Once again, popular Solana launchpad, Pump.fun is at the center of a huge controversy. On June 3, speculation intensified about a potential token launch from the launchpad.
According to a post by a community member, the token launch is scheduled to commence in two weeks. The plan is to allocate 10% of its total supply to community members through a airdrop campaign.
Despite the intensifying rumor, Pump.fun so far has remained silent on the issue without any information about the tokenomics or use case. More so, this isn’t the first time Pump.fun will attempt to launch a native token. In February 2025, the project team considered launching a token using a Dutch auction.
The decision of US President Donald Trump and his wife to launch their meme coins compelled Pump.fun to drop the plan. During that period, the meme coins from the two attracted massive attention and fetched good liquidity.
While Pump.fun is yet to confirm or debunk the news, a report that cited different anonymous sources said the project team is working on the plan. The report stated how the project team intends to raise $1 billion at a $4 billion valuation through public and private sales of the token.
However, community members received the news about the token launch with mixed reactions. Most significantly, the rumor sent a shockwave across the Solana ecosystem as most tokens on the network recorded a massive downturn.
Background insight on Pump.fun
Pump.fun debuted in January 2024 as a Solana-based memecoin launchpad that supports individuals in creating their cryptocurrency. What contributed to the success of the project is how it empowers users without expertise in coding or cryptography to easily create new tokens and trade them on the platform.
Initially, Pump.fun used Raydium as its decentralized exchange before building a native platform that allows users to trade their newly launched token even without providing liquidity. That platform charges a flat fee of less than $2 worth of SOL and 1% of the trading fees, a policy that further contributed to the rise of Pump.fun.
So far, more than 11 million cryptocurrencies have launched on the platform with up to $4.5 billion market cap. Additionally, the launchpad has generated more than $700 million in overall revenue adding a significant number to the total trading volume on the Solana network.
Also, by extension, Pump.fun played a significant role in the emergence of Solana as a hot hub for meme coins.
The Controversy
Across the crypto community, Pump.fun is under serious scrutiny over the proposed token launch. The project is facing questions on transparency due to how the platform has denied launching the token in the past and has continued to remain silent.
Also, the tokenomics and use case of the token is still unknown leading to more concern that the announcement may be a false alarm. A host of community members bemoaned how the project aims to raise $1 billion, which is unrealistic considering the current state of the market.
Similarly, there is skepticism about how Pump.fun has been long associated with pump-and-dump tokens. Community members are divided as some are arguing that the lack of credible details about the token means it is a high-risk investment.
Meanwhile, various degrading acts relating to the platform also fueled the controversies. Some months back, a trader during a livestream shot himself after losing $500 to a meme coin that suffered a rug pull on the platform.
Initially, Pump.fun introduced the live stream feature to enhance the visibility and hype for tokens launched on the platform. Some users even went as far as threatening to kill themselves just to pump their tokens.
These degrading acts compelled Pump.fun to discontinue the feature late last year. However, the platform has launched the live stream functionality, introducing strict restrictions to prevent its abuse.
Conclusion
Without a doubt, it is still hard to pinpoint if truly Pump.fun plans to launch a token due to the silence from the project team. The prolonged stillness has created more chaos as community members are seeking answers to questions relating to the credibility of the project.
How the news caused Solana tokens to plunge didn’t sit well with some community members who emphasized that the announcement came at the wrong time. Consequently, they argue that launching the token in a bearish crypto season is entirely wrong timing.
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