Recently, the cryptocurrency market was once again stirred by a highly anticipated yet controversial presale event: pump.fun's attempt to launch its native token, PUMP, at an astonishing valuation. However, what was intended as a massive fundraising effort quickly devolved into a fierce community outcry, raising serious questions about the project's integrity, valuation rationality, and even the inherent flaws within the broader memecoin ecosystem. The multitude of criticisms revealed issues far beyond initial expectations, casting a heavy shadow of doubt over the supposed "innovation."
1.The pump.fun Presale: An Ambitious Yet Heavily Questioned Venture
Pump.fun is a Solana-based memecoin launchpad, known for allowing users to issue tokens without needing prior code audits or liquidity deployment. It was once hailed as a decentralized playground where anyone could "make magic happen."
The public sale for Pump.fun's own PUMP token positioned it as a utility token for the platform and its new Automated Market Maker (AMM) protocol, PumpSwap. This public offering kicked off on July 12, 2025, and was slated to run until July 15, or until 150 billion tokens (15% of the total supply of 1 trillion) were sold out. The tokens were priced at $0.004 each, implying a fully diluted valuation (FDV) of a staggering $4 billion.
Despite being hosted across several prominent exchanges like Bybit, Kraken, KuCoin, Bitget, Gate.io, and MEXC, and accepting fiat currencies (USD, EUR, GBP, etc.) and stablecoins (USDC, USDT, USDG), the PUMP presale was riddled with skepticism from the very beginning.
2.The Core of the Backlash: Why the Community Is Fuming
The intense community backlash against Pump.fun's presale wasn't accidental; it was the result of multiple deep-seated contradictions converging.
The Founder's Hypocrisy: Eroding the Foundation of Trust
The most immediate and damaging trigger was the Pump.fun founder's past public statements. The founder had once unequivocally declared: "Every pre-sale is a scam." This stark anti-presale stance had initially earned the platform recognition within parts of the decentralized community. However, times have changed, and pump.fun's decision to now launch its own massive presale was widely seen by the community as blatant hypocrisy and a betrayal of their prior stance.
In the decentralized world, trust and transparency are paramount. The inconsistency in the founder's words and actions directly struck at the community's last line of defense concerning the project's integrity, igniting overwhelming moral condemnation and a crisis of trust. On social media, the founder's old tweets resurfaced repeatedly, becoming a focal point for collective mockery and accusations, further fueling public discontent.
Absurd Valuation and "Exit Liquidity" Fears: A Poisoned Chalice?
The PUMP token's $4 billion FDV stood out as particularly egregious and illogical within the current crypto market, which is generally bearish and suffering from insufficient buying power. Jocy, founder of IOSG Ventures, publicly slammed it as "a final exit liquidity event."
She sharply noted that the platform's current operational data simply couldn't support such a high valuation. Pump.fun's revenue had plummeted by 92% since its peak in January, and the daily token launches had sharply declined from over 1,100 at its peak to merely 69 in July. This alarming data downturn created a stark contrast with the ambitious $4 billion valuation.
The accusation of "exit liquidity" is one of the most severe criticisms leveled against a project. It implies that the project team or early investors might be trying to attract new retail funds through the presale, allowing themselves to cash out at a high valuation and offload potential losses onto later buyers. In a stagnant market lacking fresh capital, such a high-valuation presale undoubtedly heightened investors' concerns and vigilance.
Platform Reputation Collapse: A Breeding Ground for Scams and Rug Pulls
A deeper issue lies with Pump.fun's own reputation. According to a shocking analysis, an astonishing 98.6% of tokens launched on the Pump.fun platform have been flagged as scams or "rug pulls" (where project creators abandon the project and run off with investor funds).
This alarming statistic has completely shattered Pump.fun's self-proclaimed image as a "decentralized playground,"instead firmly cementing its place as a hotspot for fraud. In an ecosystem rife with scams, the platform's own token, PUMP, naturally faced unprecedented suspicion regarding its motives and future prospects. The community widely believes that a platform unable to effectively curb scams within its own ecosystem can offer little real value or long-term potential with its own "utility token." This internal breakdown of trust made the PUMP token's presale carry a heavy original sin from its inception.
Lingering Legal and Regulatory Shadows
Adding fuel to the fire, pump.fun is currently facing severe legal and regulatory challenges. It's embroiled in a $500 million lawsuit in the U.S., accused of promoting unregistered securities. Concurrently, it has received a warning from the UK's Financial Conduct Authority (FCA). These legal and regulatory issues not only risk substantial fines and operational restrictions but also severely tarnish the platform's image regarding compliance and sustainability, leaving investors deeply uncertain about its future.
1.Broader Market Reflection: A Cautionary Tale for Memecoin Presales
Pump.fun's controversial presale isn't merely the failure of a single project; it serves as a profound warning to the entire cryptocurrency market, especially concerning memecoins and various presale activities.
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Overhyped Valuations and Detachment from Fundamentals: The PUMP token's lofty valuation reflects how some projects attempt to create a bubble through concepts and expectations, often lacking substantial revenue or genuine user activity. This kind of speculation, detached from fundamentals, will ultimately face the market's and community's unforgiving judgment.
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The Crucial Role of Founder Credibility: In the decentralized world, a founder's personal credibility and past actions are decisive for a project's legitimacy. Inconsistent behavior can rapidly destroy community trust.
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The Boundaries of Platform Responsibility: The high percentage of scam tokens on Pump.fun also raises questions about the responsibility of "one-click token launch" platforms regarding risk control and user protection. Should platforms bear more responsibility for the scams that proliferate within their ecosystems?
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Investor Introspection: This incident also serves as a stark reminder to all crypto investors: "only invest what you can afford to lose" is not just an empty slogan. When faced with memecoins and high-risk presales, maintaining extreme prudence, conducting thorough Due Diligence (DYOR), and being wary of "get-rich-quick" narratives are the only ways to protect your wealth.
2.KuCoin's Performance Amidst the Turmoil: A Note of Stability
During the highly contentious Pump.fun PUMP token presale, KuCoin, as one of the participating platforms, was committed to ensuring a smooth subscription process for its users. Throughout the subscription period, we noted that other partner platforms consistently displayed subscription amounts of 0 on the pump.fun project page, indicating potential anomalies in their system connections. In contrast, KuCoin's platform demonstrated superior reliability in its API and system integration with the project.
We can clearly state to our users that all participants who subscribed through the KuCoin platform successfully received their tokens; additionally, any USDT that was not successfully subscribed due to exceeding allocation limits has been fully and promptly refunded to users' accounts, ensuring the security of their funds.
Conclusion and Warning
The widespread discontent and market skepticism triggered by pump.fun's PUMP token presale undoubtedly serve as a wake-up call for the entire cryptocurrency industry. It profoundly reveals the potential for trust crises, valuation bubbles, and legal risks lurking behind the pursuit of high valuations and quick gains. For all participants, this is a living lesson: in the wild west of cryptocurrency, blindly following trends and ignoring risk warnings can ultimately lead to heavy losses. Maintaining a clear head, adhering to rigorous due diligence, and always choosing technically stable and reputable platforms for your transactions are the only ways to protect your assets and avoid becoming a victim of "exit liquidity"in a volatile market.
