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Are we again?
BTC is at a brand new all-time excessive of $121k, ETH is again above $3k, and Aave simply crossed $50 billion in TVL.
However in all probability most important of all is the return of preliminary coin choices (ICO). This previous Saturday noticed Pump’s ICO elevating $500 million at a $4 billion FDV.
I say “Saturday,” however it was throughout in 12 minutes. 125 billion PUMP tokens (12.5% of complete token provide) have been all offered for $0.004 apiece.
As of this morning, PUMP is buying and selling at 0.017, in order that’s a 325% revenue in the event you snagged it within the ICO.
Who have been the patrons?
10,145 distinctive addresses aped in at a remarkably equitable median value of $537.
Curiously, extra customers got here from DEXs than CEXs. About 3,878 Pump buyers got here from Solana DEXs together with Raydium, SolFi and Jupiter — in comparison with 2,525 buyers from CEXs.
Quite a few Bybit customers didn’t obtain their PUMP allocations on account of an “surprising API delay,” in order that they’ll be getting refunds and a tragic $20 spot payment coupon as an alternative.
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The important thing takeaway right here, I believe, is: Onchain infrastructure has by no means been extra streamlined and efficient.
Pump’s technique
Pump’s $500 million ICO is huge, however not that huge. Let’s put that into context.
EOS’ (at this time known as Vaulta) ICO in 2017-18 nonetheless holds the file for the largest-ever ICO, at a whopping $4.1 billion.
Telegram’s 2018 ICO additionally raised $1.7 billion in two phases. The GRAM tokens offered have been ultimately refunded on account of regulatory troubles, and the app’s backers later created TON.
In comparison with Ethereum, nevertheless, Pump’s ICO is huge. Ethereum raised ~$18 million in bitcoin throughout 42 days in 2014.
These are clearly not apples-to-apples comparisons given the variations in time interval, market maturation, product kind, and so on.
However the greatest distinction of all is that in contrast to the trade’s previous ICOs, Pump shouldn’t be a mere proof-of-concept — the memecoin launchpad is a money cow.
Pump has made $786 million in cumulative revenues since its inception in January 2024. That’s a staggering $377 million in annualized revenues for the two-year-old firm.
Moreover, Pump is allegedly planning to share 25% of revenues with token holders, my colleagues Katherine and Jack reported final week.
“There’s a fairly excessive likelihood that the PUMP token could have some worth accrual mechanism,” Blockworks Analysis’s Ryan Connor advised me.
Pump desires to go after the social media market. Within the crew’s personal phrases: “our plan is to Kill Fb, TikTok, and Twitch. On Solana.”
