Pump.fun's high valuation and coin issuance have sparked controversy, with polarized market reactions.

Recently, Pump.fun officially announced that it will launch the initial coin offering (ICO) for its native token PUMP on July 12 and promised a large-scale airdrop. This news has sparked widespread discussion and controversy in the cryptocurrency market.

According to official disclosures, the total supply of PUMP tokens is 1 trillion pieces, of which 33% is used for ICO sales, 24% is reserved for community and ecosystem plans, 20% is allocated to the team, 13% to existing investors, and the remainder is allocated to the ecosystem fund and foundation. This ICO will issue 150 billion PUMP tokens at a unit price of 0.004 USDT, with an expected total financing of 600 million USD, corresponding to an overall project valuation of approximately 4 billion USD.

The public offering will be conducted through multiple trading platforms, and participants can use assets such as bbSOL, SOL, or USDT to purchase. It is worth noting that a major trading platform announced the presale trading of the PUMP/USDT perpetual contract before the PUMP public offering. The public sale will continue until the tokens are sold out or until July 15th, 14:00 UTC. However, users from the United States and the United Kingdom cannot participate in this ICO due to compliance issues.

The founder of Pump.fun, Alon, subsequently revealed the project's key development strategies for the future, including improving the quality, sustainability, and diversity of the already launched coins, strengthening investment in the social sector, enhancing user experience, and expanding the team size.

However, Pump.fun's decision to initiate a public offering with a valuation of $4 billion has sparked strong doubts within the community. Some argue that the current liquidity and sentiment in the MEME market have significantly declined, and Pump.fun is not only facing a sharp drop in daily revenue and active users but has also been surpassed by competitors in market share. In this context, such a high valuation is believed to potentially exacerbate market weakness.

Some industry insiders have harshly criticized this ICO. Some pointed out that Pump.fun's governance structure is opaque, the team's release terms are unclear, and it has excessively overdrawn its valuation during a market downturn. There are also views that the team has amassed huge wealth through transaction fees, and this ICO resembles "exit liquidity" rather than a long-term development plan.

However, there are also some voices that hold a positive attitude towards Pump.fun. Some believe that it is unfair to single out Pump.fun for criticism compared to other competitors. They argue that Pump is a profitable company that has demonstrated delivery and growth capabilities, and compared to some overvalued projects without real users, Pump.fun may have more investment value.

This controversy actually reflects the common dilemma facing the current MEME market: a retreat in sentiment, tightening liquidity, and over-leveraged valuations. Nevertheless, there are still many investors in the market willing to participate, and new projects continue to emerge.

For potential investors, it is essential to exercise extra caution when participating in such high-risk ICOs, thoroughly assessing the project's long-term development potential and risk factors. When making investment decisions, it is advisable to adopt a phased participation strategy and closely monitor market trends and project progress.