Pump.Fun is a platform that allows anyone to create and launch memokines, and concluded on Saturday one of the biggest and fastest initial coin products (ICOs). Within 12 minutes of the ICO’s release, the platform raised $600 million with 15% of its token supply being sold for $0.0040 each.
According to the platform, the ICO, which ended much faster than the 72 hours allocated, brought the platform’s fully diluted valuation to $4 billion.
Over the next 48-72 hours, all 150 billion pump tokens will be transferred to investors. However, according to ICO Drops data, the tokens are non-tradable and cannot be moved until the platform completes its distribution phase by July 15th.
Pump tokens were sold in a variety of central exchanges, including GATE, Kraken and Kucoin, with cumulative investments worth $5 million, $30 million and $16.5 million each.
Bybit has announced that pump sales have been oversubscribed due to unexpected delays in the Application Programming Interface (API). The exchange said it is checking the final allocation of users whose funds are frozen. For users who do not receive the allocation, BYBit said they will refund all funds.
Investors from the US and UK were banned from participating in ICOs for regulatory reasons. Today’s ICO push pump, according to Bloomberg.
About all pump tokens
The platform describes the pump token as “a utility coin used with the pump behind the pump, the Hung brand.”
Pump token owners may choose to participate in promotional giveaways. However, Pump.Fun makes it clear that its protocol is not permitted and does not require the use of pump tokens.
The maximum supply of pump tokens is at a limit of 1 trillion, of which 33% or 330 billion tokens have been allocated to ICOs. The platform says that out of 33%, 180 billion or 180 billion tokens, it was sold to institutional investors at private sales. The remaining 15% was sold to keep investors during today’s ICO.
Data Pump.Fun shows that only 12.5% of the token supply is sold for a total of $500 million. However, Alon Cohen, co-founder of Pump.Fun, told Bloomberg that 15% of pump supply is all sold at today’s ICO, according to previously announced plans.
Community Response
Despite the undeniable success of Pump.Fun’s ICO, the Crypto community is divided into its merits. This is especially facing Pump.Fun’s growing competition with Letsbonk and a decline in revenue. According to data from Dune Analytics, Letsbonk, a Solana-based Memecoin Launchpad, has recorded more volumes than Pump.fun.
Noting that he is not an investor, Haseeb Qureshi, managing partner at venture capital firm Doranfly, said:
“As $Pump has earned 25% of the pump’s revenue, if it exceeds one of the largest ICOs to date, this will be one of the highest total revenue tokens in crypto.”
However, others aren’t too excited about the ICO. For example, Jeremie Henicz, head of Xborg AI, responded to Qureshi and asked if he was the only person to find “Cringe.” Similarly, Marty Bent, founder of Truth for the Commoner (TFTC), said:
“Pump.Fun and the people who support it (even if it’s arm length) are pipers who ruin the Gen Z.”
Even in front of ICOs, many have criticised the platform’s talk nemics. For example, Crypto Researcher Rex calls platform talk nemics exploitative, with Pump.fun itself being assigned nearly 40% of the tokens.
