Latest news with #AlonCohen
Mint
14 hours ago
- Business
- Mint
Pump.Fun's $1 Billion Token Sale Raises Liquidity Concerns for Memecoin Universe
(Bloomberg) -- decision to raise $1 billion is sparking concern that a token sale by the most popular platform for creating memecoins risks siphoning demand away from the hundreds of coins issued daily through the website. The platform, which is based on the Solana blockchain, is still in the early stages of the token offering, according to a person familiar with the plans who asked not to be named discussing private company information, Bloomberg News reported Tuesday. Alon Cohen, co-founder of didn't respond to requests for comment. While details of the sale are not clear, the offering would rank among the largest ever in crypto. The last major token sale was the January debut of the Trump memecoin, which instantly generated billions of dollars in trading volume within a few days. The broader memecoin sector saw a drop in trading when the Trump token was launched, as speculators sold other crypto assets to buy President Donald Trump's official token. 'could be a drain on liquidity,' said Ryan Watkins, co-founder of crypto investment fund Syncracy Capital. 'The raise will take place over the course of a month. And I think during that month, any asset in the Solana ecosystem is vulnerable to being sold to fund that purchase.' which has been compared to the edgy 4chan social media network, allows users to quickly create, promote and sell memecoins, a type of token that has no intended utility but is often associated with jokes, memes and celebrities. The platform has been one of the biggest drivers of the explosive growth in memecoins and the attendant burst in activity on the Solana blockchain in the past year. Retail and professional investors alike have poured billions of dollars into the sector, and their quests for quick profits are seen as generating a lucrative stream of fees for founders. Other market participants also questioned the relatively high valuation of based on the token sale, which is set to be at a $4 billion fully diluted valuation, or FDV. The measure equals the current price times the total number of tokens expected to ever be in circulation. 'I would consider investing at $50 million FDV,' said Christine Fang, managing partner at Hong Kong-based crypto hedge fund PSE Trading. 'Not sure if the $4 billion valuation is justified, especially with the lack of liquidity overall in altcoins.' But with few details about the token sale, others said it's too early to make a conclusion. 'People are overly bearish on this, specifically because they don't know the details,' said Mert Mumtaz, co-founder and chief executive officer of Solana infrastructure project Helius. 'Pump is the main name behind memes today,' Mumtaz added. 'So if they raise a bunch of extra money from investors instead of users, I don't see why they wouldn't invest this money to grow the market beyond what exists today. I mean, their entire business relies on this.' More stories like this are available on
Bloomberg
15 hours ago
- Business
- Bloomberg
Pump.Fun's $1 Billion Token Sale Raises Liquidity Concerns for Memecoin Universe
decision to raise $1 billion is sparking concern that a token sale by the most popular platform for creating memecoins risks siphoning demand away from the hundreds of coins issued daily through the website. The platform, which is based on the Solana blockchain, is still in the early stages of the token offering, according to a person familiar with the plans who asked not to be named discussing private company information, Bloomberg News reported Tuesday. Alon Cohen, co-founder of didn't respond to requests for comment.
Arabian Post
2 days ago
- Business
- Arabian Post
PumpFun's Revenue Redistribution Plan Sparks Debate Amid $4bn Valuation
PumpFun, a Solana-based memecoin launchpad, has announced plans to distribute protocol revenue to $PUMP token holders through a buyback mechanism. This move marks a significant shift from the typical speculative nature of memecoins, aiming to provide tangible value to its community. However, the platform's ambitious $4 billion valuation and a targeted $1 billion raise have raised questions about the feasibility and sustainability of its revenue model. Since its inception in January 2024, PumpFun has facilitated the creation of over 6 million memecoins, positioning itself as a central player in the Solana ecosystem's resurgence following the FTX collapse. The platform's user-friendly interface allows individuals to launch tokens with minimal effort, contributing to a surge in activity that saw Solana's Total Value Locked surpass $5 billion by mid-2025. The proposed buyback strategy involves using a portion of the platform's revenue to repurchase $PUMP tokens from the open market, thereby reducing supply and potentially increasing token value. This approach is intended to reward long-term holders and align the interests of the community with the platform's growth. However, the lack of clarity regarding the specific revenue streams and the proportion allocated for buybacks has led to skepticism among investors and analysts. ADVERTISEMENT PumpFun's revenue primarily stems from a 1% swap fee on all token trades and a 1.5 SOL fee when a token 'graduates' by reaching a market cap of $90,000. While these mechanisms have generated substantial income—estimated at over $380 million—the sustainability of such revenue in the volatile memecoin market remains uncertain. The platform's reliance on continuous user engagement and token creation raises concerns about the long-term viability of its financial model. The announcement of the $1 billion raise at a $4 billion valuation has further intensified scrutiny. Critics argue that the valuation may be inflated, given the speculative nature of the memecoin market and the platform's nascent stage. Comparisons have been drawn to other DeFi projects that have faced challenges in maintaining high valuations without robust and diversified revenue streams. Community members have expressed mixed reactions to the buyback plan. Some view it as a positive step towards creating a more sustainable and value-driven ecosystem, while others question the timing and transparency of the initiative. The absence of detailed information about the buyback schedule, funding sources, and governance mechanisms has fueled debates about the platform's commitment to accountability and investor protection. PumpFun's leadership, including founders Noah Tweedale, Alon Cohen, and Dylan Kerler, has yet to provide comprehensive details addressing these concerns. The platform's history of rapid growth and controversial features, such as the now-suspended livestreaming service that allowed for unmoderated content, adds to the apprehension surrounding its governance and operational practices. The broader context of the DeFi and memecoin markets also plays a role in shaping perceptions of PumpFun's strategy. The memecoin sector has experienced explosive growth, with market capitalizations reaching unprecedented levels. However, this growth has often been accompanied by high volatility, regulatory scrutiny, and instances of market manipulation, leading to caution among institutional investors and regulators.
