When PUMP.FUN issues tokens, the MEME launch platform has reached its conclusion.

1/ The valuation of the final feast is too high

As the leader in the track, PUMP issues tokens with a valuation of $4 billion. Compared to the top DEX Jupiter on SOL, which has a current FDV of only $5.4 billion, the valuation is quite high.

2/ Hosting guests in a high-rise

As the engine of this round of MEME tracks, #pumpfun created the concept of 'everyone can issue tokens'. What is seen at the front desk is the wealth effect of 10x and 100x in a short time, but behind it, countless DEV (conspiracy groups) are its core.

With everyone's response to the wave of VC tokens with high valuations and low unlocks, there was a time of 'fame and fortune'. However, as the project team continues to sell tokens, it has caused dissatisfaction from the SOL Foundation and the SOL community. This behavior of only taking and not giving back has led to backlash.

With the rise of other launch platforms and the weakening of the MEME wealth effect, PUMP has made no other changes to the protocol itself and ultimately chose to issue tokens for the final liquidity harvesting.

When a highly profitable track leader starts issuing tokens, it often signifies a weakening of the wealth effect in the track, making it impossible to continue forming a positive spiral. Coupled with the experiences from the previous two major tracks of inscriptions and NFTs, the window period given is actually very short. No one wants to end up being the new @Opensea , playing a good hand poorly in the end.

In summary, issuing tokens is an inevitable choice and signifies that the MEME track has likely hit its ceiling. If there are no new gameplay and incentive models, the first to exit will not be the P small generals, but countless DEVs.

3/ Version iteration

The industry is constantly iterating. The end of a track may be accompanied by a brief period of pain in the industry, but after the pain period comes a new round of wealth transfer.

After PUMP issues tokens, it will inevitably cause a withdrawal of market liquidity, particularly impacting #sol and a host of altcoins. Market liquidity is shared; if someone takes away a bucket, the water in the tank becomes less and less.

4/ Where are the opportunities for retail investors

CEX arbitrage: Adopt an attitude of getting something for nothing, observe the activities of major exchanges, take advantage if possible, and sell if you can after going live. @币安Binance华语 hLaunchpad Binacne alpha airdrop.

Arbitrage opportunities: Pay attention to the price differences on exchanges before the opening. If there is profit, arbitrage by preparing funds on-chain in advance.

The season may really be over, but the new season has already begun.