Pump.fun, a popular meme coin platform in the Solana ecosystem, is considering distributing protocol revenue to the upcoming PUMP Token holders through a "buyback mechanism" and plans to launch an Initial Coin Offering (ICO) in the coming weeks, with an estimated valuation of $4 billion.
Table of Contents
ToggleToken Imminent Launch, Revenue Buyback Plan Surfaces
According to two sources familiar with the matter, Pump.fun is internally discussing returning part of the platform's revenue to PUMP Token holders through a "buyback-powered utility structure". Although the exact distribution ratio is not yet confirmed, and it is unclear whether revenues from PumpSwap will be included, the news has already sparked market discussion. Pump.fun has not responded to multiple inquiries about this matter.
On January 23rd this year, Pump.fun set a record of over $7 million in daily revenue, which has since dropped to an average of around $1 million per day. However, since launching in early 2024, the platform's total revenue has reached $677 million, making it one of the most lucrative new ventures in the current crypto market.
Total Issuance Capped at 1 Trillion, Public and Private Fundraising Synchronized
Sources indicate that PUMP Tokens will be fully unlocked on the Token Generation Event (TGE) day, with both private and public investors receiving tokens simultaneously. However, the project may have additional token issuance plans in the future, but the total supply is expected to remain within the 1 trillion token cap.
Currently, the Pump.fun team is marketing tokens to private investors at $0.004 per token, with plans to launch public sales in the next two weeks. Approximately 25% of tokens will be allocated to public sales, with another 10% reserved for airdrops. Some token sales are reportedly planned for exchanges like Binance, and airdrop activities are being organized.
From Meme Coin Platform to "Next Binance"? Community Opinions Vary
The Pump.fun team had hinted at token issuance as early as October 2023, with an anonymous co-founder stating on X (formerly Twitter) Spaces that they planned to issue tokens to "reward our earliest users". The platform's founders have also stated in interviews: "We reinvest all the money we earn into the platform, and our goal is to create something bigger than Binance, truly bringing cryptocurrency to the masses."
This news was exclusively revealed by The Block media and is highly likely to be a deliberate message from Pump.fun. Some community voices have expressed non-support for Pump.fun's fundraising activities. Since Pump.fun earned substantial SOL transaction fees during the meme coin craze and continues to sell its revenues, some argue that this does not align with Solana ecosystem interests. Pump.fun's fundraising after the meme coin hype has subsided is seen as motivated by self-interest.
Risk Warning
Cryptocurrency investments carry high risks, with potentially volatile prices that could result in total capital loss. Please carefully assess the risks.
