Pump issue coin valuation of 4 billion USD sparks controversy

Recently, a MEME token launch platform announced the launch of its platform token, attracting widespread attention in the market. The maximum supply of this token is 1 trillion coins, of which 33% will be used for fundraising during the initial coin offering. The private placement and public offering tokens are uniformly priced at $0.004 each, giving an overall valuation of up to $4 billion, and will be fully released during the initial coin offering. This means that there is at least $1.32 billion of potential selling pressure after the token opens for trading. As of July 11, its pre-market trading price on a certain derivatives trading platform and a certain centralized exchange was approximately $0.0051, a premium of about 22% over the fundraising price.

The announcement of this coin issuance has exacerbated the already tense on-chain sentiment. The current market is facing liquidity tightening and low sentiment. As a leading MEME launch platform, this project has seen a significant decline in daily revenue and user activity compared to its peak period, with market share gradually being eroded by emerging competitors. Against this backdrop, its high valuation public offering is generally considered to have structural issues: the tokens lack actual value, there is significant selling pressure in the early stages, the team's unlocking plan is not transparent enough, and there is a clear overdraft of valuation during the down cycle of altcoins. Furthermore, the project team has previously continued to sell off the transaction fee income for cash rather than reinvesting in the community, leading to concerns that this round of high valuation fundraising resembles a liquidity exit operation rather than a long-term development plan for the project.

Since its launch in January 2024, the platform has accumulated nearly $670 million in revenue, with a peak daily fee close to $7 million. This had once allowed it to monopolize the dominant position of the Solana ecosystem MEME token launch platform. However, just as its token was about to be issued, competitors rose strongly. A competing product issued tokens 15,600 times, surpassing the platform's 11,500 times, capturing a market share of 49.8%, overturning the latter's 40.9% monopoly position. This was the first time since January 2024 that the platform was surpassed by a competitor in the Solana MEME market share. Although the platform subsequently returned to the number one position in the market, this experience of being surpassed raised questions about its monopoly position and indicated the possibility of being replaced by other platforms in the short term.

Token Economic Model

The allocation plan for this token is as follows:

• 33% for initial coin offering
• 24% allocated to community and ecosystem plans
• 20% allocated to the team
• 2.4% for the ecosystem fund
• 2% for the foundation
• 13% for existing investors
• 3% allocated to live streaming
• 2.6% for liquidity and exchange

Token Issuance Details

• 33% of the total supply will be raised, with 18% allocated to the private placement round and 15% to the public placement round.
• The price for both rounds of fundraising is $0.004 per coin, with a total valuation of $4 billion.
• All tokens will be fully unlocked on the first day of listing.
• Issuance time: July 12 to 15, 2025
• Participants must complete KYC verification, residents of certain areas are prohibited from participating.
• This token is only for promoting the platform and does not carry rights such as equity, income rights, or voting rights.

Competitive Analysis

The main competitors in the market include:

1. A new emerging platform: market share 36.8%, 24-hour trading volume $377 million, related token market value $2.03 billion
2. Believe: Market share 5.07%, 24-hour trading volume 51.8 million USD
3. A certain Studio platform: Market share 1.97%, related token market value 3.24 billion USD

From the perspective of market share and trading activity, the platform still maintains a leading position, but its market dominance is being eroded. In terms of the token economic model, there are obvious flaws in the platform's token. The official statement indicates that the token is only used for platform promotion and does not possess any economic rights, which brings its intrinsic value basis close to zero.

In contrast, a certain competitor has a more advantageous design in their token mechanism. Although their tokens also do not grant holders equity in the platform, they have built a strong value support logic by introducing economic cycles and deflationary models. For example, a portion of the transaction fees is used to buy back and destroy tokens and inject into liquidity pools, forming an automatic market-making mechanism. Other platforms are also constructing a more complete closed loop of token value, such as supporting staking to obtain platform incentives, forming a "governance-revenue" linkage.

Summary

In the current market environment, the platform's token issuance plan faces the following main risks:

1. High valuation raises doubts: The valuation of 4 billion USD is significantly higher than competitors, leading the market to question its pricing rationality.
2. Token model flaws: lack of basic economic rights and insufficient long-term holding incentives.
3. Market liquidity is tight: The overall market for altcoins is in a state of tight liquidity, and users are cautious about tokens with high valuations and high selling pressure.
4. Insufficient buying power in the secondary market: Excessive allocation in the public offering round may lead to a serious shortage of buying power in the secondary market.

The future performance of the token will largely depend on whether the project team can timely build a more sustainable token value system after the release of pressure in the secondary market, and through product innovation or ecological integration, re-strengthen its market dominance and user confidence.