Yahoo
5 days ago
- Business
- Yahoo
Top Pump.Fun Ecosystem Tokens Tumble Amid Reports of $1B Fundraise
Fart-powered joke tokens suddenly weren't so funny for crypto traders on Tuesday. A basket of the largest ecosystem tokens faded from recent highs after Blockworks reported the Solana-based launchpad is pitching a $1 billion token sale that would value the project at roughly $4 billion. Sources told Blockworks the sale could close within weeks, though details on tokenomics remain launched on the platform slipped amid the news. Fartcoin (FARTCOIN), the largest Pump-launched token by market capitalization, dropped 7%. Peanut the Squirrel (PNUT), Moo Deng (MOODENG) and Goatseus Maximus (GOAT) gave back as much as 6%, while Alchemist AI (ALCH) — the big gainer on Monday — flipped red after an early 25% pop. The moves wiped about $150 million in aggregate value, trimming but not erasing the sector's outsized weekly gains. A billion-dollar raise means a new Pump token and, potentially, a fresh supply. Even if the deal channels cash back to users later, traders worry about a flood of 'farm-and-dump' flows hitting the very memecoins the platform helped create. Deeper concerns, however, spread across crypto circles on X as developers and traders questioned the need of a mammoth fundraise. 'Why does pump need to raise 1bn tho? how is it gonna invest that for growth if it already has made 675m and hasnt spent that either what are they planning to do with 1bn?,' DeFiLlama founder @0xngmi wrote. 'The Pump guys went through an accelerator, raised a small round, then proceeded to make almost a BILLION in revenue in 1 year and got a 4B valuation to raise another 1B,' said Mert Mumtaz, founder at Helius, 'Those are simply insane numbers in an insane amount of time.' Only three weeks ago tried to sweeten the pot users looking to issue tokens using the platform by handing 50% of PumpSwap fees — or five basis points of every trade — straight to token creators. At the time, founder Alon Cohen pitched the change as a way to eliminate rinse-and-dump behavior: If developers earn recurring fees, they don't have to dump their own coin on the community. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-02-2025
- Business
- Yahoo
Pump.fun's X Account Hacked To Promote Fake "PUMP" Token, Triggering $5 Million Market Cap Surge
On Feb. 26, 2025, the X account of a Solana meme coin launchpad, was hacked to promote fraudulent tokens, including a fake 'PUMP' token. The hacker posted a message claiming the token was the 'official governance' token of alongside a Solana contract address. Despite warnings that the token was concentrated among a small group of wallets, it quickly reached a $5 million market cap before rapidly crashing. The incident is part of a growing trend of social media hacks targeting the cryptocurrency industry. ZachXBT, an on-chain investigator, linked the attack to previous breaches, including those of Jupiter DAO and DogWifCoin. He speculated that social engineering tactics were likely used to compromise X accounts, though he emphasized that neither the nor the Jupiter DAO teams were at fault. The team confirmed the hack, with co-founder Alon Cohen urging users to avoid interacting with the compromised account. Cohen also mentioned that all security protocols had been followed and suggested that the hack may have been caused by an issue within X itself. The hacker didn't stop at promoting the fake PUMP token; they also pushed additional scam tokens called 'hackeddotfun' and 'HACKED.' has been one of the most active platforms for launching Solana-based meme coins, deploying over 8 million tokens since its debut. However, the hack follows a series of controversies surrounding meme coin launches. Notably, the LIBRA token launch in Argentina led to a $107 million rug pull, and since then the wider meme coin market has been cooling off. This attack highlights the vulnerability of cryptocurrency platforms to social media-based scams, particularly as the industry grapples with the aftermath of large-scale hacks. For instance, in January 2025, the Nasdaq X account was compromised to promote a fake meme coin that briefly reached a market cap of $80 million before crashing. Despite the ongoing investigation into the hack, team has not yet regained control of their X account. They continue to work on restoring the account's security while trying to prevent further scams from reaching their followers. The incident is another reminder of the ongoing cybersecurity risks in the crypto space, where hackers continue to exploit vulnerabilities to push fraudulent tokens and scam unsuspecting users.
