- Pump.Fun’s rapid growth and $ 700 million in protocol income emphasize its strong foundations.
- Can retail investors really benefit from pump?
Pump.Fun, a Memecoin Launchpad that was launched at the beginning of 2024, quickly grew by making it easy for everyone to make tokens and exchange with almost no technical knowledge.
Now the team is planning to sell its own token, pump, with a rating of $ 4 billion, with the aim of collecting $ 1 billion. The movement, although ambitious, has drawn mixed reactions.
Critics claim that the high price limits limits meaningful profits, especially for buyers of the retail trade that arrive in peak valuation. So, does the pom planing represent a risky gamble where the retail trade eventually becomes exit-liquidity?
Who really benefits?
Pump.Fun started with a simple idea – challenge the Big Defi platforms that make money with setting up Polish. Normally users lock their tokens in those Polish and earn yields over time.
But Pump.Fun took a different route. It immediately lets everyone make and exchange memecoins. Every time someone buys or sells, the platform earns a small fee. And the results speak for themselves.
In just a few months, Pump. Fun has facilitated the launch of more than 11 million tokens and generated almost $ 700 million in protocol income, in the top five of all crypto protocols with a profit of 30 days.
Source: Duin
That is really the bullish perspective on pump.
If Pomp.Fun continues with an exchange of income mechanism25% of the protocol income is used for regular repurchase of the pumping smoking, it can cause sustainable purchasing pressure.
In simple terms, every time someone launches or exchanges a coin, a small fee is collected, and part of it could go to supporting pump. So if Pump.fun continues to earn money, pumping smoking could grow with it.
But that doesn’t mean it’s all upside down. Those who entered early can still end with the most rewards, while smaller shop investors can stay less of the cake.
If pump. Fun, risks are left behind
Pump tokenomics Reveal potential risks.
The total offer is set on 1 trillion tokens, with 10% (100b) allocated for an airdrop, probably aimed at early users. Another 25% (250b) is reserved for a public token sale, with the aim of retrieving $ 1 billion on an FDV of $ 4 billion.
But the catch is that the entire 25% from the sale will be completely unlocked on the first day. No fortress, no cliff. That is great for early buyers who want immediate liquidity.
However, it also opens the door to serious sales pressure immediately after the launch. If everyone is looking for a quick profit, the price can shoot quickly and then crash just as quickly.
That is why some people call it overvalued and warn that this setup could eventually hurt the retail trade.