On July 12, Pump.fun, a meme coin launchpad on Solana, will conduct its first public token offering (ICO). This event is drawing attention due to high valuations and potential risks.
What is Pump.fun and Why Is It Gaining Popularity?
Founded in early 2024, Pump.fun allows anyone to create and launch their own meme coin in a matter of minutes. The platform quickly gained traction thanks to low barriers to entry and affordable fees on Solana. By January 2025, its revenues reached $7 million per day.
Tokenomics: $1.3 Billion and Over 40% Control by Team and Investors
The forthcoming token PUMP will have a total supply of 1 trillion tokens, translating to a $4 billion valuation at the sale stage. 33% of the tokens are allocated to the ICO, while over 40% are controlled by the team and investors, raising liquidity and potential exit concerns.
What to Watch Out for Before Investing?
Several factors could influence the success of this token. Investors should consider the revenue decline of Pump.fun and its diminished market position. Careful risk assessment regarding the token's potential, structure, and the team's ability to avoid liquidity traps is crucial.
The Pump.fun ICO is a significant case in today's cryptocurrency market, showcasing how projects leverage favorable conditions to unlock liquidity. Investors should exercise caution and approach decisions with diverse considerations.
