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Pump.fun Kicks Off $600M PUMP Token Sale
Pump.fun has officially launched its $600M PUMP token sale, marking a bold leap from memecoin playground to major crypto contender. Backed by top exchanges and sky-high trading hype, the ICO is stirring both excitement and skepticism.
TL;DR
- Pump.fun launches $600M ICO for PUMP token at $0.004
- Futures markets value PUMP 30 percent above ICO price
- Critics call it a liquidity extraction engine targeting retail
- Trading volume down 75 percent since January peak
- LetsBonk.fun emerges as a strong competitor in daily activity
- Concerns over sudden token launch and $4B valuation
- Community split between recognizing success and fearing exploitation
- Major exchanges support launch but long-term value is unclear
About the Pump.fun ICO
Sale Dates: July 12, 2025, 14:00 UTC — July 15, 2025, 14:00 UTC (or until all tokens are sold)
Total Raise: $600,000,000
Token Price: $0.004 per 1 PUMP
Total Supply: 330,000,000,000 PUMP
Terms
- Participants from the US and UK are not allowed
- KYC is mandatory (can be completed on Bybit, Kraken, Bitget, MEXC, KuCoin, Gate.io, etc.)
- Tokens are non-transferable/non-tradable until unlocked
- Unlocking: 48–72 hours after the end of the sale
How to participate
- Complete KYC on Pump.fun or participating platforms (Bybit, etc.)
- Fund your wallet in advance
- Be ready to purchase on July 12 at 14:00 UTC
PUMP Token Allocation
- ICO – 33%
- Team – 20%
- Investors – 13%
- Community/Ecosystem – 24%
- Other – ~10%
At the time of writing, futures markets priced the token 30% higher than the upcoming ICO price. In just the first 24 hours, futures trading volume exceeded $30 million, with open interest rising to $17 million, and Binance announced the listing of PUMP perpetuals with leverage starting July 10. This hype indicates speculative demand: many traders are taking early positions ahead of the ICO, expecting a price surge.
On the other hand, such a high valuation ($4 billion FDV) places PUMP among the top 50 crypto assets by market cap, creating a steep barrier for further growth.
Platform Overview and Achievements
Pump.fun launched in January 2024 as a meme token launchpad on Solana. The service allowed anyone to launch tokens in a single click, and by January 2025, over 6 million coins had been created on the platform. It experienced explosive growth during the Solana “memecoin boom” and was considered one of the fastest-growing crypto applications by some metrics.
With a 1% fee on every transaction, Pump.fun earned approximately $60 million in fees in H1 2024, and over $250 million by the end of the year. By mid-2025, cumulative revenue exceeded $600–700 million, making Pump.fun one of the most profitable Solana startups. The team claims the project reached $100M, $300M, and $500M in volume faster than any other in history.
The infographic compares Pump.fun to key competitors using two metrics:
- Fully Diluted Valuation (FDV) — potential market cap
- Monthly Revenue — income over the last 30 days
Community and Expert Criticism
Accusations of Speculation
A common criticism is that Pump.fun has turned into a "liquidity extraction machine" targeting retail traders.
“Pump.fun is the perfect machine for draining money: retail loses on useless tokens while Pump.fun earns fees on every trade. Brilliant as a business, but damaging to the ecosystem.”
Data shows that about 60% of addresses on Pump.fun are in the red, and over 1,700 wallets lost more than $100K. Only a few saw meaningful gains, while the platform itself emerged as the main beneficiary.
Concerns Over Team “Cash Out”
Skeptics note that the Pump.fun team previously denied plans for a token launch (a co-founder called such rumors false in February 2025), but abruptly changed course and is now aiming to raise a record amount. This raised questions about transparency and the founders’ motives.
There’s growing discussion around declining platform activity—yet the ICO is happening now, as if the creators are trying to “milk the brand” while Pump.fun is still at its peak.
Indeed, Dune Analytics data shows that trading volumes on Pump.fun have already dropped ~75% from the January 2025 peak.
Furthermore, a strong competitor has emerged: LetsBonk.fun, which now accounts for up to 75% of daily Solana memecoin activity and has even surpassed Pump.fun in daily revenue (~$1 million). Against this backdrop, Pump.fun’s plans to raise another $600M–$1B from the “memecoin economy” have drawn backlash.
A popular Solana influencer, Bonk Guy, dubbed it “the great extraction,” implying that developers are siphoning off community funds without adequate return.
Regulatory and Reputational Risks
Pump.fun has a controversial reputation due to the high number of scam projects. Research shows that up to 98% of tokens launched on the platform showed signs of fraud or rug pulls, with only ~1.4% exhibiting real liquidity and legitimacy.
On Reddit, one can find comments stating that Pump.fun “encourages more scams than anything else in the space.”
Taken together—content controversies, regulatory issues with FCA/SEC, and a flood of scam tokens—the platform faces serious reputational and legal risks. Some analysts warn that the euphoria around PUMP may quickly turn into a selloff: for instance, it’s been noted that liquidity flowing into the PUMP ICO may temporarily suppress the Solana price, followed by outflows from PUMP itself if investor sentiment sours.
Community and Expert Support
Despite the criticisms, users recognize that Pump.fun has successfully delivered its product and managed to attract and retain a massive trader audience. Solana bulls hope that this high-profile ICO will reignite interest in the Solana ecosystem and spark a new wave of memecoin enthusiasm. It’s part of a wider trend—ICOs are back in 2025, driven by market momentum, retail demand, and next-gen platforms.
Some insiders describe PUMP as a chance to “tokenize” the platform’s loyal user base, which could theoretically energize the Pump.fun community and stimulate further growth.
Co-founder Alon Cohen stated on ICO announcement day that returning to the ICO model is a way to widely and fairly distribute tokens to those who believe in the project and are ready to “play big.”
The team positions PUMP as a core element in their ambitious plan to create a decentralized alternative to TikTok, Twitch, and Facebook. According to them, ICO funds will go toward team expansion, social feature development, and improving the user experience to “outdo legacy social networks.” However, an open question remains—why weren’t the previously raised $600 million enough for these initiatives?
Investor Risk-Reward Outlook
From a financial standpoint, participating in the PUMP ICO presents a medium-return, high-risk proposition. A quick profit scenario seems plausible: current hype suggests that the post-listing price may shoot up above the ICO price. Major exchanges (Binance, Bybit, Kraken, KuCoin etc.) are supporting the launch, ensuring liquidity and broad exposure. This level of attention often correlates with short-term price rallies, especially given the short 3-day sale window.
However, long-term prospects for PUMP remain uncertain. Many analysts consider the $4 billion valuation overblown, especially as Pump.fun’s dominance is waning (the majority of new meme tokens now launch via competitors). Warnings are already surfacing that Pump.fun is extracting the last bits of capital from the space without delivering equivalent value in return.
Pump.fun’s Image in the Community Is Polarizing
While its innovative nature is acknowledged, the platform is often blamed for encouraging scams and wiping out newcomers. If the negative sentiment grows—such as due to major failures or frauds tied to PUMP—trust in the token could plummet.
Investors considering the ICO must realize they are effectively betting on a highly volatile memecoin ecosystem with a scandal-prone history.
Investing in PUMP only makes sense for those who fully understand the speculative nature of the venture and are prepared for significant volatility—ranging from quick multiples to potential large-scale losses.