Pump Fun’s Initial Coin Offering Summary

Memecoin platform Pump Fun’s initial coin offering (ICO) has concluded, and its PUMP token is now tradable on several exchanges.

The token was initially sold for $0.004 during the ICO and has now risen to approximately $0.0055, according to data from Binance-owned CoinMarketCap.

The initial sale, which took place on July 12, sold out in mere minutes, raising approximately $600 million.

Interestingly, despite the ICO requiring purchasers to go through a know-your-customer (KYC) process, analysis from Blockworks suggests that some wallets participated in the sale from dozens, or in at least one case hundreds, of addresses.

Blockworks highlighted that 88888FAoqY6JdSvz7fk1FPd6qjPTcCMGcS64GbwonLoE funded 500 different addresses that all participated in the sale, purchasing a total of $200,000 worth of PUMP tokens. This address had previously participated in other memecoin sales, including WUKONG.

The team behind the token claims a maximum supply of one trillion, with only one-third available during the ICO. A fifth of the total token supply is reserved for the team, with an additional 13% for pre-ICO investors.

The remaining tokens are designated for:
– Community and ecosystem initiatives — 24%
– Livestreaming — 3%
– Ecosystem fund — 2.4%
– Foundation — 2%
– Liquidity and exchanges — 2.6%

PUMP is advertised as the “native token” for Pump Fun, but its exact utility remains unclear. In one post on X, it’s claimed that “PUMP will grow the Pump Fun ecosystem by delivering value to its community and incentivizing the ecosystem that continues helping the platform succeed.”

However, it’s noted that they’re still “giving thorough consideration to utility mechanisms like fee rebates, token buybacks, or other incentives and promotions.”

Pump Fun is currently the target of a lawsuit from traders who have lost money on the platform. The platform’s livestream features have also been used controversially, including threats of violence and suicide.

Pump Fun’s co-founder, Dylan Kerler, is reportedly also behind a previous alleged rug-pull involving Ethereum Cash.