Recently, the topic that has sparked heated discussions in the digital asset field is the token issuance plan of the Pump.fun platform. On July 9th, the platform officially announced the launch of the PUMP Token, with a total supply of up to 1 trillion coins, of which 33% will be used for the ICO.

The issuance price of the PUMP Token is set at $0.004 each, which gives Pump.fun an overall valuation of an astonishing $4 billion. It is worth noting that these tokens used for fundraising will all be released after the IEO, which means the market may face a potential selling pressure of up to $1.32 billion.

As of July 11, the price of PUMP in pre-market trading on Hyperliquid and Binance has risen to about $0.0051, representing a premium of around 22% over the issuance price. However, behind this seemingly optimistic increase, there is a pervasive atmosphere of concern in the market.

Currently, the entire cryptocurrency market is facing dual pressures of liquidity tightening and low sentiment. As a leader in the MEME launching platform, Pump.fun's daily revenue and user activity have significantly declined from their peak, and its market share is gradually being eroded by emerging competitors.

In such a market environment, the high valuation public offering of Pump.fun has sparked widespread skepticism. Critics point out that the PUMP Token lacks actual value support and faces significant selling pressure in the early stages. Meanwhile, the project's team's token unlocking plan lacks transparency, and the $4 billion valuation appears overly optimistic in the current market cycle.

What worries investors even more is that the Pump.fun team has previously sold off the platform's fee income directly for cash, rather than using it to give back to the community. This practice has led many to question whether this high valuation fundraising resembles more of an exit strategy for the team, rather than focusing on the long-term development of the project.

Despite the significant attention that the issuance of the PUMP Token has brought to Pump.fun, it remains uncertain whether it can stand out in the fiercely competitive cryptocurrency market. Investors need to keep a clear mind when participating in such high-risk projects and thoroughly evaluate the potential opportunities and risks.