Weekly Market Highlights Review【6.3 - 6.7】: Pump.Fun issue coin and Analysis of New Korean Policies

This week, the overall cryptocurrency market is engaged in a game of searching for direction, mainly characterized by rebounds followed by declines. On the positive side, a certain trading platform's ecosystem token has seen a widespread rise due to liquidity promotion activities, and the phone call between Trump and Xi Jinping reveals a direction for peace talks. Additionally, a certain payment company's listing has performed impressively under stablecoin policies. On the downside, the focus is mainly on steel tariffs and the Friday dispute between Trump and Musk's statements, while interest rate cuts are still delayed. This article mainly focuses on Pump.Fun issuing coins, as well as cryptocurrency policies in South Korea and Singapore.

1. Pump.Fun issue coin

On June 4, sources revealed that Pump.fun plans to conduct a $1 billion token sale at a $4 billion valuation. The tokens will be sold to the public and private investors, and may be issued in the next two weeks. This news has quickly sparked widespread discussion in the market.

1.Issue Coin Opportunity

• Market Liquidity

On January 18, 2025, Trump issued the Solana-based $TRUMP token on the eve of his inauguration, attracting significant market attention and driving speculative activity in the meme coin market in the short term. Subsequently, in February 2025, Argentine President Milei launched the $LIBRA token, but it quickly became embroiled in scandal, leading to a sharp decline in value and raising regulatory concerns about the issuance of political tokens. The two large-scale meme issuance events quickly drained the market liquidity at that time.

According to an analysis of company data, half of the wallet addresses of $TRUMP and $MELANIA token holders had no prior history of purchasing Solana-based altcoins. Additionally, about 47% of buyers created their wallets on the same day they received these tokens. Under such inflow, Doge fell by 6% and PEPE fell by 10.5%.

The TVL of Solana decreased by 10% during the issuance of $LIBRA, while the TVL of Ethereum only decreased by 2% during the same period. After reaching a peak daily trading volume of 35.5 billion dollars on January 17, on-chain activity on Solana sharply dropped to 3.1 billion dollars on February 17. These two events triggered panic in the market, causing many investors to withdraw from the cryptocurrency market, leading to an overall decrease in liquidity.

• Platform Siege

Since last year's meme craze, Pump.Fun has basically held a monopoly in the Solana meme track, but its practice of selling coins as soon as they are earned and the negative impact on the Solana ecosystem have led to Believe and LetsBONK.fun joining the fray, quickly eating away at Pump.Fun's leading position and market share.

For a long time, Pump.fun has dominated the Solana meme coin launchpad space, with a market share that once exceeded 98%. However, according to the data, in early May, Pump.fun's daily token market share sharply dropped to 56.2%. LetsBonk holds a 29% market share, while Launchlab accounts for 7%. This decline marks the first time Pump.fun has faced real competition, highlighting the rise of new challengers.

• The meme craze fades and income plummets

The trading volume on Pump.fun has dropped from 118.9 billion USD in January 2025 to just 25.1 billion USD, a decrease of 79%.

As the number of tokens created on the platform steadily declines, daily revenue has also sharply decreased. This shift indicates that interest in the issuance of speculative meme coins is rapidly waning. In May, the Pump.Fun platform generated $46.6 million in revenue, a decrease of 42.85% from $137 million in January.

The main advantage of Pump.fun lies in its rapid issuance and instant trading features, but it lacks a unique technology or economic model to protect its market position. Its revenue is highly dependent on the overall prosperity of the Solana ecosystem; once Solana's liquidity or user activity declines, Pump.fun's trading volume and revenue will be directly affected.

2. Valuation

The only perspective that can support such a high valuation of Pump is its cash flow revenue. Since its launch in March 2024, its revenue has approached 700 million USD.

We simply use P/S (Price-to-Sales Ratio) as a metric to measure valuation. A low P/S may indicate that the valuation is undervalued, while a high P/S reflects the market's optimistic expectations for future growth. Pump.fun has a P/S ratio of 9.1, based on a $4 billion valuation and approximately $440 million in annualized revenue.

General Scope:

• Undervalued range: P/S < 5, may indicate that the project is undervalued, with income relative to market value being relatively high, suitable for value investors to pay attention to.
• Reasonable range: P/S 5--20, reflecting that the project has a stable income stream, and the market has certain expectations for its growth, commonly seen in mature DeFi, Layer 1/2 protocols, etc.
• Overvaluation range: P/S > 20, which may indicate that the market has overly high expectations for the project's future growth or there is a speculative bubble, and risks should be monitored.

Overall, the current valuation of 4 billion carries a high risk, especially if revenues continue to be sluggish or competition further erodes market share. It is recommended to closely monitor its revenue recovery, the execution of token sales, and the overall performance of the Solana ecosystem.

