Pump.fun $4 billion valuation token issuance: Savior or the final cut?
The enthusiasm in the meme market is waning, and it's hard to find the phenomenal 'Golden Dog', but the meme launch platform Pump.fun is making headway against the trend. According to Blockworks, Pump.fun plans to issue tokens at a valuation of $4 billion, aiming to raise $1 billion, with the token possibly named '$PUMP', likely accompanied by airdrops. This news has sparked heated discussions in the market, with the ALON token surging 102% at one point, but community opinions are divided: supporters look forward to dividends and governance benefits, while skeptics believe the valuation is inflated, suspecting it to be 'cutting leeks'.
Pump.fun has an annual revenue of about $710 million, with a price-to-sales ratio of 5.63, comparable to DeFi projects. If the token distributes half of its revenue as dividends, the price-to-earnings ratio would be 11.4, lower than the average of US tech stocks. However, driven by meme market sentiment, revenues are highly volatile, with daily income plummeting from $14 million to $110, making it difficult for the valuation to find a stable anchor. Compared to Circle's $7.2 billion IPO valuation, Pump.fun's $4 billion seems outrageous.
There are clear signs of market 'exhaustion', with the meme market capitalization evaporating $40 billion in 2024, and Solana DEX trading volume shrinking by 20% in 2025, as new tokens quickly drop to zero. Pump.fun launches an average of 30,000 tokens daily, accounting for half of Solana DEX's trading volume, yet it cannot hide the market fatigue. The platform's sale of 18.2 million SOL for USDC has also triggered a trust crisis.
After the token issuance, can Pump.fun upgrade its gameplay and boost the market? As it stands, the answer leans towards negative. Emerging launchpads are challenging its status, and the community's skepticism continues. Researcher Haotian stated that a $4 billion valuation may signify the maturity of the meme economy, but it could also signal a collapse of industry values.
What do people think about Pump's token issuance? Is it the grave of Solana memes or a rebirth?
