Solana’s memecoin powerhouse Pump.fun eyes $1B raise at $4B valuation
Here's experts' outlook on Pump.fun's expected token launch.
- Pump.fun reportedly plans to launch a token by June.
- Analysts have warned of a likely liquidity risk to the Solana ecosystem.
Solana [SOL] memecoin launchpad, Pump.fun, could launch its token as soon as this June, according to a Blockworks report. The report noted that platform plans for a $1B token sale at a $4B valuation.
Additionally, the tokens will reportedly be sold to private and public investors. In fact, one user claimed that there will be an airdrop for users, and some seed investors have been informed as well.
Pump.fun success and risks
The launchpad debuted in January 2024 and sparked the ‘memecoin supercycle’ narrative, aiding Solana’s performance to some extent.
Anyone could easily create a token and graduate to Raydium AMM (automated market maker).
At the peak of the 2024 market rally, the platform was generating $5M-$7M in revenue per day. Since its debut, the Pump.fun has generated over $700 million in cumulative revenue, underscoring its success story.
However, competition forced it to diversify. It launched its AMM, Pumpswap, and ended its Raydium partnership.
In fact, some have speculated that the team may even opt for a fully fledged L1 as part of its growth strategy.
As one of the leading liquidity providers in the Solana ecosystem, Pump.fun’s growth or divergence from the chain could be a risk factor to SOL, noted Bitget’s chief analyst Ryan Lee.
In an email statement to AMBCrypto, Lee said,
“Pump.fun’s transition from relying on Raydium to its own PumpSwap, has shifted trading volumes internally, potentially reducing liquidity available to other decentralized exchanges on Solana.”
Lee also flagged the platform’s transfer of 798,000 SOL to exchanges, as a volatility source that could destabilize the SOL market. He called for balanced Pump.fun growth in a way that doesn’t affect Solana’s health.
Similar reservations were shared by crypto influencer Ansem. He stated,
“Pump.fun raising $1B at $4B after TRUMP memecoin launch is like the second plane hitting the towers.”
For perspective, TRUMP memecoin’s debut in January drained liquidity across the market, triggering a local peak. What followed was an extended correction that lasted until April.
In fact, after the update, the $110 SOL put option for end of June expiry (bearish bet) was the largest traded volume as of 4 June. This meant traders were prepared for a $110 floor price in the bearish scenario.
Even so, the Put/Call ratio for the 27th of June Option expiry was at 0.24, meaning that there was more demand for calls (bullish bets) than puts.
A Put/Call ratio value above 1 would suggest dominance for puts. In short, the expected PUMP token debut got some SOL traders eyeing $110 support despite the overall bullish outlook.
