Pump.fun's PUMP Token ICO Sells Out in 12 Minutes, Raising $600 Million Amidst Controversy

Pump.fun, the Solana-based meme coin launchpad, successfully concluded the initial coin offering (ICO) for its native PUMP token on July 12, 2025, raising $600 million in a mere 12 minutes. The rapid sellout, which saw 150 billion tokens (15% of the total supply) sold at $0.004 each, signals significant investor interest in the platform's new token. This event has prompted discussions across the crypto community regarding the resurgence of ICOs, particularly on the Solana blockchain.

The public sale, hosted across major exchanges including Bybit, Kraken, and KuCoin, followed a swift presale that raised $500 million. Despite the overwhelming demand, participation was restricted, with Know Your Customer (KYC) verification preventing residents of the US and UK from taking part. Following the sale, the PUMP token quickly began trading on secondary markets like Hyperliquid, reportedly commanding a premium of 40% above its ICO price, indicating strong immediate market confidence.

Pump.fun has established itself as a dominant force in the meme coin sector, generating over $700 million in fees since its inception by facilitating thousands of token launches. However, the platform has also faced considerable criticism; reports indicate that approximately 98.6% of tokens launched on Pump.fun are considered scams or rug pulls. Furthermore, data from Dune Analytics reveals that around 60% of wallets interacting with the platform are currently operating at a loss, with many experiencing significant financial setbacks.

The PUMP token launch has reignited debates about "exit liquidity" and the long-term sustainability of such ventures. Critics argue that the substantial allocation of over 40% of the token supply to insiders, including the team and existing investors, raises concerns about potential sell pressure on retail buyers. While the ICO's success is undeniable, Pump.fun's revenue has seen a sharp decline of 92% since January, and a new competitor, LetsBonk, has recently surpassed its trading volume, adding to the complex market dynamics.

The question of whether this marks a broader return of ICOs, especially on Solana, remains a key point of discussion. As crypto journalist Laura Shin queried on social media, > "Hey @AskPolymarket do you think we’ll see a lot more ICOs now after today’s Pumpfun ICO, and do you think they’ll be on Solana?" The PUMP token is intended to serve as a utility coin for the Pump.fun protocols, though its specific long-term utility beyond speculation is still being assessed by market observers. The coming months will reveal if this high-profile launch can overcome existing controversies and pave the way for a new wave of token offerings.