Weekly Market Highlights Review [6.3 - 6.7]: Pump.Fun issue coin and Analysis of South Korea's New Policies

This week, the cryptocurrency market has shown an overall oscillating pattern, mainly characterized by rebounds and pullbacks. On the positive side, the ecosystem tokens of a certain trading platform have generally risen due to liquidity promotion activities, while the phone conversation between Trump and Xi Jinping has released signals of reconciliation, and Circle's listing has performed well under the stablecoin policy. The negative factors are mainly concentrated on steel tariffs and the verbal exchanges between Trump and Musk on Friday, while the interest rate cut has yet to be realized. This article will focus on the Pump.Fun issue coin plan and the trends in cryptocurrency policies in South Korea and Singapore.

1. Pump.Fun issue coin plan

Recently, it has been reported that Pump.fun plans to conduct a $1 billion token sale at a valuation of $4 billion, targeting both public and private investors, with the token potentially being issued within the next two weeks. This news has quickly sparked widespread discussion in the market.

1.Issue Coin Background

• Market Liquidity Changes

At the beginning of 2025, two large-scale meme coin issuance events quickly consumed the market liquidity at that time. Data shows that a considerable portion of the buyers of these new coins were users who were first exposed to cryptocurrencies. These events led to a decline in the prices of other well-known coins and triggered panic in the market, causing many investors to withdraw their investments, resulting in an overall decrease in liquidity.

• Platform competition intensifies

Since last year's meme craze, Pump.Fun has basically held a dominant position in the Solana meme track, but its business strategy and impact on the Solana ecosystem have sparked controversy, leading other platforms to join the competition and swiftly erode Pump.Fun's market share. Data shows that Pump.fun's average daily market share once dropped sharply to 56.2%.

• The decline of the meme craze and a sharp drop in income

The trading volume on Pump.fun has sharply decreased from $118.9 billion in January 2025 to $25.1 billion, a drop of 79%. The platform's daily revenue has also significantly declined, generating only $46.6 million in May, down 42.85% from $137 million in January. This indicates that market interest in speculative meme coins is rapidly fading.

2.Valuation Analysis

The high valuation of Pump is mainly based on its cash flow revenue. Since its launch in March 2024, the cumulative revenue has approached 700 million USD. Using the P/S (Price/Sales ratio) as a valuation metric, Pump.fun's P/S ratio is 9.1, based on a valuation of 4 billion USD and an annualized revenue of about 440 million USD.

Generally, the reference range for the P/S ratio is as follows:

• Undervalued range: P/S < 5
• Reasonable range: P/S 5-20
• Overvalued range: P/S > 20

Comprehensive analysis shows that the current valuation of 4 billion carries a high risk, especially in the context of sustained low revenue or intensified competition. It is recommended to closely monitor its revenue recovery, the execution of token sales, and the overall performance of the Solana ecosystem.

2. Policy Regulatory Trends

1. South Korea's New President's Cryptocurrency Policy

South Korea's new president Lee Jae-myung promises to promote the development of crypto ETFs and the Korean won stablecoin:

• Promote the legalization of spot cryptocurrency ETFs to attract investors and facilitate the integration of the Korean cryptocurrency market with the global market.
• Plan to issue a stablecoin pegged to the Korean Won, aimed at curbing capital outflow, enhancing South Korean financial sovereignty, and providing local investors with a more stable investment tool for cryptocurrency assets.
• Guide national institutions such as the National Pension Fund to allocate crypto assets, which may significantly increase market size.
• Optimize the regulatory environment, plan to reduce the tax burden and transaction fees on crypto trading through policy adjustments to attract more market participants.

2. Singapore Tightens Crypto Regulations

The Singapore financial regulatory authority announced a ban on unlicensed overseas cryptocurrency services:

• Strict DTSP licensing requirements: All entities registered or established in Singapore, regardless of whether they provide digital token services domestically or internationally, must obtain a DTSP license issued by MAS.
• Extensive definition of "place of business": the scope is very broad, and MAS has the final interpretation right.
• Digital token services are broadly defined: covering token issuance, trading, custody, consulting, and publishing related analysis or research reports.
• No transition period and strict approval: The new regulations will take effect directly on June 30, 2025, and MAS stated that it will approve DTSP licenses "with utmost caution."

This regulatory shift marks Singapore's transition from "crypto-friendly" to strong regulation, ending the era of regulatory arbitrage. In the short term, small and medium-sized projects may withdraw or merge with large institutions due to high compliance costs. In the long term, the new regulations may enhance market trust, but could weaken Singapore's appeal as a Web3 innovation hub.

3. JPMorgan Accepts Bitcoin ETF as Loan Collateral

JPMorgan plans to allow clients to use Bitcoin ETFs as loan collateral, a move that will significantly enhance the financial attributes of Bitcoin:

• Transform Bitcoin from "static asset" to "liquid capital", enhancing its capital utilization rate, valuation premium, and overall market demand.
• Provide investors with new ways to utilize funds and optimize investment strategies.
• Indicates that crypto assets are being recognized as legitimate investment tools by mainstream financial institutions, which may encourage other banks to follow suit and further enhance institutional acceptance of crypto assets.