All tokens will be fully unlocked on the first day of issuance.

Schedule:

• Start: July 12, 2025 UTC 14:00
• End: July 15, 2025, 14:00 UTC or until the Token is sold out
• Token issuance: within 48-72 hours after the sale ends
• Free transfer: within 48-72 hours after issuance

Participation requirements:

• You must complete KYC real-name authentication.
• Residents in some areas are prohibited from participating.

PUMP Token用途：

• Only for promoting the pump.fun platform
• Does not possess rights such as equity, profit rights, voting rights, platform fee sharing, etc.

Token sale proceeds usage:

• For platform operation reserves or to pay service provider fees

Competitive analysis shows that Pump.fun currently maintains a leading position in the market, but its advantage is being eroded. The PUMP Token economic model has obvious flaws. The official statement indicates that PUMP is only used for platform promotion and does not possess any economic rights, which brings its intrinsic value basis close to zero. In contrast, the competitor letsbonk.fun's BONK Token has built a strong value support logic by introducing an economic cycle and deflationary model.

The main risks faced by Pump.fun in this issuance include:

1. High valuation raises market doubts
2. The token model lacks basic economic rights
3. The overall liquidity of the altcoin market is relatively tight.
4. The scale of the public offering is too large, and there is insufficient buying in the secondary market.

Overall, while Pump.fun's current issuance of coins continues its brand influence, under multiple pressures, its high valuation and high selling pressure structure can easily amplify market uncertainty. The future performance of PUMP will depend on whether the project team can timely construct a more sustainable Token value system and reinforce its market dominance and user confidence through product innovation or ecological integration.

Risk Warning: The information provided in this article is for reference only and does not constitute any investment advice. Cryptocurrency investment is highly speculative and carries significant loss risks; investors should carefully assess their personal risk tolerance.