Pumpfun will launch its ICO on July 12, and the PUMP tokenomics has sparked controversy.

Key Points:

• The Solana ecosystem meme coin launch platform Pumpfun confirms that its native token $PUMP will start its ICO on July 12.
• Total token supply of 1 trillion, with 33% released through ICO, of which 18% is allocated to private placement and 15% to public sale.
• The private placement and public sale price is $0.004 per token, with no lock-up period, and the tokens are non-transferable for 48-72 hours before trading.
• The remaining allocation has sparked community criticism, with the team and early investors holding an excessive share (over 40% in total).
• Residents of the United States and the United Kingdom are not allowed to participate in this Solana token pre-sale.
• Pumpfun's vision is to transform into a decentralized social platform, challenging Facebook, TikTok, and Twitch.

$PUMP ICO Details and Token Distribution

Pumpfun officially announced that its native governance and utility token $PUMP will be launched on July 12, 2025 through an Initial Coin Offering (ICO). The total supply of the token is fixed at 1 trillion and a structured distribution plan has been adopted, aimed at covering institutions, the community, and internal stakeholders.

1. ICO Allocation (33% of Total Supply):

   • Private Placement Round (Institutional Investors): Accounts for 18% of the total supply (18 billion tokens, with a fundraising target of 720 million USD), aimed at qualified institutional investors.
   • Public Sale Round (Public Investors): Accounts for 15% of the total supply (15 billion tokens, with a fundraising goal of 600 million USD), will be conducted on major cryptocurrency exchanges such as Gate. The public sale will last until the 15 billion tokens are sold out or until July 15 at 14:00 UTC (whichever comes first). Please note: Residents of the United States and the United Kingdom are unable to participate in this ICO (Solana token presale restrictions).

2. Unified Price and Unlocking Rules: Both private placement and public sale participants can purchase $PUMP at a price of $0.004 per token. All tokens sold through the ICO will be fully unlocked when they are tradable, with no vesting period restrictions. Participants will receive their tokens shortly after the public sale ends, but there will be a non-transferable period of 48 to 72 hours before the tokens are tradable (token unlocking mechanism).

3. Remaining Token Allocation: Community and Ecosystem Plan: 24%

   • Team: 20%
   • Existing investors: 13%
   • Pumpfun Foundation: 2%
   • Ecosystem Fund: 2.4%
   • Exchange Liquidity: 2.6%
   • Live Streaming Special: 3% (Specifically reserved for live streaming related activities)

Community Criticism: Token Distribution Cited as "Exploitive"

Despite Pumpfun's announcement of a detailed token distribution plan, the scheme has sparked strong criticism within the cryptocurrency community.

Cryptocurrency researcher Rex bluntly stated that its Tokenomics is "exploitative." He pointed out that the team allocated over 40% of the token supply (20% for the team + 13% for existing investors + 2% for the foundation + 2.4% for the ecosystem fund ≈ 37.4%, plus the potential control of some community/ecosystem funds) to itself and related parties, while the platform's revenue of over $750 million in the past year largely relied on community contributions.

Rex particularly questioned the ambiguity of the community reward section: "The community reward (Community Reward / Airdrop), which should be the core purpose of $PUMP, is labeled as 'Coming Soon'. This is just another way of saying 'we actually have no airdrop plans'."

Pumpfun's Grand Vision: Building a Crypto-Native Social Platform

Looking to the future, Pumpfun outlined its plans to transcend the current Meme coin Launchpad model, aiming to transform into a decentralized social platform.

The company stated that its goal is to become an alternative to existing social platforms (such as Facebook, TikTok, and Twitch), with the core difference being: Pumpfun is dedicated to rewarding users, rather than merely monetizing users' attention (user incentive model).

Pumpfun co-founder Alon Cohen emphasized the platform's commitment to leveraging on-chain trading social trends. He explained that Pumpfun aims to revolutionize the livestreaming space by rewarding audiences who identify talent early and enabling creators to monetize their content more effectively.

Cohen further stated that Pumpfun aims to cultivate a prosperous community, movement, and even cultural circles (Cults). He believes this will create a whole new crypto-native participation space within the social media landscape.

(Source: CryptoSlate)