Pump platform token issuance sparks market controversy

Recently, a well-known MEME token issuance platform announced the launch of its platform token, attracting widespread attention and discussion in the market. The platform plans to issue a total of 1 trillion tokens, with 33% allocated for token issuance fundraising. The unified pricing for the public and private fundraising rounds is set at $0.004 per token, with a total valuation reaching $4 billion. It is worth noting that these tokens will be fully released upon issuance, which means there may be a potential selling pressure of about $1.32 billion after the opening.

The timing of this token issuance is highly questioned. The current market is facing liquidity tightening and low sentiment, while the platform, as a leader in the MEME launch sector, has seen a significant decline in daily income and user activity compared to its peak period, and its market share is gradually being eroded by emerging competitors. In this context, its high valuation public offering is generally considered to have structural problems: the token lacks actual value support, there is significant initial selling pressure, the team's unlocking plan lacks transparency, and it has clearly overdrawn its valuation during the down cycle of altcoins.

Since the platform went online in January 2024, it has accumulated nearly $670 million in revenue and once monopolized the dominant position of a certain public chain ecosystem MEME token issuance platform. However, just as its Token was about to be issued, a competitor named letsbonk emerged strongly. Letsbonk surpassed the platform with 15,600 Token issuances compared to the platform's 11,500, achieving a market share of 49.8%, surpassing the latter's 40.9% for the first time. Although the platform subsequently regained its position as the market leader, this experience of being surpassed has raised doubts about its monopoly status in the market and highlighted the risk of potential replacement in the short term.

The allocation plan for the newly issued tokens is as follows:

• 33% for token issuance
• 24% allocated to community and ecosystem plan
• 20% allocated to the team
• 2.4% for ecosystem fund
• 2% for the foundation
• 13% to existing investors
• 3% allocated to live streaming
• 2.6% for liquidity and exchange

The specific arrangements for token issuance include:

• 33% of the total supply for sale, with 18% for private placement and 15% for public offering.
• The fundraising price is uniformly set at 0.004 USD/coin
• Issuance time is from July 12 to July 15, 2025
• Participants must complete KYC certification, and residents of certain regions are prohibited from participating.

It is worth noting that the only purpose of this Token is declared to be the promotion of the platform, and it does not possess rights such as equity, profit rights, voting rights, or platform fee sharing. This design has raised market skepticism about its intrinsic value.

In contrast, the token mechanism design of the competitor letsbonk has more advantages. Although its tokens also do not grant holders platform equity, it has constructed a strong value support logic by introducing an economic cycle and deflationary model. For example, a portion of the transaction fees is used to repurchase and burn tokens while injecting into the liquidity pool to enhance liquidity depth.

Overall, this platform's token issuance faces many challenges:

1. The valuation of 4 billion dollars is significantly higher than that of competitors, raising questions in the market.
2. The token model lacks basic economic rights, making it difficult to incentivize long-term holding.
3. The overall liquidity of the altcoin market is tight, which is not favorable for high-valued new tokens.
4. The subscription scale of the primary market is too large, and there may be a serious lack of buying power in the secondary market.
5. Unlocking a large number of tokens upon opening may intensify short-term price pressure.

The future performance of the token will largely depend on whether the project team can timely build a more sustainable token value system and reinforce its market position and user confidence through product innovation or ecological integration.