PUMP Token Launches With $5.6B Valuation Amid Controversy Over Presale Funds
By: Isha Das
Pump.fun has made headlines with the debut of its PUMP token, opening at a staggering fully diluted valuation (FDV) of approximately $5.6 billion. The Solana-based asset marked a remarkable beginning, recording over $34 million in volume within the first three hours of trading. As per data from trusted decentralized exchange statistics, the token started trading at around $0.005128, indicating a current FDV of nearly $5.12 billion. The debut showcased impressive liquidity of $19.3 million, alongside a substantial 11,160 on-chain transactions completed during this short span.
The launch comes on the heels of a brisk public sale that took place over a mere 12 minutes, raising $500 million. This sale saw an equitable price of $0.004 per token, with an impressive 125 billion PUMP tokens distributed. The tokens were made available on Pump.fun’s website and through four centralized exchanges, signifying one of the fastest ICO capital raises historically. On-chain analytics reveal that, despite mandatory Know Your Customer (KYC) procedures completed by nearly 24,000 wallets, fewer than half have managed to secure tokens.
In stark contrast to the exuberance surrounding its launch, Pump.fun faced a wave of speculations regarding the lock-up of its $500 million presale funds. These rumors, fueled by a social media user, suggested that due to the absence of a critical withdrawal function in the smart contract, the funds might remain inaccessible. However, in-depth investigations have debunked these claims, reassuring investors that concerns over the lock-up were baseless. The snippet gained significant attention, racking up nearly a million views.
Pump.fun's transparent breakdown of their token allocation reflects a thorough community-focused approach. Allocations designated 33% of the supply for the ICO, with notable portions assigned to community and ecosystem initiatives, the founding team, and existing investors. This strategic distribution is complemented by identity verification requirements which excluded participants from the US and UK, portraying their commitment to regulatory compliance. Such measures depict an effort to distinguish themselves from prior memecoin projects, fortifying their trust within the cryptocurrency domain.
