Pump platform's $4 billion valuation sparks controversy

Recently, a well-known MEME token launch platform announced the launch of its platform token, attracting widespread attention in the market. The platform plans to issue a total of 1 trillion tokens, of which 33% will be used for fundraising through the initial token offering. The token price for both private and public rounds is uniformly set at $0.004 per token, with an overall valuation reaching $4 billion. It is worth noting that all these tokens will be released upon initial issuance, which could lead to a potential selling pressure of up to $1.32 billion. As of July 11, the pre-market trading price of the token on certain trading platforms is approximately $0.0051, which is about a 22% premium over the fundraising price.

This highly valued token issuance plan has raised many doubts in the current market environment. The market is facing liquidity tightening and low sentiment. As a leading MEME launch platform, its daily income and user activity have significantly declined compared to peak periods, and its market share is gradually being eroded by emerging competitors. Against this backdrop, its high valuation public offering is generally considered to have structural issues: the tokens lack actual value support, there is considerable early selling pressure, the team's unlocking plan is not transparent enough, and it has clearly overdrawn its valuation during the down cycle of altcoins.

Since its launch in January 2024, the platform has accumulated nearly $670 million in revenue, with a peak daily transaction fee close to $7 million, once monopolizing the market for a public chain's MEME token launch platform. However, just as its tokens were about to be issued, a competitor named letsbonk emerged strongly. Data shows that letsbonk surpassed the platform with 15,600 token issuances compared to the latter's 11,500, achieving a market share of 49.8%, surpassing the latter's 40.9%. This marks the first time since January 2024 that the platform has been surpassed by a competitor in the MEME market share, raising questions about its monopoly position.

Token Economic Model Analysis

The platform's token allocation plan is as follows:

• 33% for Initial Coin Offering
• 24% allocated to community and ecosystem plans
• 20% allocated to the team
• 2.4% for the ecosystem fund
• 2% for the platform
• 13% for existing investors
• 3% allocated to live streaming
• 2.6% for liquidity and platform

Token sale details:

• The private placement round accounts for 18% of the total supply and is aimed at institutional investors.
• The public offering round accounts for 15%, conducted through 6 centralized platforms.
• The fundraising price is $0.004 per token, with a total valuation of $4 billion.
• All tokens will be fully unlocked on the first day of launch.

Schedule:

• Start: July 12, 2025 UTC 14:00
• End: July 15, 2025, 14:00 UTC or until tokens are sold out
• Token distribution: within 48-72 hours after the sale ends
• Free transfer: Open within 48-72 hours after issuance.

Participation Requirements:

• You must complete KYC real-name authentication
• Residents in some areas are prohibited from participating.

It is worth noting that the only purpose of this token is to promote the platform, and it does not have rights such as equity, profit rights, voting rights, or platform fee sharing. The proceeds from the token sale will be used for the platform's operational reserves or to pay service provider fees.

Competitor Comparison

Comparing this platform with its main competitors, it can be observed that:

1. Market share: the platform remains in the lead, but its advantage is being eroded.
2. Token economic model: The platform's tokens lack actual value support, while competitors such as letsbonk and a certain Studio have designed a more complete value closed loop.
3. Platform fee model: Each platform adopts a transaction fee model, but the distribution methods vary.

Risk Analysis

1. Increased market competition: Recently, the market share has been surpassed multiple times by competitors, with a valuation of 4 billion dollars significantly higher than major competitors.
2. Token model flaws: Lack of basic economic rights makes it difficult to incentivize long-term holding.
3. Poor market environment: The liquidity of the altcoin market is tight, lacking sufficient funds to carry on.
4. Selling pressure risk: The subscription amount in the primary market is too large, and there may be insufficient buying pressure in the secondary market; a large number of tokens are unlocked at the opening, which may face significant selling pressure in the short term.

Overall, although the platform's token issuance this time continues its brand influence, under the multiple pressures of fierce market competition, defects in the token mechanism, and a conservative funding sentiment, its high valuation and high selling pressure structure may amplify market uncertainty. The future performance of the token largely depends on whether the project team can timely establish a more sustainable token value system and reinforce its market position and user confidence through product innovation or ecological integration.