Pump.fun token rumors mount as protocol revenue drops 71%

Solana-based memecoin launchpad Pump.fun is rumored to be preparing for a $1 billion token sale at a $4 billion valuation.

On June 3, a community memberpostedon X about a Pump.fun token launch within the next two weeks, with listings on multiple centralized exchanges and a 10% airdrop allocated to community members.

Speculation intensified following a Blockworksreportciting anonymous sources saying the launchpad — known for its instant token creation feature — would raise $1 billion through a token sale. The report claimed three sources confirmed the sale would be valued at $4 billion.

Pump.fun has yet to confirm or deny the reports on its official channels and has not provided details regarding the token’s utility or launch mechanics.

Cointelegraph reached out to Pump.fun but had not received a response by publication.

Community responds to Pump.fun token rumors

Reaction across the crypto community was mixed.

Crypto influencer Ansemsaidhe “can’t wait” for the token, citing its potential listing on the perpetual futures decentralized exchange Hyperliquid.

Social media personality Ash CryptosaidPump.fun turned altcoin investors into memecoin gamblers. “PumpFun has ruined crypto space,” they wrote, adding that the platform had already “extracted” $700 million while a majority lost money from tokens launched.

As of June 4, data aggregator DefiLlamashowedthat the Pump.fun protocol had earned a cumulative revenue of about $677 million.

Crypto analyst Miles Deutschersaidthere’s a good and bad side to a potential Pump.fun token launch. The analyst said it’s good for making money if users are skilled. However, Deutscher said the token launch is a net bad for crypto:

DefiLlama developer 0xngmi questioned the potential raise. The pseudonymous developer asked how the platform would invest the funds if they were sitting on nearly $700 million they hadn’t spent yet. “What are they planning to do with 1bn?,” the developerasked.

Related:Trump memecoin wallet in ‘absolute chaos’ as family org unaware of launch

Token rumors come amid a 66% drop in monthly revenue

The rumored raise comes amid a steep decline in monthly revenue for Pump.fun. In May, the platform generated $46.6 million, down 66% from January’s $137 million,accordingto DefiLlama.

The rumors also came amid a slowdown in the memecoin space. Traders have beenquestioning the long-term viabilityof memecoins as the tokens have experienced sharp declines in value. CoinMarketCap data showed that the overall market capitalization for meme-based tokens has dropped $64 billion on June 4, down over 54% from December’s $137 billion.

Magazine:Memecoins are ded — But Solana ‘100x better’ despite revenue plunge

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