Pump.fun, the popular Solana-based memecoin launchpad, has completed its PUMP token’s initial coin offering (ICO).
The massive success of the ICO comes amidst criticisms of Pump.fun and early concerns as to how the presale would go. The protocol announced it a few days ago, noting that the ICO would start from July 12 and end by July 15 or until the available tokens sold out.
With 150 billion PUMP tokens, which represent 15% of PUMP’s total supply available for sale through the ICO at a price of $0.004, the successful sale means that Pump.fun raised $600 million through the public sale. Pump.fun has also confirmed the conclusion of the sale, noting that it happened within 12 minutes and praising its community for participating.
It said:
“The $PUMP public sale has now ended. We are delighted to reveal that the $PUMP public sale was able to sell out in only 12 minutes. We would like to thank our entire community for participating!”
With the sale ending, the protocol said that the distribution phase will start within 48 – 72 hours. Based on the protocol’s plan, the token will only become tradable after the distribution phase has ended.
Interestingly, the ICO did not allow US and UK residents to participate with Know Your Customer (KYC) verification in place to prevent residents of those countries from participating. However, the restrictions did not impact interest in PUMP, with demand outstripping supply.
Pump.fun warns users about copycat tokens
Meanwhile, the protocol has warned users to be careful with copycat tokens that may have similar names. It noted that the contract address for the official PUMP token is pumpCmXqMfrsAkQ5r49WcJnRayYRqmXz6ae8H7H9Dfn.
It said:
“Do not trust any other tokens. The $PUMP token is not yet tradable or transferable. This is the only official $PUMP contract address.”
The warning is not surprising given how bad actors tend to take advantage of major token events such as this to defraud users through phishing links or even by listing copycat tokens. Already, several tokens with similar names have surfaced, with Dexscreener data showing that a PUMP token is trending on PumpSwap.
Concerns and criticisms about Pump.fun continue
While the ICO has been a massive success in all metrics, mixed reactions have trailed the event. For fans of Pump.fun, it proves the protocol’s staying power, strong community, and massive liquidity in the crypto industry.
However, critics believe it is another mass extraction event. They claim this shows users who lost millions to memecoins launched through Pump.fun did not learn anything, and will allow the platform to make more money off them.
Even before the ICO, there were already concerns about the PUMP token, with many noting that its tokenomics do not favor the average user. With a 1 trillion supply, of which only 15% is for public sale, many believe VCs invested in Pump.fun, and the protocol team will be the biggest beneficiary.
Still, many people will wait to see how the PUMP token will perform in the long run. Pump.fun has said its plan is to replace all social media platforms onchain by allowing everyone to connect to a global network through its platform. It claimed that the PUMP token is crucial to this plan.
Already, the market is pricing the token at over 60% above its ICO price on the decentralized derivatives platform Hyperliquid. The platform launched a perpetual pair of PUMP/USD a few days ago, and it is now priced at $0.00621 after a 15% gain.
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