Pump.fun’s $4 Billion Valuation Questioned Amid Token Utility Concerns

Pump.fun's PUMP token faces mounting skepticism as analysts highlight its lack of fundamental utility. The project's $4 billion valuation appears increasingly untenable without governance features, revenue sharing mechanisms, or substantive use cases beyond speculative trading.

BitMart Research reveals alarming tokenomics: 33% of the supply unlocked immediately at launch created $1.32 billion in potential selling pressure. The team's $800 million allocation—representing 20% of total supply—has drawn particular criticism for its unprecedented scale at such an early stage.

Market conditions exacerbate these concerns. The token launched during depressed on-chain liquidity and weakening sentiment, raising questions about the team's timing. Industry observers note the project's declining market share as competitors gain ground in the meme coin infrastructure space.