Pump.fun to Launch New Token with $1 Billion Target: Community Reacts

Pump.fun, a memecoin launchpad built on Solana, is reportedly preparing to launch its own token with a potential raise of $1 billion. The new token is said to have a valuation of around $4 billion, though the platform has not officially confirmed these plans.

Launch Timing and Details Still Uncertain

Pump.fun has become a popular destination for users wanting to create their own memecoins with minimal effort. Now, the platform appears to be expanding its offering by preparing to launch its own native token. The upcoming sale is expected to be open to both institutional investors and retail participants. 

While no official announcement has been made, a post on X by a pseudonymous user yesterday suggested the token could be released within the next two weeks. It remains unclear whether the launch will take place directly on the Pump.fun platform or through a different channel.

According to Blockworks, which reported the news citing two anonymous sources familiar with the situation, there are still no clear details on the token’s structure, its intended use, or how it will be distributed, leaving many questions around the upcoming Pump.fun token sale.

A Rapid Rise in Popularity and Revenue

Since its debut in January 2024, Pump.fun has attracted widespread attention for lowering the barrier to entry for those interested in launching meme-based tokens. The site allows users to create coins quickly and without needing technical know-how, driving a wave of user engagement.

Users have created nearly 11 million tokens on the platform, with a combined market capitalization estimated at around $4.5 billion. At the same time, Pump.fun has reportedly generated over $700 million in revenue.

Despite its commercial success, the model has also raised eyebrows in parts of the crypto community. While the platform has enabled mass participation, concerns have been raised about the actual value and sustainability of many of the tokens it has helped produce.

Planned Pump.fun Token Launch Raises Questions

Ash Crypto, a crypto commentator on X, criticizes the platform’s direction. He claimed that Pump.fun has damaged the crypto space by shifting investor attention from genuine altcoin projects to speculative meme tokens. According to him, the platform collected $700 million while the vast majority—99.99%—of participants ended up in the red.

Similarly, crypto influencer RK Gupta was also critical of the upcoming token sale. According to his post, the vast majority of tokens launched via Pump.fun have failed to retain any meaningful value. Gupta argues that smaller investors have often found themselves holding assets that are no longer in demand, while the platform continues to benefit financially.

Others in the community have taken a more reserved position but still question the rationale behind introducing a new token. They point out that a product generating substantial revenue may not require a native token unless it contributes tangible utility to users. Some have warned that market interest may spike temporarily during the launch but could drop significantly after early momentum fades.

Ongoing Legal and Regulatory Pressure on Pump.fun

While the token launch remains unconfirmed and largely speculative, Pump.fun is still grappling with unresolved regulatory issues. Earlier in the year, the platform became the target of legal action in the United States. A class action suit was filed by Diego Aguilar, who claimed he suffered financial losses after trading memecoins created via the platform—specifically FWOG, FRED, and GRIFFAIN.

The lawsuit accuses Pump.fun of working with influencers to promote and distribute unregistered securities. It also raises concerns about the platform’s involvement in schemes resembling pump-and-dump operations. Also, the platform has been forced to restrict access to UK users after the UK’s Financial Conduct Authority (FCA) issued a warning against its operations.

Though these legal developments are not directly tied to the current token raise, they continue to shape how the platform is perceived by investors and watchdogs alike, as past crashes still linger.