Launched in early 2024, Pump.fun pioneered the concept of memecoin launchpads. It was created with the goal of offering a safer, fairer and more fun system for both users and creators. The platform allowed clients to launch tradable tokens almost instantly, with minimal technical knowledge or cost. This simplified process, combined with the use of a bonding curve model and fair launch mechanism, propelled Pump.fun to the forefront of the entire crypto industry and made it a cornerstone within the Solana ecosystem over the next few months, surpassing $50 million in cumulative revenue in just half a year. 

Since then, Pump.fun has evolved into a complete product suite: a memecoin launchpad, an application programming interface (API), a decentralised exchange (DEX), and a streaming platform. It is responsible for over 11 million tokens launched on Solana from the launch in January 2024 up to June 2025. This number does not include tokens minted by competitors like Boop.fun and Bonk.fun, who have followed in Pump.fun’sfootsteps, attempting to provide alternatives and improvements to the existing memecoin launch model.

Despite all this, retail users and traders have never had a means to gain direct exposure and benefit from the platform’s major success and growth. That is, until June 2025.

Keep reading the article by the DWF Ventures team to learn more about Pump.fun’s potential and market position.

The PUMP Token Sale

During an X Space interview in October 2024, co-founder of Pump.fun Sapijiju surprisingly brought up plans for an airdrop, marking the first time that a token was ever hinted at for the platform. While no additional information was released in the months after, multiple sources, such as The Block, Blockworks and others, reported early in June 2025 on Pump.fun's plans for a $1 billion sale of the PUMP token at a massive $4 billion Fully Diluted Valuation (FDV).

Although the team has not officially confirmed PUMP’s tokenomics, various details about them have been circulating. These include:

• Total supply: 1 trillion 
• Airdrop: 100 billion (10%)
• Token sale: 250 billion (25%)
• 100% unlock for token sale participants

Sources have also suggested that the platform is considering a revenue-sharing mechanism for PUMP and using 25% of protocol revenue for conducting regular token buybacks.

An Assessment of the True Potential and Market Position of Pump.Fun

The memecoin launchpad behemoth’s token sale announcement triggered various reactions from Crypto Twitter, receiving its share of both bull and bear arguments, alongside support and criticism. Below, DWF Ventures presents arguments from each side to provide a balanced view.

Bull Arguments

1. Actively revenue-generating: Pump.fun is one of the few top revenue-generating protocols, having generated close to $700 million as of June 18, 2024, and holding a top 5 position amongst all projects by 30-day revenue.
2. Significant market share and activity: Pump.fun holds a significant market share and activity, currently ranking as the top memecoin launchpad by daily tokens deployed and the leading DEX by daily volume on Solana, despite the presence and surfacing of rivaling Solana memecoin launchpads. Pump.fun secures two positions among the top-5 for applications and contracts by 30-day gas fees paid as well, contributing to the largest share of activity by any application on Solana.

1. Buyback-driven buy pressure: If the buyback mechanism is confirmed, a portion of protocol revenue will be used for buybacks, creating consistent and significant buying pressure following the Token Generation Event (TGE), which can help support the PUMP token's value over time.
2. Lower-risk memecoin exposure: Buying Pump.fun’s tokens could be seen by many crypto investors as a convenient and lower-risk way to gain exposure to Solana memecoins, resembling an index fund in its structure and approach.

Bear Arguments

1. Limited upside: Regardless of revenue numbers, a massive $4 billion valuation greatly limits upside for participants. The sheer size of the targeted raise amount has also raised doubt surrounding the team’s intentions, with some retail participants citing concerns of being used as exit liquidity.
2. Volatility post-TGE: If the rumours are true, a complete unlock at TGE alongside potential profit-taking from early investors and airdrop recipients, with a $400 million token sale valuation, could result in major volatility for PUMP early on. It might be beneficial for retail participants to remain sidelined until price action is more stable.
3. Sustainability of revenue: Daily protocol revenue has already decreased from its highs in late 2024 to early 2025. The reliance on revenue and potential buybacks in valuation considerations may be overly optimistic, given the uncertainty surrounding the sustainability of these earnings.
4. Regulatory uncertainty: While the United States regulatory scene has recently relaxed its crypto-related policies, this has been largely limited to stablecoins and Decentralised Finance (DeFi) protocols. Memecoin launchpads like Pump.fun are still very much still within a regulatory grey area.

Valuations and Future Outlook

On top of bull and bear arguments, DWF Ventures refers to pre-market behaviour and valuation comparisons. 

Aevo has already enabled pre-launch trading for PUMP, and the token currently trades at a $5.85 billion FDV. This could indicate the majority of traders are perceiving the token to be undervalued at the token sale’s $4 billion FDV. Other teams, like Messari, have also built models attempting to value the token based on existing and projected metrics.

Pump.fun’s positioning with regard to streaming platforms could also present some untapped opportunity. Having reintroduced livestreams and implemented creator fee sharing, the platform could potentially disrupt major streaming platforms like Twitch and TikTok as adoption grows. 

What are the unique selling propositions? The platform enables creators to start monetising from day one through token issuance and fee sharing. Additionally, new creators have the opportunity to gain visibility from traders actively searching for new launches on the platform. Check the table below for a comparison of creator incentives between traditional streaming platforms and Pump.fun:

Pump.fun’s mobile app, launched on 14 February 2025, has also shown the team's active effort in improving accessibility and user experience, equipped with tabs that allow users to navigate through trending launches, the latest news, and live creators. Now available for download on both the Apple App Store and Google Play Store, the mobile app could serve as a potential catalyst for further mainstream adoption and its path to disrupting traditional platforms. 

Other Considerations

Last but not least, it’s also important to take into account areas where uncertainty and doubts still exist. In the case of the PUMP token sale, these include:

• Final tokenomics and airdrop allocations
• Unlock/vesting terms for public and private sale participants and airdrop recipients
• Final token sale details and exclusive participation criteria, if any
• Potential for CEX listings
• Future roadmap 

Conclusion

Overall, the PUMP token sale presents an attractive opportunity for retail crypto investors to gain exposure to not only a strong revenue-generating platform such as Pump.fun but also one that has emerged as a dominant market leader in two sectors as of June 2025. 

With that being said, this is not without risks. PUMP’s potential extreme volatility can be expected at TGE, unless more details are released in the coming days regarding unlock tranches and the airdrop. It will also be important to observe how the PUMP token sale impacts on-chain markets. While an airdrop valued at an estimated $400 million represents a significant liquidity injection, major price swings could leave many retail participants facing losses.

Important Disclaimer: This research is intended for general informational purposes only and should not be considered as financial advice. We strongly advise conducting your own independent research and consulting with a qualified financial professional before making any investment decisions.

The DWF Ventures team continues to follow developments in the memecoin and the DeFi space, recognising the potential for innovation and growth within platforms like Pump.fun. If you are building in the memecoin or blockchain sectors, connect with our crypto venture capital fund to discuss potential opportunities.