According to social media information from ChainCatcher, IOSG founding partner Jocy believes that this Pump.fun public offering is more like using participants as exit liquidity, and is a highly speculative gamble.
Jocy stated that since its launch in early 2024, Pump.fun has experienced explosive growth, with cumulative protocol revenue reaching approximately $700 million, becoming one of the most profitable projects in the cryptocurrency field. However, Pump.fun's daily revenue has dropped 92% from its peak, currently around $500,000. The market value of graduated projects has plummeted from millions to a low of $50,000-$100,000. Market share has been surpassed by competitor LetsBonk (51% market share), with Pump.fun dropping to 39.9%.
From the perspective of token economics and risk exposure, this ICO targets retail investors (15%) and institutions (18%), selling a total of 33% of tokens, corresponding to financing of $1.32 billion. Combined with previous fee income, the Pump.fun team will hold nearly $2 billion in cash. This represents an extremely unfriendly risk exposure for public investors:
· Opaque governance structure: Decision-making process is a mystery
· Unclear token release terms for team/investors
· High valuation excessively mortgages future growth potential
Jocy believes that the Pump.fun team has neither the willingness nor the ability to "pump" or "control" the market. They have already obtained enormous wealth through fees, and this ICO is more like a final "value realization" (Exit Liquidity). In the current market environment with severe lack of buying pressure, such a high valuation is unsustainable. This is completely different from Hyperliquid's valuation support logic. Jocy considers this public offering a highly speculative gamble, not a fundamental investment. Invested funds should be considered as completely risked capital. The market has shown fatigue in the growth potential of MEME launch platforms and Altcoins. He recommends investors wait a week after the token begins trading on the open market to observe the real market reaction.
