Author
Sujha Sundararajan
Author
Sujha Sundararajan
Share
Popular Solana-based meme coin generator Pump.fun could be launching its own token soon, unnamed sources told Blockworks. The platform is reportedly planning to raise $1 billion in a token sale at a $4 billion token valuation.
The token will be sold to both public and private investors, the report added. However, it was unable to confirm the timing of the token launch.
Pump.fun was launched in January 2024 with the goal of simplifying token creation on Solana. The platform has generated more than $700 million in total revenue since launching over a year ago, the report added.
Early this year, co-founder Alon Cohen denied any rumors about the launch of a potential Pump.fun token.
“I would advise not to listen to anything that didn’t directly come from Pump.fun,” he wrote on X, adding that the team is mainly focused on improving the product. He also hinted that it is “committed to rewarding its users properly.”
The report did not include whether the new token would be issued on Pump.fun. However, cues from X suggest that the token will be launched in the next two weeks, followed by airdrop for users.
The crypto community showed mixed reactions, some being skeptical about the launch, while others showed optimism that the move would reignite Solana’s bullish ecosystem.
A New York entrepreneur, Nick O’Neil, said on X that Pump.fun has demonstrated its ability to successfully execute projects.
“At a $4 billion valuation, that would place them as one of the top 30 crypto tokens,” he said in a video. “This is a massive move. It’s honestly going to drive a ton of liquidity for them and they’re going to raise a ton of money.”
There’s also been a lot of controversy surrounding Pump.fun, from streaming disasters with potential suicides. Additionally, the platform also faced a cease and desist case from Burwick Law over 200+ IP-infringing meme coins.
Solana Dips 2%, Will it Sink Further?
On Tuesday, SOL gained nearly 7%, after breaking above $159 with strong volume. However, the token price dipped over 2%, as the news arrived, but has since recovered about half of the dip.
SOL is currently trading at $156.5 at press time, per CoinMarketCap data. Along with the price action, the total market cap of Solana reached $81.74 billion, with a 24-hour trading volume of $3.46 billion.
Solana seems to be preparing for a potential bullish breakout following a strong correction recently.
