Pump.fun’s $4B Valuation Under Fire: Token Utility Questions Loom Large
Memecoin factory Pump.fun just hit a staggering $4 billion valuation—but the champagne might be premature.
Where’s the beef? Critics slam the platform’s thin token utility beyond speculative trading. 'Another case of vaporware market cap,' quips a hedge fund trader, adjusting his diamond-encrusted ledger.
The real test? Whether Pump.fun can pivot from being a meme-launching playground to building actual, sticky value. Otherwise, that $4B might evaporate faster than a shitcoin rug pull.
Downside of PUMP’s ICO
In a recent report, BitMart Research points out that Pump.fun, despite once being an industry leader, is facing serious doubts about its $4 billion valuation, especially as market share declines and competition intensifies.
The report highlights that the PUMP token lacks governance rights, revenue sharing, or practical utility, relying solely on brand momentum to sustain value. This weakness has investors questioning its sustainability.
According to BitMart, 33% of the total supply was allocated for fundraising for $0.004 per token, with all tokens unlocked at launch. This has created selling pressure worth up to $1.32 billion.
Moreover, Pump.fun’s launch of the PUMP token occurred amid weak market sentiment and declining on-chain liquidity.
X account, TheCryptoProfes, said that Pump.fun reserved $800 million in tokens for the team, equivalent to 20% of the total supply. This significant team allocation could lead to substantial selling pressure, threatening liquidity and investor confidence.
“They are paying themselves $800m… this is the BIGGEST team allocation I have ever seen on a presale, at the highest ever launch valuation. (Data on ICO Drops)” TheCryptoProfes commented.
Meanwhile, new competitors, particularly LetsBonk, threaten Pump.fun’s market share. LetsBonk surpassed Pump.fun with 16,797 meme coins launched in July 2025. While still in a leading position, PUMP’s high-risk token model has raised doubts about its long-term sustainability.
In terms of tokenomics structure, the platform’s token has no built-in economic rights. Pump.fun’s team has clarified that the token’s sole function is to promote the platform.
According to BitMart, this lack of value means PUMP is essentially a “narrative-only asset.” This discourages holders from maintaining a long-term commitment, weakening their connection to the platform.
Despite this, Pump.fun’s strong brand remains a key advantage. Many main exchanges, including Coinbase and Binance, have announced their support for PUMP. However, without improvements to its tokenomics, Pump.fun risks repeating the failures of past projects.
