Not sure if you remember, but last month we talked about PumpFun – the memecoin launchpad that basically invented this cycle’s memecoin narrative – and how they were planning to drop their own token.
(Didn’t read that one? Catch up here.)
Well, it happened on Saturday. And damn.
They raised $500M in their initial coin offering (ICO), and it sold out in just 12 minutes.
The token has a total supply of 1 trillion, with a fully diluted valuation (aka FDV) (aka what the whole thing would be worth if all tokens were already in circulation) at $4 billion.
As for how they split up the supply:
👉 33% sold in the ICO: 18% to institutional buyers, 15% to retail buyers;
👉 24% set aside for future projects and the community;
👉 20% for the team;
👉 13% for early investors;
👉 The rest:
Now, the ICO was obviously wild. But not everyone’s impressed – for several reasons:
1/ The valuation
… is kinda nuts for a platform like that.
Their success depends entirely on people still caring about memecoins. If (or when) the hype dies down, the launchpad doesn’t really have another use.
That’s why $4B seems way over the top.
2/ The distribution
The majority of the tokens are going to the team + insiders + existing investors.
That kind of setup usually scares retail, because insiders can dump on them later.
3/ The competition’s already catching up
LetsBONK, another launchpad, is already beating them on some key metrics.
Which just proves how fragile their lead is – someone with better UX, incentives, or lower fees can easily take market share.
So… can this thing last?
In the short term, probably. They’ve clearly got hype for now + an airdrop coming up to keep people interested.
Long-term? Eh.
If they don’t figure out how to stay relevant when / if the memecoin bubble pops, they’ll be forgotten.
And if that happens, the token will probably be forgotten, too.
Now you’re in the know. But think about your friends – they probably have no idea. I wonder who could fix that… 😃🫵
Spread the word and be the hero you know you are!
