Pump.fun Token Launch Controversy: Meme Coin Sell-off, Risk Aversion, and Ongoing Debate
Recently, Pump.fun, the so-called “meme engine” on Solana, has once again stirred up the market. Rumors of an upcoming token launch triggered sharp risk-off sentiment across the already fragile on-chain ecosystem. Some call it the new benchmark of the attention economy; others label it the “number one toxic asset” in the Solana ecosystem.
So, is Pump.fun an untamed dark horse or the final frenzy of crypto’s FOMO culture? This token launch turmoil might be the ultimate litmus test of its real value.
What Happened: The Pump.fun Token Launch Buzz
Here’s the scoop: Pump.fun is reportedly planning to raise $1 billion at a $4 billion valuation through both public and private token sales. The news sent shockwaves through the Solana ecosystem, triggering a surge in risk-averse behavior. While the official launch date remains unconfirmed, hints from its social accounts suggest something could happen “within two weeks” — a statement eerily similar to what they said last time.
In fact, this isn’t Pump.fun’s first attempt at a token launch. Back in February, they considered a Dutch auction, but Trump and his wife launched their meme coins at the same time, sucking up all the attention and liquidity. Pump.fun had to put things on hold. Now, even though the market has slightly recovered, it’s still not at peak momentum. So, can this token launch actually succeed? That’s not something we can judge lightly — it has to be seen from the market’s perspective.
The Cold, Hard Data
As of June 4, Pump.fun has generated over $730 million in cumulative revenue. Sounds impressive, right? But hold on — since February, daily revenue has dropped significantly from nearly $15 million at its peak to just a few million, effectively halving.Trading Volume
Back in late 2024, Pump.fun hit a record high of $3.3 billion in weekly trading volume. Today, even reaching $1 billion would be a cause for celebration. In short, liquidity and user activity are severely depleted after the initial “pump.”
Even more concerning: the number of tokens created per day has dropped from a peak of 70,000 to around 30,000. What does that tell us? Users are losing interest in this “roll-the-dice” game.
- Who’s Actually Making Money?
Pump.fun might seem like a fast track to financial freedom, but the reality is far more sobering. According to Dune data, out of roughly 594,000 active wallets in May:
Only 3.6% earned over $500,
Just 0.1% made more than $10,000,
And a mere 27 wallets (~0.0045%) netted over $100,000.
Meanwhile, 52.5% of users lost money, with some losing over $1 million.
The logic is simple: the vast majority are “exit liquidity” for a tiny group of winners — much like a casino where everyone thinks they’ll win but ends up losing.
Solana Faces Risk-Off Exodus
As rumors of Pump.fun’s token intensified, Solana-based meme coins took a beating. Within 24 hours of the announcement, major Solana meme coins posted losses, and Artemis data showed Solana had the third-highest net capital outflow among all chains.
In essence, Pump.fun’s token plan is seen as a looming liquidity drain — and the market is responding accordingly.
The $4 Billion Valuation Backlash
The most contentious issue? That jaw-dropping $4 billion valuation. For context, Yuga Labs was valued at a similar level during the APE token launch. So how can Pump.fun justify such a lofty price?
Crypto researcher @Haotian didn’t mince words, calling the valuation “deeply inflated.” His four key criticisms:
Attention monetization is a short-term game: Built on FOMO and speculation, not long-term fundamentals.
No real moat: A new Solana app could easily replace it.
Over-engineering hurts the meme spirit: Meme culture thrives on simplicity — too many features can kill the vibe.
Valuation incentives harm innovation: When traffic monetization trumps real tech, crypto veers off its original course.
Another KOL, @xingpt, noted that Pump.fun has a 30-day annualized revenue of $77.98 million. With an FDV of $5 billion, its FDV/revenue ratio is around 64 — a notably high number. Meanwhile, DeFi blue chips like Raydium and PancakeSwap have more consistent profitability but are valued more conservatively, highlighting Pump.fun’s disproportionate risk.
But Not Everyone Is Bearish
Supporters are speaking up. KOL @ CryptoV argued that Pump.fun was instrumental in making Solana the battleground for on-chain activity. It solved the full-stack problem — from zero liquidity to CEX listings — just like an on-chain iPhone. In his view, Pump.fun hits the two key metrics of an attention economy: liquidity and screen time.
He also argues that with a P/E ratio of just 5, Pump.fun might actually be a value investment. No airdrops, no insider games — just pure product-led traction. And in that sense, it’s more stable than many hype-driven projects.
Conclusion
At first glance, Pump.fun’s token plans may just look like another market hype event. But beneath the surface lies a deeper battle of crypto ideologies: value systems, valuation models, attention economics, and sustainability.
In the short term, the project may still spark a temporary surge. But in the long run, whether this FOMO-driven business model can build true defensibility remains to be seen. If it manages to create a full meme ecosystem through this token launch, it might just deserve the title of “on-chain iPhone.” But if it’s merely the final exit pump, it’ll leave behind little more than wreckage.
The next few weeks will be critical. This isn’t just another token launch — it’s a live experiment in the mechanics of on-chain attention economies.
