Pump.fun Ecosystem Tokens Slide as $1B Raise Sparks Investor Concerns
Solana’s most viral memecoins—ranging from FARTCOIN to PNUT—took a hit Tuesday following reports that token-launchpad Pump.fun is eyeing a massive $1 billion fundraise at a $4 billion fully diluted valuation.
The sell-off began after Blockworks reported that Pump.fun is pitching the raise to investors, with a deal potentially closing within weeks. Details on the token structure or how the new funds would be used remain unclear.
Tokens associated with the platform fell sharply. Fartcoin (FARTCOIN), the ecosystem’s top token by market cap, dropped 7%. Peanut the Squirrel (PNUT), Moo Deng (MOODENG), and Goatseus Maximus (GOAT) shed as much as 6%. Alchemist AI (ALCH), which had posted a 25% gain earlier in the day, flipped negative. The collective losses shaved around $150 million off the sector’s market value—still elevated but noticeably lower from recent highs.
Traders fear that a fresh Pump token could mean more supply flooding into the market. Even if proceeds eventually benefit users, the prospect of short-term “farm-and-dump” activity is raising red flags across crypto X (formerly Twitter).
The backlash deepened as several prominent voices questioned the rationale behind such a large raise. “Why does Pump need to raise $1B when it’s already made $675 million and hasn’t even deployed it?” asked DeFiLlama founder @0xngmi.
Mert Mumtaz, founder of Helius, echoed the skepticism: “They went through an accelerator, raised a small round, then made almost a billion in revenue in a year—and now want to raise another billion at a $4B valuation? That’s insane.”
Just three weeks ago, Pump.fun introduced new incentives for token creators, pledging 50% of PumpSwap fees—equivalent to 5 basis points per trade—directly to developers. Founder Alon Cohen framed the move as a way to reduce dump pressure: if developers earn ongoing revenue, they’re less incentivized to offload tokens on their communities.
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