Pump.fun’s $1B Raise Triggers Sell-Off Across Solana’s Meme Token Space
Solana’s meme token rally cooled sharply on Tuesday as investors reacted to reports that Pump.fun — the token-creation platform fueling the trend — is preparing a $1 billion token raise at a $4 billion fully diluted valuation.
The news, first reported by Blockworks, sent shockwaves through the ecosystem. Several top tokens launched via Pump.fun, including Fartcoin (FARTCOIN), Peanut the Squirrel (PNUT), Moo Deng (MOODENG), and Goatseus Maximus (GOAT), dropped between 5% and 7%. Alchemist AI (ALCH), a recent outperformer, reversed course after an early surge, leaving the day in the red. Roughly $150 million in market value was erased across the ecosystem.
The reaction reflects fears that a fresh capital injection — and a possible new Pump-branded token — could dilute value across existing assets. Even as Pump.fun continues to generate substantial revenue, market participants voiced concerns about the need for such an aggressive raise.
“They’ve already made $675M and barely deployed it — what’s the justification for raising another $1B?” asked DeFiLlama founder @0xngmi.
“It’s wild. A startup that went from seed to $1B revenue in a year now wants more. These are unprecedented numbers,” said Helius CEO Mert Mumtaz.
The controversy also shines a light on Pump.fun’s recent shift toward more sustainable incentives. Three weeks ago, the platform introduced a revenue-sharing model that redirects 50% of PumpSwap fees — equivalent to 5bps per trade — to token creators, in an attempt to curb the rinse-and-dump behavior that often plagues memecoins.
Founder Alon Cohen pitched the change as a long-term fix, encouraging developers to earn via ongoing fees rather than offloading their own tokens. However, the looming fundraise casts fresh uncertainty over whether such mechanisms can offset the impact of major token dilution.
As the memecoin boom faces its first real test, traders will be watching closely to see whether Pump.fun’s next chapter builds deeper infrastructure — or just more volatility.
