The Pump.fun token launch has been met with controversy. | Credit: Jon Hobley/MI News/NurPhoto via Getty Images.
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Key Takeaways
The PUMP token has fallen by over 18% since launching.
98% of Pump.fun memecoin launches fail.
The platform’s revenue is down 90% since January 2025.
Since 2024, Pump.fun has become a mainstay in crypto culture thanks to its memecoin-launching prowess, which also came with its fair share of controversies.
Staying on brand, the PUMP token launch has been met with criticism as some believe the token was inflated, and has been perceived as a cash grab by its creators.
PUMP was arguably one of the most anticipated token launches of the year, as evidenced by its public sale selling out within 12 minutes, raising $600 million.
The initial DEX offering (IDO) set out 150 billion PUMP tokens from its total supply of 1 trillion at $0.004 each, implying a $4 billion fully diluted value (FDV) from the outset.
The token’s FDV peaked at $6.13 billion as the token launched to a price of $0.00061301, an increase of around 53% from its public sale price.
Some argued this was a heavy overvaluation, especially considering that the platform’s revenue is down by around 90% from its January 2025 peak.
A report from BitMart Research reinforces this view, as the token lacks utility. There is no governance, staking, or fee-sharing, which doesn’t bode well for its long-term potential.
Then, there are Pump.fun’s token allocations to consider.
A gigantic 40% of the tokens were allocated to the team and its investors, just 15% were allocated for the public sale.
The token has slid by over 11.2% since the public sale two days ago, dropping by an additional 18.4% in the past 24 hours once the tokens were officially unlocked on major exchanges.
Pump.fun token. | Source: CoinMarketCap.
That said, the Pump.fun token recorded $1.46 billion in 24-hour trading volumes with a market cap of $1.97 billion, ranking it 49th amongst the competition.
Some have pointed to an old message from Pump.fun’s pseudonymous co-founder, Alon, who last year wrote that “every pre-sale is a scam.”
Bearishly, this was a signal that the token’s launch was destined to be a market flop from the start.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
