The memecoin platform Pump.fun attracted the attention of crypto investors during its ICO despite a sharp decline in revenues. Let's examine the reasons for its popularity and the project's criticism.
Memecoin and ICO: The Pump.fun Phenomenon
Pump.fun, based on Solana, has established itself as a major player in the memecoin boom, marked not only by rapidly growing tokens but also by high investment risks. After reaching a peak revenue of $7 million, the platform's income dropped by 92%. While the crypto community sees ICOs as a potential boom, many compare it to the numerous worthless altcoins of 2017.
ICO Structure and the $PUMP Token Plan
The $PUMP ICO represented a sale of 1 trillion tokens with allocations: 33% for the ICO, 24% for community initiatives, and 20% for the team. About 18% of tokens were already sold in a private sale for $0.004, leaving only 15% for public sale, creating high demand among investors.
Controversies and Challenges in the Pump.fun World
While Pump.fun seeks to streamline user experience, dissatisfaction is growing in the crypto community regarding the lack of airdrops and transparency around token listings. Some users noted that strange and even alarming events occurred on the platform, raising questions about the project's long-term viability.
The launch of the $PUMP token and its structure raise a number of questions about the future of Pump.fun. Will this be a new phase or just a short-lived spike in interest in memecoins?
