Pump.fun public sale sparks controversy, valuation of 4 billion USD questioned

Recently, the well-known project Pump.fun in the MEME track officially announced the issuance of its native token PUMP, which has sparked widespread attention and discussion in the market.

According to the official announcement, the total supply of PUMP tokens is 1 trillion, of which 15% will be used for the initial coin offering (ICO). The public sale price is set at 0.004 USDT per token, with an expected fundraising of 600 million dollars and an overall project valuation of approximately 4 billion dollars. The public sale will be conducted through multiple trading platforms, including the derivatives markets of certain well-known exchanges. It is worth noting that due to compliance reasons, users from certain countries will not be able to participate in this ICO.

However, the high valuation public sale of Pump.fun has sparked strong doubts within the community. Some believe that, given the current tightening liquidity and low sentiment in the MEME market, Pump.fun not only faces a significant decline in daily income and activity but is also being surpassed in market share by competitors. In this context, a valuation of $4 billion is considered overly optimistic.

What’s even more embarrassing is that the founder of Pump.fun had previously publicly criticized the pre-sale and exchange listing model, believing that these practices lack transparency and could lead to violations. These statements stand in stark contrast to the current token issuance plan.

Some industry experts have issued harsh criticisms of this public sale. They pointed out that Pump.fun's governance structure is opaque, the team's token release terms are unclear, and there is excessive valuation overextension during the market downturn. Some believe that this ICO resembles more of a "exit plan" for the team rather than a long-term development strategy.

However, there are also some voices that hold a relatively optimistic attitude towards Pump.fun. They believe that Pump.fun should not be criticized in isolation, but rather viewed from the perspective of the entire MEME sector. Some analyses point out that if Pump.fun can enhance its value in the future through means such as airdrops, product matrixes, and yield feedback mechanisms, market sentiment may quickly turn around.

The token issuance controversy of Pump.fun actually reflects the common dilemma faced by the current MEME market: a retreat in sentiment, tightening liquidity, and over-leveraged valuations. Nevertheless, there are still many investors in the market willing to participate in such projects, and new token issuance platforms are continuously emerging.

For investors, it is essential to exercise caution when participating in such high-risk projects, thoroughly assess the risks, and adopt appropriate risk management strategies.