IOSG Founding Partner: Pump.fun's public offering seems more like the team seeking exit liquidity, as the project's and market's fundamentals cannot support the inflated valuation

ChainCatcher news reports that according to social media information, Jocy, the founding partner of IOSG, believes that this public offering by Pump.fun is more like participants acting as exit liquidity, making it a highly speculative gamble.

Jocy stated that since its launch in early 2024, Pump.fun has experienced explosive growth, with cumulative protocol revenue reaching approximately $700 million, becoming one of the most profitable projects in the cryptocurrency space. However, Pump.fun's daily revenue has decreased by 92% from its peak, currently standing at only about $500,000. The market value of the graduated project has dropped from several tens of millions of dollars to a freezing point of $50,000 to $100,000. Its market share has also been surpassed by competitor LetsBonk (holding 51%), with Pump.fun dropping to 39.9%.

From the perspective of token economics and risk exposure, this round of ICO targets retail investors (15%) and institutions (18%), selling a total of 33% of the tokens, corresponding to a financing amount of up to $1.32 billion. Along with past fee income, the http://Pump.fun team will hold nearly $2 billion in cash. This presents a highly unfriendly risk exposure for public investors:

• Opaque governance structure: The decision-making process is a mystery.
• Unclear release terms for team/investors.
• Overvaluation financing excessively overdraws future growth potential.

Jocy believes that the Pump.fun team has neither the willingness nor the ability to "pump" or "control" the market. They have already amassed significant wealth through fees, and this ICO is more like a final "value realization" (Exit Liquidity). In the current market environment, where buying pressure is severely lacking, such a high valuation cannot be supported. This is completely different from the valuation support logic of Hyperliquid. Jocy considers this public fundraising a highly speculative gamble rather than a fundamental investment. The invested funds should be regarded as risk capital that could be completely lost. The market has already shown signs of fatigue regarding the growth potential of meme launch platforms and altcoins. Investors are advised to wait until the tokens have been traded on the open market for a week before making decisions, to observe the real market reaction.