jakiro
Jessy, bitchain vision
On July 12, Pump fun’s token Pump will be sold publicly.This public sale is a cooperation with many second-tier companies such as Kucoin, Bitget, MEXC, etc.
The total issuance of PUMP is 1 trillion, and the ICO issuance is 33%, and the issuance price is 0.004U.Among them, US$600 million was publicly raised on the exchange, and US$700 million in tokens were sold to institutions through private equity.
The release of the token just happened to catch up with the improvement of the market. Bitcoin broke through a new high again, and the overall liquidity in the currency circle slowly recovered.Regarding the issuance of Pump.fun, most people in the industry are not optimistic about it, because with the decline of the Meme market, Pump.fun’s income has also dropped significantly. The issuance of the coin is also considered to be another harvesting behavior as the market liquidity recovers.
Jocy, founding partner of IOSG, posted on social media that this Pump.fun public offering is more like using participants as exit liquidity, and is a highly speculative gambling.
For retail investors, is PUMP token worth buying?
33% ICO, the team holds nearly 40% of the coins
The maximum supply of PUMP tokens is 1 trillion, and 33% of the allocation ratio is used for ICO (18% private placement + 15% public placement), 24% for the community and ecology, 20% for the team, 13% for existing investors, etc.The prices of private and public offerings are the same as 0.004U, and the tokens issued by the ICO were completely unlocked on the first day of trading on July 12, while the lock-in period of the team and investor tokens is unknown.US and UK residents are unable to participate in this ICO.
The token allocation plan has also been widely criticized in the community. Cryptocurrency researcher Rex bluntly stated that his token economics is “exploitative”.He noted that the team allocated more than 40% of the token supply (20% of the team + 13% of existing investors + 2% of foundation + 2.4% of ecosystem funds ≈ 37.4%, plus possible control of some community/eco-funds) to itself and the parties involved, while the platform’s revenue of more than $750 million in the past year has largely relied on the contribution of the community.
Moreover, the unlocking rules seem to be untransparent for community members. Public and private tokens that account for 33% of the total are fully unlocked on the first day, but the token lock-up clauses of the team and investors are not disclosed, which poses a risk of “internal arbitrage” – using retail funds to support the market and sell them.
Jocy, founding partner of IOSG, said he believes that the Pump.fun team has neither the will nor the ability to “pull the disk” or “control the disk”.They have already gained huge wealth through handling fees, and this ICO is more like the final “Exit Liquidity”.
The project has no technical barriers and its market share has been overtaken
The Pump.fun team has indeed made a lot of money by relying on handling fees.
This Meme launch platform on the Solana chain was established in 2024. According to DeFiLlama data, the peak of its transaction volume and revenue occurred in January 2025.At present, both transaction volume and handling fees have dropped sharply.According to a post by IOSG Ventures founding partner on X, Pump.fun’s daily income has also plummeted more than 92% in recent days, falling to about $500,000 after daily income peaked at more than $7 million on January 23, 2025.
Since its establishment in January 2024, its earnings in each quarter are as follows:
With the temporary shutdown of Meme’s narrative, Pump.fun is also seeking transformation. The team recently disclosed two strategic adjustments, expanding the current team of less than 20 people to 70 people, covering professional fields such as engineering, compliance, and legal affairs. It is testing its own AMMs to try to build a transaction closed loop.
The above behaviors also confirm that the Pump.fun team also found that as a Meme launch platform, it actually has no technical moat.Its market share has been surpassed by LetsBonk, another platform on Solana.
As can be seen from all the above, Pump.fun is not a unicorn of Meme launch platform. It is also easy to replace without technology.
Although Bitcoin has broken through a new high at the moment, it has indeed brought about a new short-term liquidity spillover effect, Meme will also have a phased recovery.However, Pump.fun has too many “issuing coins means returning to zero” projects, and in fact, user stickiness is extremely poor.In addition, compared with users’ impression that their founding team has made a lot of money, the market may not buy it for PUMP tokens.
Its token institutions are also unfriendly to retail investors, the project is not low in valuation, and Meme’s popularity is difficult to return to its peak, etc., which are all proof that the project may not have long-term investment value.
