Author: Unipcs
Compiled by: Tim, PANews
PANews Note: The author of this article, Unipcs, is an opinion leader in the Bonk ecosystem. The translation is intended to share information and is not investment advice. DYOR.
Several people have asked me about my opinion on the Pumpfun TGE event and the PUMP token.
Considering this is the most anticipated token launch in some time, and many have recently started comparing it to BonkFun, which has dominated the conversation since surpassing PumpFun, I thought it would be helpful to lay out my views in a systematic way.
Regarding PUMP tokens, the information I currently have is as follows:
- They raised $1 billion at a $4 billion valuation
- Forecasts and OTC markets expect the token to be valued between $7 billion and $8 billion after the token launch, with some trading platforms even giving valuations as high as $10 billion.
What does this mean for the BONK and BonkFun ecosystems, especially the Meme coin main battlefield and even the entire Meme coin market?
I have commented several times on X that the PUMP token is fully worth the $4 billion valuation at the time of the fundraising.
I also said that it could easily be ranked in the top 10-15 cryptocurrencies in the market.
These comments were based on historical and projected revenues for the Pumpfun project compared to other cryptocurrency valuations at the time.
When I said those words, I didn't expect BonkFun to surpass PumpFun so quickly and so strongly.
That being said, here are my latest thoughts:
1. While I think Pumpfun's growth streak is by no means over, it is likely that BonkFun will continue to remain an industry leader for the foreseeable future.
This conclusion is based on the following reasons:
1. Bonkfun values creators and users, and is close to the Solana ecosystem, which are its huge advantages
2. The strong culture formed in the BONK ecosystem is gradually permeating into the tokens launched on BonkFun. This cultural barrier is difficult for others to replicate in the short term.
3. Pumpfun was once a strong tokenless protocol, especially with the TGE and potential airdrops approaching. However, its market share suffered a heavy blow in the days and weeks before the TGE. It is hard to imagine that it can continue to recover its former market position after the TGE.
4. Although all launch platforms are plagued by bot problems, I think a considerable part of the activity on Pumpfun actually comes from two types of entities: one is advanced users, and the other is bots that specialize in trading to wait for opportunities to receive airdrops. After all, Pumpfun has been the most profitable protocol in the crypto field for a long time, and this situation is normal. I believe that this kind of activity will gradually decrease or stop after the TGE, after all, the incentives have ended.
5. What’s even more amazing is that Bonkfun’s growth is completely organic and natural. Its development momentum comes entirely from the deep collaboration with the Solana ecosystem. It has never promised any token incentives or created token expectations. Because the BONK token existed before the platform went online, and the platform has always made it clear that all fees will be used to buy back and destroy BONK tokens.
6. It is worth noting that BonkFun’s rapid growth is largely due to the continued expansion of its global influence, especially in gaining recognition from important cultural circles. For example, the Chinese market is embracing the project, making it the top token issuance platform in the country. Chinese institutions are pouring into Solana on a large scale, and the number of tokens issued on the BonkFun platform has broken historical records, far exceeding any other blockchain project. BonkFun is particularly good at this field layout, and its development momentum continues to strengthen. I think this point is still habitually overlooked by many people.
This doesn't even take into account certain new strategic moves that Bonkfun may make in the foreseeable future.
Overall, I think BonkFun is strategically positioned to lead the launch platform into the long term future.
I mean, Pumpfun could make some interesting announcements to try to regain market share before the TGE, but I think even if they do, the effects will be short-lived.
2. The TGE of PUMP tokens is a bullish catalyst for BONK, BonkFun and its ecosystem.
Many people have been promoting the idea that the upcoming PUMP token will suck away liquidity from popular tracks, top meme coins, and the BonkFun ecosystem.
Although if that had been true a week or two ago, I think it would be different now.
