Pump.fun the controversy caused by the high valuation of the coin, and the market questioned that its monopoly advantage was no longer there

1. Pump was valued at 4 billion coins

on July 9 Pump.fun officially announced the launch of the platform token PUMP. The maximum supply of PUMP is 1 trillion, and according to official disclosures, 33% of the tokens will be used for initial coin offerings. The private and public tokens are priced at $0.004 per token, with an overall valuation of $4 billion and will be released in the initial coin offering. This means that there is at least a potential selling pressure of up to $1.32 billion after PUMP opens. As of July 11, it was trading at about $0.0051 on Hyperliquid and Binance pre-market, representing a premium of about 22% to the fundraising price.

The moment Pump.fun announced the issuance of coins, it added pressure to the already tense on-chain emotions. At present, the market is facing a liquidity crunch and sentiment downturn, and Pump.fun, as the leader of the MEME launch platform, its daily revenue and user activity have declined significantly compared to the peak, and its market share has been gradually eroded by new competitors. Against this backdrop, its high-valuation public offering is widely considered to have structural problems: the token has no real value, there is a lot of selling pressure in the early stage, the team unlocks the plan lacks transparency, and it is significantly overdrawn during the altcoin downward cycle. In addition, due to the fact that the Pump.fun team's previous behavior of selling off the fee income obtained instead of covering the community has led to many concerns, this round of high-valuation fundraising is more like an exit liquidity operation than a long-term development plan of the project, and the team lacks the motivation and ability to continue to support the market.

Since its launch in January 2024, Pump.fun has accumulated nearly $670 million in revenue, with a peak of nearly $7 million in single-day fees. This once allowed it to monopolize the hegemony of the Solana ecological MEME token launch platform. However, just as PUMP was about to be released, competitors letsbonk.fun rise strongly. letsbonk.fun overtook the former's monopoly of 40.9% with 15,600 token issuances of more than Pump.fun of 11,500 tokens, with a market share of 49.8%, the first time since January 2024 that Pump.fun has been surpassed by rivals in Solana MEME market share. Although Pump.fun subsequently returned to the first position in the market, this experience of being surpassed has raised questions about its monopoly position in the market, and also shows that it may be replaced by other platforms in the short term.

Data source: Dune

II

• 33% will be sold in the ICO

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• 24% will be allocated to the community and ecosystem program

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• and 20% will be allocated to the team

• 2.4% for Ecosystem Funds

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• 2% for Foundations

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• 13% for Existing Investors

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• 3% for Live Streaming

• and 2.6% for Liquidity + Exchanges

PUMP Token InformationPUMP

Token Sale:

33% of the total supply raised by the token offering. Private placements accounted for 18% (private placements for institutions) and public offerings accounted for 15% (public offerings on 6 centralized exchanges). The price of the two rounds of fundraising is $0.004 per token, with a total valuation of $4 billion, and all tokens will be fully unlocked on the first day of listing.

Schedule:

• Start Time: July 12, 2025 (Sat) 14:00 UTC

• End Time: July 15, 2025 (Tue) 14:00 UTC or tokens sold out, whichever comes first

• Token distribution: Distributed within 48–72 hours after the end of the sale, and can be freely transferred within 48–72 hours after distribution

Participation Requirements:

• Must complete KYC real-name verification

• Residents of the United States, the United Kingdom, and other restricted jurisdictions are prohibited from participating in

the use of PUMP tokens:

• $PUMP is a pump.fun platform token, and its sole purpose is to promote the pump.fun platform, and it does not have the right to share equity, income rights, voting rights, platform fees, etc.

• Token sale proceeds are used for the platform's operational reserves or to pay service provider fees.

Information source: Pump.fun

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Note: July 10, the last 24 hours data source: Jupiter

In terms of market share and trading activity Pump.fun it still maintains its leading position, but due to the rapid rise of competitors such as letsbonk.fun, Pump.fun's market dominance is being eroded. In addition, at the level of core competitiveness of the token economic model, the Pump.fun's platform token PUMP has obvious defects. The official made it clear that the only use of PUMP is for the promotion and dissemination of the platform, and the token does not have any economic rights and interests - including but not limited to platform ownership, profit sharing, governance rights or fee returns, etc., which makes its intrinsic value base close to zero, and is basically a "pure narrative" token. Tokens that lack value support are difficult to incentivize long-term holding, and also weaken the interest binding relationship between users and the platform.

In contrast, competitor letsbonk.fun has more structural advantages in the design of the token mechanism. Although its BONK token also does not give holders equity to the platform, it has built a strong value support logic by introducing the economic cycle and deflation model: the platform will use 35% of the 1% handling fee for each transaction to repurchase and burn BONK, and at the same time inject 30% into the liquidity pool of BONK to form an automatic market-making mechanism and improve the depth of liquidity. This dual mechanism of deflation and liquidity effectively enhances the holding attractiveness and price support ability of BONK tokens. In addition, in terms of governance and community participation mechanisms, other platforms are also building a more complete closed-loop of token value. For example, JUP, the official token of Jupiter Studio, not only has the function of community governance, but also supports staking to obtain platform incentives, forming a certain degree of "governance-income" linkage. Compared with the "empty shell attributes" of PUMP, the mechanism of JUP and BONK is more competitive in the long term in empowering users and building platform consensus.

4. SummaryIn

the context of the sluggish copycat market environment and the recent poor performance of the Pump.fun itself, its platform token issuance plan is destined to be subject to market attention and controversy. At present, the main risks of PUMP token are as follows:

First, although it has occupied the leading position in the track for a long time, its market share has been surpassed by competing products letsbonk.fun many times recently. Against the backdrop of intensifying market competition, Pump.fun still chose to issue platform tokens at a valuation of up to US$4 billion, which is significantly higher than that of its competitor BONK (US$2 billion), which raises questions about the rationality of its pricing.

Second, PUMP's token model has obvious flaws: it does not have any basic economic rights such as governance rights, revenue sharing or fee return mechanisms, and only relies on the brand narrative to support its value, which leads to a lack of coin holding incentives in the medium to long term. Therefore, PUMP is more like a "pure narrative" token, and the market generally believes that its issuance intention is more inclined to the team's cash-out exit rather than promoting the long-term construction of the platform.

Third, at the macro market level, although Bitcoin has recently hit a new high, driving the overall risk appetite to rebound, the altcoin market is still in a tight state of liquidity, as of July 11, according to CMC data, the market value of altcoins returned to 1.3 trillion in May this year, and there is no structural change in the current market (data source: CMC）。 Therefore, users still maintain a cautious attitude towards tokens with high valuations and high selling pressure. In the absence of sufficient narrative space and financial relay, PUMP faces a high risk of breakage;

Fourth, Pump.fun the amount of the public offering is as high as US$600 million, far exceeding the industry norm, and the vast majority of potential buyers are expected to subscribe directly through the primary market, resulting in a serious shortage of buying in the secondary market. At the same time, 33% of the token will be unlocked to primary financiers (about $1.32 billion) at the opening, and the sell-off by early investors after the opening will further exacerbate short-term price pressure and liquidity risks in the absence of sustained relay funds in the market.

Overall, Pump.fun Although this round of coin issuance has continued its brand influence, its structure of high valuation and high selling pressure is easy to amplify the uncertainty of the market under the multiple pressures of increasingly fierce market competition, lack of support for token mechanism, and conservative capital sentiment. The future performance of PUMP will largely depend on whether the project team can build a more sustainable token value system in a timely manner after the secondary market pressure is released, and re-strengthen its market dominance and user confidence through product innovation or ecological integration.

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