Author: Unipcs
Compiled by: Tim, PANews
PANews note: The author of this article, Unipcs, is an opinion leader in the Bonk ecosystem. The translation aims to share information and is not investment advice. DYOR.
Several people have already come to ask me about my views on the Pumpfun TGE event and the PUMP token.
Considering that this is the most anticipated token issuance event in some time, and many people have recently begun to compare it with BonkFun. After all, since surpassing Pumpfun, Bonkfun has dominated the conversation. Therefore, I believe it is necessary to systematically elaborate on my views.
Regarding the PUMP token, the information I currently have is as follows:
They raised $1 billion at a $4 billion valuation.
Predictions and the over-the-counter market expect the token's valuation to be between $7 billion to $8 billion after its launch, with some trading platforms even giving valuations as high as $10 billion.
What does this mean for BONK, the BonkFun ecosystem, especially in the meme coin battleground and the entire meme coin market?
I commented a few times on X, believing that the PUMP token is fully worth the valuation of $4 billion during fundraising.
I also said it could easily rank among the top 10 to 15 in the cryptocurrency market.
These comments are based on historical revenues and expected revenues of the Pumpfun project at that time, compared with the valuations of other cryptocurrencies.
When I said those words, I didn't expect BonkFun to surpass PumpFun so quickly and forcefully.
That being said, here are my latest thoughts:
1. Although I believe Pumpfun's growth momentum is certainly not over, in the foreseeable future, BonkFun is likely to continue to maintain its position as an industry leader.
This conclusion is based on the following reasons:
1. Bonkfun values creators and users and is close to the Solana ecosystem, all of which are significant advantages.
2. The strong culture formed within the BONK ecosystem is gradually permeating the tokens launched on BonkFun, and this cultural barrier is something that others find it very difficult to replicate in the short term.
3. Pumpfun, as a no-token protocol, once had strong momentum, especially with TGE and potential airdrops approaching. However, a few days or weeks before TGE, its market share suffered a heavy blow. It is hard to imagine that it can continue to recover to its former market position after TGE.
4. Although all launch platforms struggle with bot issues, I believe that a considerable amount of activity on Pumpfun actually comes from two types of entities: one is advanced users, and the other is bots specifically trading to seize airdrop opportunities. After all, Pumpfun has long been the most profitable protocol in the crypto space, so this situation is quite normal. I believe that this type of activity will gradually decrease or stop after TGE, as the incentive measures have already ended.
5. Even more astonishing is that Bonkfun's growth is entirely organic and natural. Its momentum comes solely from deep synergy with the Solana ecosystem, without ever committing to any token incentives or creating token expectations. The BONK token already existed before the platform went live, and the platform has always clearly stated: all fees will be used to repurchase and destroy BONK tokens.
6. It is worth noting that BonkFun's rapid growth is largely attributed to the continuous expansion of its global influence, especially in gaining recognition from important cultural circles. For example, the Chinese market is vigorously embracing this project, making it the top token issuance platform locally. Chinese institutions are flooding into Solana, and the number of tokens issued on the BonkFun platform has broken historical records, far exceeding any other blockchain project. BonkFun is especially adept at laying out in this field, and its momentum continues to strengthen. I believe this point is still habitually overlooked by many.
This doesn't even take into account certain new strategic initiatives that Bonkfun may undertake in the foreseeable future.
Overall, I believe BonkFun's strategic positioning is sufficient to lead the launch platform into the long-term future.
What I mean is that Pumpfun may indeed announce some interesting news in an attempt to regain market share before TGE, but I believe that even if they do, the effect will be fleeting.
2. The TGE of the PUMP token is a bullish catalyst for BONK, BonkFun, and its ecosystem.
Many people have been promoting the idea that the upcoming PUMP token will siphon off liquidity from hot sectors, leading meme coins, and the BonkFun ecosystem.
Although if it had been established a week or two ago, I would think the situation would be different now.
