News of Pump.fun's planned $1B funding round at a $4B valuation has polarized the Solana community.
Solana Establishment View:
"Pump.fun is a parasite on Solana's ecosystem—the team profits by dumping SOL, doesn't stake, and shows no loyalty. Now they're squeezing the last drops of liquidity with this exit play. Shameless."Grassroots Supporters:
"Pump.fun revolutionized asset issuance, liberating retail from VC-dominated hellscapes. It minted countless 'A7-A10' degens. The .fun model elevates Solana's asset creation to new heights."
ABC Alpha's take:
Pros: Pump.fun pioneered a new ICM (Internet Capital Market) paradigm, enabling retail participation.
Cons: The team's relentless SOL dumping and inflated $4B valuation (feasible in 2024's bull run, not now) reek of an exit strategy amid fading meme coin mania.
The real question: If Pump.fun raises $1B and its token crashes post-listing, will Solana survive? Is the .fun model doomed like ICOs/NFTs/inscriptions?
Since 2017, crypto has seen two dominant frameworks:
VCM (Venture Capital Market):
VC-funded projects → product development → token launch.
A traditional finance import, not native to crypto.
ICM (Internet Capital Market):
Community-driven asset creation (e.g., Bitcoin, Ethereum ICOs).
True crypto-native issuance, where early adopters (not VCs) shape ecosystems.
Why VCM Fails in Crypto:
Traditional markets restrict issuance to elite players (regulatory gatekeeping). Crypto flips this: Anyone can launch assets permissionlessly.
ICOs: Needed CEX approvals for trading (centralized bottlenecks).
NFTs/Inscriptions: Poor liquidity, illiquid "floor prices."
The .fun model merges:
Trench Market: Permissionless token creation.
Open Market: Instant on-chain liquidity via bonding curves.
This synergy democratizes access for retail and builders alike—fueling Solana's 2024 meme coin explosion.
While 80% of .fun tokens are rugs, the model evolves:
Quality projects now emerge (e.g., teams blending VCM funding with ICM distribution).
VCs can participate without disrupting retail fairness (locked allocations mirroring public vesting).
Short-term liquidity drain? Yes.
ICM extinction? No.
The .fun paradigm is here to stay—just as Bitcoin survived Mt. Gox, and DeFi weathered countless hacks. ICM is crypto's true native model, and Solana's infrastructure ensures its longevity.
As for VCM? Hybrid approaches will emerge, but the future belongs to permissionless, community-powered issuance.
Data: Pump.fun, SolanaFM | Image: TradingView, Dune Analytics
(For deeper ICM analysis, see ABC Alpha's thread: https://x.com/ABCAlphaDAOCN/status/1927673650419020089)