Community analysis on Pump.fun ICO reveals several red flags
By Reel Coverage Jul 09, 2025
Pump.fun announced its forthcoming initial coin offering (ICO) on X, leaving many puzzled if this is a golden opportunity or a max extraction event.
With 1,000,000,000,000 or 1 trillion supply (1T), 33% of the $PUMP token will be offered for sale across Pump.fun partner exchanges on Saturday, July 12, 2025.
Pump.fun took to X on July 09, 2025 to announce the launch of the official native Pump.fun token, $PUMP, highlighting its role in delivering value to the Pump.fun community and incentivizing the ecosystem that continues helping the platform succeed.
Pump.fun also revealed plans to kill existing social platforms like Facebook, TikTok and Twitch, emphasizing Pump.fun’s role in enabling creators, traders and startup founders tap into a global network of instant money & attention.
“
we're building pump fun to replace existing social platforms with one that gives instead of takes
whether you’re a trader, creator, startup founder, or anyone else, pump fun will allow you to tap into a global network of instant money & attention
”
Pump.fun via X(formerly Twitter)
Pump.fun ICO and listing will happen on partner exchanges including Bybit, Kraken, Bitget, Mexc, KuCoin and Gate.io, with US and UK users barred from initial public sales.
$4 billion fully diluted valuation (FDV): community analysis
With a sale price of $0.004 per $PUMP token, the leading Solana token launchpad’s native token would have a $4 billion fully diluted valuation (FDV) at launch, placing $PUMP in the top #100 crypto assets by market capitalization as ICO allocation will be fully unlocked at launch, giving $PUMP an above $1 billion marketcap.
With $715M+ lifetime revenue, according to on-chain data from DefiLlama, Pump.fun’s token $4B FDV is roughly 5.6x its value generation, highlighting a valuation multiplier well within traditional Fintech ranges.
That said, community sentiments and analysis greatly leans on Pump.fun’s ICO being a giant extraction event, popularly phrased “the last extraction/milking event.”
This comes despite Pump.fun’s token distribution showing a 24% allocation to community and ecosystem initiatives, as seen in the chart above, which includes an anticipated airdrop as confirmed by Pump.fun’s ICO announcement post on X.
The community considers the July 12th Pump.fun ICO less of a growth raise and more of a final cash grab.
That said, not all sentiments are bearish. A post from X user @Oxleegenz highlights that Pump.fun’s token launch was an investor demand and is designed to bring back liquidity to Solana, adding that the token is Pump.fun’s next product, potentially being a yield-bearing purchase from platform revenues.
