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Are we again?
BTC is at a brand new all-time excessive of $121k, ETH is again above $3k, and Aave simply crossed $50 billion in TVL.
However in all probability most important of all is the return of preliminary coin choices (ICO). This previous Saturday noticed Pump’s ICO elevating $500 million at a $4 billion FDV.
I say “Saturday,” nevertheless it was throughout in 12 minutes. 125 billion PUMP tokens (12.5% of whole token provide) have been all offered for $0.004 apiece.
As of this morning, PUMP is buying and selling at 0.017, in order that’s a 325% revenue when you snagged it within the ICO.
Who have been the consumers?
10,145 distinctive addresses aped in at a remarkably equitable median worth of $537.
Apparently, extra customers got here from DEXs than CEXs. About 3,878 Pump traders got here from Solana DEXs together with Raydium, SolFi and Jupiter — in comparison with 2,525 traders from CEXs.
Numerous Bybit customers did not obtain their PUMP allocations because of an “sudden API delay,” in order that they’ll be getting refunds and a tragic $20 spot price coupon as a substitute.
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The important thing takeaway right here, I feel, is: Onchain infrastructure has by no means been extra streamlined and efficient.
Pump’s technique
Pump’s $500 million ICO is massive, however not that massive. Let’s put that into context.
EOS’ (in the present day known as Vaulta) ICO in 2017-18 nonetheless holds the file for the largest-ever ICO, at a whopping $4.1 billion.
Telegram’s 2018 ICO additionally raised $1.7 billion in two phases. The GRAM tokens offered have been finally refunded because of regulatory troubles, and the app’s backers later created TON.
In comparison with Ethereum, nevertheless, Pump’s ICO is massive. Ethereum raised ~$18 million in bitcoin throughout 42 days in 2014.
These are clearly not apples-to-apples comparisons given the variations in time interval, market maturation, product kind, and so on.
However the largest distinction of all is that in contrast to the trade’s previous ICOs, Pump isn’t a mere proof-of-concept — the memecoin launchpad is a money cow.
Pump has made $786 million in cumulative revenues since its inception in January 2024. That’s a staggering $377 million in annualized revenues for the two-year-old firm.
Moreover, Pump is allegedly planning to share 25% of revenues with token holders, my colleagues Katherine and Jack reported final week.
“There’s a fairly excessive likelihood that the PUMP token may have some worth accrual mechanism,” Blockworks Analysis’s Ryan Connor informed me.
Pump desires to go after the social media market. Within the group’s personal phrases: “our plan is to Kill Fb, TikTok, and Twitch. On Solana.”
