Pump.fun, a launchpad built on the Solana blockchain, has officially announced the launch of its native token, PUMP, through an Initial Coin Offering (ICO) scheduled for July 12. The token will have a total supply of 1 trillion tokens, with a strategic allocation plan catering to institutional investors, the community, and internal stakeholders.
The ICO will see 33% of the total PUMP token supply being sold, with 18% allocated for institutional buyers in a private sale and 15% available to the public on major exchanges like Kraken, Bybit, KuCoin, Gate.io, Bitget, and MEXC. Participants in both the private and public sales will be able to purchase the token at a fixed price of $0.004 per token, with no vesting period for the tokens acquired during the ICO.
The remaining token supply will be distributed as follows: 24% for community and ecosystem initiatives, 20% for the team, 13% for existing investors, 2% for the Pump.fun foundation, 2.4% for the ecosystem fund, and 2.6% for exchange liquidity. Notably, 3% of the total token supply is specifically earmarked for live streaming activities.
The public sale is set to end once 150 billion tokens are sold or by 14:00 UTC on July 15, whichever comes first. Participants in the token sale can expect to receive their tokens shortly after the sale concludes, but there will be a 48 to 72 hour lock-up period before the tokens become tradable. It is important to note that residents of the US and UK are not eligible to participate in the ICO.
Despite the structured token distribution plan, Pump.fun has faced criticism from some members of the crypto community. Crypto researcher Rex has voiced concerns about the tokenomics, labeling them as exploitative. He pointed out that over 40% of the token supply is allocated to the team, raising questions about the fairness of the distribution.
Looking towards the future, Pump.fun has outlined plans to transition from a launchpad model to a decentralized social platform. The platform aims to offer an alternative to traditional social media platforms like Facebook, TikTok, and Twitch by rewarding users instead of exploiting their attention. Co-founder Alon Cohen highlighted the platform’s vision of integrating social trends into on-chain trading and revolutionizing livestreaming by incentivizing viewers to discover talent early and enabling creators to monetize more effectively.
In conclusion, Pump.fun is on a mission to create a new space for crypto-native engagement within the social media landscape, fostering vibrant communities, movements, and cults. This ambitious goal sets the stage for Pump.fun to carve out a unique niche in the ever-evolving crypto ecosystem.