Pump.fun’s $1B Token Plan Risks Undermining Solana DeFi, Fueling Meme Coin Scams, Experts Warn
Crypto analysts and legal experts are raising alarms over Pump.fun‘s planned $1 billion token sale, warning that the platform’s growing dominance in meme coin issuance risks concentrating liquidity, destabilizing Solana‘s (CRYPTO: SOL) DeFi ecosystem and amplifying fraudulent activity.
What Happened: According to a Blockworks report, Pump.fun is pursuing a $1 billion token offering at a $4 billion fully diluted valuation.
While the timing and issuance details are unconfirmed, the platform has already generated over $700 million in revenue since launching just over a year ago.
Despite multiple attempts by Benzinga to seek comments from Pump.fun, the platform did not respond.
“Pump.fun’s announcement of a $1 billion token sale at a $4 billion valuation is backed by its significant influence in the meme coin sector,” said Ryan Lee, Chief Analyst at Bitget Research told Benzinga.
But he cautioned that this same dominance “has led to substantial …
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