It seems like whole Twitter is hating Pump Fun aka the blood sucker of Solana. But what if I tell you that $PUMP and Pump Fun could actually be bullish for Solana? Let me explain.

The Time before and after Pump Fun

Pump Fun was created in early 2024 to fix the problem of quick permissionless token launches.

The platform then gained traction in the second half of the year where every second tx on Solana was already related to Pump Fun.

Traders had fun, flexed their PnLs on the timeline, and companies started to build on top of Pump Fun - Life was good.

But success attracts criminals and it didn't take long until most people started to lose instead of win.

The scapegoat? Of course, the company that provides the platform.

As this would not be enough, Pump Fun got rich. Not just lambo rich!

Until today, they have accumulated $729M and sold most of it, keeping the stables on Kraken.

So, what could be worse than getting scammed on a platform while these guys sell you coin of your biggest bag?! An enemy was born.

Not entirely wrong:

Even though Pump Fun is a permissionless platform, I agree that not everything can be justified by decentralization, such as racism.

Regarding scams and fraud, Pump Fun has often turned a cold shoulder. However, bad actors always find a way. Similarly, you can't blame your telecom company for a virus if you're downloading the wrong things from the internet.

2. Dumping SOL and it's price.

Completely off:

Pump Fun sold approximately $600M in SOL, which accounts for less than 0.05% of the total annual SOL sell volume—literally peanuts! Meanwhile, other protocols like Phantom or Photon do the same with no blame?

3. Not giving back to the Solana ecosystem.

On point:

Compared to protocols like Jupiter, BONK, or Phantom, Pump Fun isn't active in the Solana ecosystem at all. Do they need to be? No. Would it be nice? Yes.

Pump Fun is far from being perfect but personally I still think Pump Fun was net positive for Solana.

And then there will be this new token... final extraction or biggest airdrop ever?

Most people see in $PUMP the nail in the coffin. Their argument? The timing. Pump Fun's revenue is down, and a token could be the final extraction.

But also here most people don't zoom out as they would otherwise see that most protocols such as Jupiter or Phantom are down in revenue too.

Another argument is that they won't just drop a token; no, they raise money first and not little - 1 billion United States dollars!

So far we have zero confirmed details. All of this are just rumors. But $PUMP could launch very soon, in just around two weeks.

What grabs attention is that they plan to raise $1B at $4B Valuation even tho they are one of the wealthiest protocol.

Honestly, my first thought was the same as you've probably had. Why do they need even more money?! But let me explain why these tokenomics are not just bullshit.

Raising $1B with the current sentiment around Pump Fun won't be easy. But if someone could, it's probably Pump Fun. What does it mean for the investors? Probably not more than a 1.5x-3x as $4B valuation is extremely high.

But why do they sell tokens in the first place? $PUMP must be a success or the whole platform will slowly die. If you just drop a few tokens at TGE, it will be like any other low float high FDV launch and people start to dump their airdrop.

With a presale, they can already add a lot of tokens at TGE. Buyers will hold tokens more likely. So there is a way to make everyone happy with high float and high FDV.

If they then add utility (such as buyback, revenue sharing, creator and holder revenue, or more) this thing could fly.

Of course, this is a very optimistic prediction but it clearly shows the way what could make this token drop to one of the biggest ever in crypto.

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