Pump.fun Plans to Raise $600M in Public Sale of PUMP Token: Is LetsBONK’s Success a Concern to Worry About?

After months of preparation, Pump.fun, a Solana (SOL)-based launchpad for memecoin, will conduct its initial coin offering (ICO) between July 12 and 15 through the Gate.io cryptocurrency exchange. Pump.fun public token sale will involve 150 billion tokens at an initial selling price of about $0.004.

According to the announcement, the PUMP token will have a maximum supply of 1 trillion tokens, thus a fully diluted valuation of about $4 billion. 

Pump.fun Faces Market Threat

The Pump.fun platform has registered magnificent results in daily revenue in the past year, fueled by the high demand for Solana-based memecoins. As Coinpedia has reported in the past, Pump.fun developers have deposited hundreds of millions of dollars worth of Solana to different cryptocurrency exchanges.

However, the company’s revenues have been shrinking day by day following the significant traction of LetsBONK.fun platform. 

According to market data provided by Defillama, LetsBONK.fun recorded a daily revenue of more than $1 million compared to Pump.fun’s $533k in the same period. The palpable success rate of LetsBONK.fun is heavily influenced by the Bonk (BONK) memecoin, which is the largest meme project on the Solana network.

With the legal challenges facing the Pump.fun platform, including lawsuits accusing the platform of enabling pump and dump schemes. Furthermore, the Pump.fun platform has a huge number of bots creating tokens every minute, but hardly are the tokens created developed to grow a community.