BonkFun's rapid crushing of Pumpfun, especially as it approaches its TGE, will effectively suppress the market's irrational enthusiasm for the PUMP token, thereby avoiding incidents of meme coins and liquidity pool draining. After all, in the recent context of continuous industry turmoil, abandoning long-term value projects in favor of speculative tokens is truly baffling.
3. The issuance of PUMP tokens is now gradually becoming clearer, with BONK and the BonkFun ecosystem as the main characters.
The economics of the PUMP token remain very opaque, and the disclosure of specific details is quite limited.
It is certain that 50% of the fees on the BonkFun platform are used to repurchase and destroy BONK tokens.
Additionally, we also know that 58% of the total fees on the BonkFun platform will somehow be used to purchase BONK tokens.
I do not know how the final economics of the PUMP token will be designed, but I currently do not see how it can be more competitive than BonkFun.
Especially considering the fact that Pumpfun raised $1 billion at a $4 billion valuation, despite being a highly profitable company (its profit has approached $1 billion in the past year and a half).
I think the best trade in PUMP TGE is BONK and its BonkFun ecosystem coin:
If PUMP raises $4 billion and is valued by third parties at as much as $10 billion, then considering BONK's recent market dominance and sustained leading potential, what should its valuation be?
Especially considering that BonkFun is just one of many ecosystem products that bring buying pressure and destruction to BONK, the current market cap of $1.8 billion for BONK appears to be severely underestimated.
If I were a rational investor, I would think that in the current environment, purchasing BONK for $1.8 billion would yield a higher investment return than buying PUMP for $4 billion or more.
I also believe that given the current situation, the BonkFun ecosystem will take on more buy orders and aggressively push up coin prices.
Moreover, we have not considered a highly likely scenario: Pumpfun may lose its momentum and market share after completing TGE.
4. BonkFun's sustained dominance is a very positive signal for meme coins and frontier tracks.
One important reason why many in the industry are rallying behind BonkFun and resisting Pumpfun is that they believe Pumpfun has severe 'draining' tendencies.
This 'extractive' negative reputation mainly stems from their behavior of selling SOL (amounting to hundreds of millions of dollars).
The success of meme coins is strongly correlated with the activity level of on-chain activities, such as the price of the SOL token on the Solana chain.
If the price of SOL continues to rise or remains relatively stable, this will benefit the on-chain ecosystem and trading conditions, as it will provide more people with opportunities to participate in meme coin casino games.
This means that blue-chip meme coins are more resistant to declines, and newly launched tokens and small-cap coins have more supportive price floors, thus prompting people to launch more meme coins and create narratives.
In this regard, BonkFun's progress is all going smoothly:
BonkFun stakes 15% of all fees generated by the platform in the form of SOL with the BONKSol validator nodes. This move not only effectively reduces the selling pressure on SOL but also makes a substantial contribution to maintaining the security of the Solana network by becoming a validator node with a large amount of tokens staked.
58% of all revenue will be used to purchase BONK. Those familiar with the meme coin market know the patterns of 'Dogecoin rallies.' When a strong meme coin continues to skyrocket, it drives up other large-cap coins and ignites the speculative enthusiasm of crypto gamblers, thereby giving rise to more new meme coin projects and narratives.
So in this case, on one hand, SOL selling decreases, and on the other hand, a more aggressive token repurchase and destruction mechanism continues to push BONK to incredible heights.
The more often this happens, the more active and crazy the speculative trading becomes, creating a self-reinforcing flywheel effect.
You can call it 'Bonk flywheel' or 'Bonk sports car,' either way, you get my point.
I don't know how best to express this, but I think it's inevitable: BonkFun will become the ultimate winner, benefiting the community and the entire meme coin market, even if you don't hold a single token from the BonkFun ecosystem.
Conclusion
The recent success of BonkFun has already indicated one thing: PUMP TGE, which many once thought would be terrible for the meme coin and junk coin market because it would drain a lot of liquidity. Now, with the arrival of this highly anticipated token issuance event, funds are flowing into BONK and the BonkFun ecosystem, turning it into a potential catalyst for boosting the meme coin and junk coin market.