BonkFun crushed Pumpfun so quickly and took action at a time close to its TGE, which will effectively curb the market's irrational enthusiasm for PUMP tokens, thereby avoiding the occurrence of Meme coins and liquidity pool bloodsucking incidents. After all, in the context of recent industry turmoil, it is incredible to abandon long-term value projects and turn to All In such hype tokens.
3. Now the token issuance of PUMP will gradually become clear, but the protagonists are BONK and BonkFun ecosystem
The PUMP token economics remain very opaque and the details revealed are quite limited.
What is certain is that 50% of the fees on the BonkFun platform are used to repurchase and destroy BONK tokens.
We also know that 58% of the total fees on the BonkFun platform will be used to purchase BONK tokens in some way.
I don’t know how the final PUMP token economics will be designed, but I currently don’t see how it can be more competitive than BonkFun.
Especially considering the fact that PumpFun raised $1 billion at a $4 billion valuation despite being an extremely profitable business (it has made nearly $1 billion in profits over the past year and a half).
I think the best deal of PUMP TGE is BONK and its BonkFun eco-coin:
If PUMP raised $4 billion and was valued by a third party at $10 billion, what should BONK be valued at given its recent market dominance and potential for continued dominance?
Especially considering that BonkFun is just one of many ecosystem products that bring buying and burning to BONK, BONK's current market value of $1.8 billion seems to be seriously underestimated.
If I were a rational investor, I would think that in the current environment, buying BONK for $1.8 billion would provide a higher return on investment than buying PUMP for $4 billion or more.
I also think that given the current situation, the BonkFun ecosystem will take on more buy orders and aggressively push up the price of the coin.
Moreover, we have not considered a very likely scenario: Pumpfun may lose momentum and market share after completing the TGE.
4. BonkFun’s continued dominance is a very positive signal for Memecoin and the frontier track
One of the important reasons why many people in the industry have strongly rallied behind BonkFun and boycotted PumpFun is that they believe that PumpFun has a serious "pumping" plot.
This negative reputation for being "extractive" stems primarily from their selling of SOL (in the hundreds of millions of dollars).
The success of Memecoin and the level of on-chain activity are strongly correlated with the price of blockchain native tokens, such as the SOL token on the Solana chain.
If the SOL coin price continues to rise or remain relatively stable, it will be beneficial to the on-chain ecology and trading market, as it will provide more people with the opportunity to participate in Meme coin casino games.
This means that blue-chip meme coins are more resilient to price falls, and newly launched tokens and small-cap currencies have a more supportive price floor, which in turn encourages people to launch more meme coins and create narratives.
And in that regard, everything is going well for BonkFun:
- BonkFun pledges 15% of all transaction fees generated by the platform in the form of SOL to the BONKSol validator node. This move not only effectively reduces the selling pressure of SOL, but also makes a substantial contribution to maintaining the security of the Solana network by staking a large number of tokens to become a validator node.
- 58% of all revenue will be used to purchase BONK. People familiar with the Meme coin market know the law of "Dogecoin Riot". When a strong Meme coin continues to explode, it will drive other large-cap currencies to rise, while igniting the speculative enthusiasm of crypto gamblers, thereby giving birth to more new Meme coin projects and narratives.
So in this case, on the one hand, SOL selling has decreased, and on the other hand, the more aggressive token repurchase and destruction mechanism continues to push BONK to incredible highs.
The more this happens, the more active and frenzied the speculative hype becomes, creating a self-reinforcing flywheel effect.
Call it a "Bonk Flywheel" or a "Bonk Sports Car" if you want, but you get the point.
I don’t know how to best express this, but I guess it’s inevitable: BonkFun will be the ultimate winner, which is the best thing for the community and the entire Meme coin market, even if you don’t own half a BonkFun ecosystem token.
Conclusion
BonkFun's recent success has shown one thing: PUMP TGE, which many people thought was terrible for the Meme coin and shit coin market because it would drain a lot of liquidity. Now, with the arrival of this high-profile token issuance event, funds have poured into the BONK and BonkFun ecosystem, which has become a potential catalyst for promoting the Meme coin and shit coin market.
