Pump.fun Token Sale Raises $500 Million in 12 Minutes ICO
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- Pump.fun raised $500-600 million through its PUMP token ICO in just 12 minutes
- The token sale offered 125 billion tokens at $0.004 each with a $4 billion fully diluted valuation
- Pre-market trading showed 16-40% gains with prices reaching $0.006-$0.007
- Pump.fun acquired analytics firm Kolscan to enhance trading tools and data visualizations
- The 48-72 hour token lock-up period has traders anticipating high volatility upon release
Memecoin launch platform Pump.fun completed its PUMP token sale on Saturday, raising between $500 million and $600 million. The initial coin offering sold out in approximately 12 minutes.
The sale offered 125 billion tokens at a fixed price of $0.004 per token. This represented 12.5% of the total 1 trillion token supply.
The fully diluted valuation reached approximately $4 billion based on the sale price. Of the 33% total ICO allocation, 18% went to institutional investors and 15% to retail traders.
The rapid sale caused service interruptions on several participating exchanges. Kraken reported infrastructure strain and announced compensation for affected users with free PUMP tokens.
Token Distribution and Lock-Up Period
The token distribution includes 33% for the ICO and 24% for ecosystem and future community projects. Another 13% was reserved for existing investors according to the platform.
Tokens remain locked during a 48 to 72-hour distribution period. Buyers cannot trade or transfer their PUMP tokens until this period ends.
Pre-market trading activity showed strong interest with prices between 16% and 40% above the sale price. Some trades occurred near $0.007 before stabilizing closer to $0.006.
The initial sale price of $0.004 means early pre-market trades represent gains for ICO participants. Market watchers expect high volatility once tokens become freely tradable.
Platform Acquires Analytics Firm Kolscan
Pump.fun announced its acquisition of on-chain analytics firm Kolscan alongside the token sale. The acquisition aims to enhance user tools across the platform.
Kolscan integration will offer real-time wallet tracking and profit and loss analysis features. The platform plans to provide more sophisticated data visualizations for memecoin traders.
The acquisition represents Pump.fun’s expansion beyond its memecoin launching roots. The company appears to be building a more comprehensive trading ecosystem with analytics tools.
Dragonfly managing partner Haseeb Qureshi called it “one of the largest ICOs ever.” He predicted it would become “one of the highest-grossing revenue tokens in crypto.”
The crypto community remains divided on Pump.fun’s impact on the industry. Truth for the Commoner founder Mary Bent criticized the platform as leading “Gen Z to ruin.”
Coinbase’s head of product Conor Grogan noted that automated bots create the majority of tokens on platforms like Pump.fun. He cited one individual responsible for creating about 18,000 tokens on the platform.