As a seasoned crypto investor with a knack for spotting potential in emerging platforms, I find myself intrigued by the latest development surrounding Pump.fun. With a $1.5 billion fully diluted valuation and a significant user base, it’s hard not to take notice. The impressive transaction volume and fee generation data certainly paint a promising picture.
On the private markets trading platform SecondLane, a 1% ownership share in the company Pump.fun was made available for purchase at a price of $15 million.
This puts Pump.fun’s fully diluted valuation (FDV) at $1.5 billion.
Token Launch and New Trading Features
You can buy the stake via SecondLane’s web application or their Telegram group, which frequently shares fresh updates about new offerings.
Pump.fun, not yet introduced with its own token, is a platform established on the Solana network, capitalizing on the popular trend of meme coin trading. It’s managed to garner a substantial user base and records high transaction volumes.
Based on DefiLlama’s findings, Pump.fun ranks eighth among the highest-earning blockchain protocols at present. Notable protocols like Circle and Uniswap sit above it. In the past month alone, it has accumulated approximately $86 million in fees. Its total fee revenue surpasses a remarkable $225 million.
According to PitchBook’s report, it is worth noting that esteemed investors like Alliance DAO, Big Brain Holdings, and 6th Man Ventures have contributed capital as well.
By October 2024, the Pump.fun team subtly suggested a planned token release, without setting an exact date for the event. Furthermore, they revealed their plans for an advanced trading platform called “Pump Advance,” which is anticipated to feature mini-charts, information on prominent holders, and social signals to aid traders in navigating the rapidly expanding meme coin market.
Incentives Amidst High Token Failure Rate
Regardless of its widespread use, Pump.fun encounters several difficulties. According to Dune Analytics, approximately 98% of the meme coins listed there have experienced failure.
In response to this matter, the team responsible for the project implemented a $80 incentive in August 2024, aiming to motivate token creators to finish the bonding curve and effectively list their tokens on Raydium. Additionally, the platform has reduced its token launch fee from $2 to zero.
Due to a rise in inappropriate behavior, such as live streams of harmful actions like self-harm and threatening behaviors, the platform temporarily halted its livestream function. Certain users were found exploiting the feature to boost their digital assets (tokens).
As a researcher in this field, I’ve noticed that meme coins, which form a significant part of Pump.fun’s operations, have sparked a diverse range of responses within the crypto community. Notably, figures like Changpeng Zhao, the former CEO of Binance, have voiced criticism towards the increasing number of these assets. Instead, he advocates for developers to channel their efforts into creating more practical blockchain applications, believing that this could yield more substantial benefits for the cryptocurrency landscape.
Vitalik Buterin, one of the co-creators of Ethereum, encourages developers in the crypto space to move beyond mere duplication of meme tokens and instead focus on creating captivating blockchain-based games.
Read More
- SUI PREDICTION. SUI cryptocurrency
- COW PREDICTION. COW cryptocurrency
- Exploring the Humor and Community Spirit in Deep Rock Galactic: A Reddit Analysis
- WLD PREDICTION. WLD cryptocurrency
- KSM PREDICTION. KSM cryptocurrency
- ADA EUR PREDICTION. ADA cryptocurrency
- W PREDICTION. W cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- Nicole Kidman: ‘I’ve Always Said I Want to Work With Martin Scorsese, If He Does a Film With Women’
- Clash Royale: Is It Really ‘Literally Unplayable’?
2024-12-02 02:58