PumpFun's Free Token Issuance: Surge in Revenue but Community Concerns Emerge
CryptoNewsTerminal Staff14 Aug, 2024
PumpFun's Free Token Issuance: Surge in Revenue but Community Concerns Emerge
PumpFun (pump.fun), a Solana (SOL)-based token issuance platform, has implemented free token issuance, leading to a significant increase in revenue but also sparking discontent among some users. Previously, PumpFun charged a $2 token issuance fee, but on September 9th, it reduced the fee and began offering a 0.5 SOL (approximately $80) reward to issuers who complete a bonding curve and list their tokens on Raydium (RAY). Following the implementation of these changes, PumpFun's revenue surged to $5.3 million within 24 hours. However, the community has expressed concerns. Some members argue that "PumpFun tokens are paid for by first buyers (often automated trading bots), and no one except the PumpFun team makes any money." Others claim that "the tokens issued become worthless within seconds, and this update benefits no one except the PumpFun team." It remains to be seen whether PumpFun will address these concerns and whether the free token issuance model will continue to be profitable in the long term.
