Pump Fun ICO raises $600M as PUMP traders dodge sale restrictions

Memecoin platform Pump Fun’s initial coin offering (ICO) has concluded, and its PUMP token is now tradable on several exchanges.

The token was initially sold for $0.004 during the ICO and has now risen to approximately $0.0055, according to data from Binance-owned CoinMarketCap.

The initial sale, which took place on July 12, sold out in mere minutes, with Pump Fun raising approximately $600 million.

Interestingly, despite the ICO requiring purchasers to go through a know-your-customer (KYC) process, analysis from Blockworks suggests that some wallets participated in the sale from dozens, or in at least one case hundreds, of addresses.

Blockworks highlighted that 88888FAoqY6JdSvz7fk1FPd6qjPTcCMGcS64GbwonLoE funded 500 different addresses that all participated in the sale, purchasing a total of $200,000 worth of PUMP tokens.

Its analysis also stated that this address had previously participated in other memecoin sales, including WUKONG.

The team behind the token claims that it will have a maximum supply of one trillion, with only one-third of that amount available during this ICO.

A fifth of the total token supply is being reserved for the team, with an additional 13% being reserved for pre-ICO investors in Pump Fun.

Read more: Trader suing Pump Fun still uses the platform

The remaining tokens are supposed to be split between:

• Community and ecosystem initiatives — 24%
• Livestreaming — 3%
• Ecosystem fund — 2.4%
• Foundation — 2%
• Liquidity and exchanges — 2.6%

PUMP is advertised as the “native token” for Pump Fun, but it’s not entirely clear what that will mean.

In one post on X, it’s claimed that “PUMP will grow the Pump Fun ecosystem by delivering value to its community and incentivizing the ecosystem that continues helping the platform succeed.”

Read more: David Hirsch shuts down Pump.fun rumor after SEC exit

This is quickly caveated, though, as it’s noted that they’re still “giving thorough consideration to utility mechanisms like fee rebates, token buybacks, or other incentives and promotions.”

Pump Fun is currently the target of a lawsuit from traders who have lost money on the platform.

The platform’s livestream features have also been used in controversial ways, including to threaten people with murder, animal deaths, brandishing of firearms, and threats of suicide.

Read more: ZachXBT says potential Pump Fun plaintiffs aren’t actual victims

Pump Fun’s co-founder, Dylan Kerler, is also reportedly behind a previous alleged rug-pull, Ethereum Cash.