2. Policy Regulation

1.【6.3】The newly elected President of South Korea, Lee Jae-myung, has promised to promote the development of cryptocurrency ETFs and the Korean won stablecoin.

• Promote the legalization of spot crypto ETFs: Lee Jae-myung has promised to support the legalization of Bitcoin and cryptocurrency spot exchange-traded funds (ETFs) to attract investors and integrate the South Korean crypto market with the global market.
• Issue Korean Won Stablecoin: He plans to launch a stablecoin pegged to the Korean Won, aiming to curb capital outflow, enhance Korea's financial sovereignty, and provide local investors with a more stable cryptocurrency investment tool. According to data from the Bank of Korea, in the first quarter of 2025 alone, the trading volume of stablecoins pegged to the US dollar reached 57 trillion Korean Won, accounting for more than half of the total trading volume of stablecoins.
• Guiding institutional investment: Lee Jae-myung plans to guide national institutions such as the National Pension Service of Korea to allocate cryptocurrency assets, which is seen as a bold policy. He believes that the entry of institutional investment will significantly enhance market size and may drive mainstream cryptocurrency asset prices, such as Bitcoin, to new highs. The National Pension Service of Korea is one of the largest pension funds in the world, with an asset management scale exceeding $800 billion. If a portion is allocated to cryptocurrency assets, it will have a profound impact on the market.
• Regulatory Optimization: South Korea's current cryptocurrency regulation is relatively strict. The Specific Financial Transaction Information Act of 2021 requires exchanges to conduct real-name verification and operate with high compliance, which limits market flexibility. Lee Jae-myung plans to reduce the tax burden and trading fees on cryptocurrency transactions through policy adjustments, lighten the investment burden on retail and institutional investors, attract more market participants, and may revise the high compliance requirements in the Specific Financial Transaction Information Act (implemented in 2021) to enhance the operational efficiency of exchanges.

2.【6.2】The Singapore financial regulators will ban unlicensed overseas cryptocurrency services

All crypto service providers registered or operating in Singapore must cease providing services to overseas customers by June 30, 2025, if they do not obtain a DTSP license. The MAS has clearly stated that there is no grace period.

• Strict DTSP licensing requirements:

All entities registered or established in Singapore, whether providing digital token services domestically or abroad (including token issuance, trading, custody, transfer, node operation, consulting, and publishing research reports), must obtain a DTSP license issued by MAS. Alternatively, they must hold an existing license under the Payment Services Act, the Securities and Futures Act, or the Financial Advisers Act. Companies that do not comply with the regulations will face severe penalties, including fines of up to 250,000 SGD (approximately 200,000 USD) and possible imprisonment.

• Broad definition of "business premises":

"Business premises" includes any location used for conducting business (even mobile stalls), with a very broad scope. Employees of overseas companies working from home may be exempt, but the definition is vague, and MAS has the final interpretation.

• The definition of digital token services is broad:

Covering token issuance, trading, custody, consulting, and publishing analysis or research reports related to digital tokens (in electronic, printed, etc. forms), even KOLs publishing investment research content may require permission.

• No transition period and strict approval:

The new regulations will take effect directly on June 30, 2025, with no transition period. MAS stated that it will approve DTSP licenses with "extreme caution" and will only grant approval in "very limited circumstances," with a very high compliance threshold.

MAS also allows overseas company employees to work from home in Singapore, but the definition of "employees" is vague, and whether project founders or shareholders are considered employees is decided by MAS.

The third phase of the FSM bill (effective June 30, 2025) marks Singapore's transition from "crypto-friendly" to stringent regulation through a strict DTSP regulatory framework, ending the era of regulatory arbitrage. Key points include extensive licensing requirements, vague definitions of "business premises", a wide range of covered services, no transition period, and strict AML/CFT measures. In the short term, small and medium-sized projects may withdraw or merge with large institutions such as trading platforms due to high compliance costs. In the long term, the new regulations may enhance market trust but could weaken Singapore's attractiveness as a Web3 innovation hub. In the coming month, Hong Kong, Dubai, Tokyo, Malaysia, and the United States may become preferred locations for project withdrawals.

3. [6.4] A large bank plans to allow customers to use Bitcoin ETF as collateral for loans.

When BTC can be used as collateral for loans, its financial attributes are significantly enhanced, transforming from "static asset" to "liquid capital", increasing its capital utilization rate, valuation premium, and overall market demand. Customers can obtain loans by using Bitcoin ETFs as collateral without having to sell their assets, providing investors with new ways to utilize funds and optimize investment strategies.

As a global systemically important bank (G-SIB), its acceptance of Bitcoin ETFs as collateral indicates that crypto assets are being recognized by mainstream financial institutions as legitimate investment tools, similar to gold or stocks. This grants Bitcoin ETFs a "hard asset" status, which may encourage other banks to follow suit, further enhancing the institutional acceptance of crypto assets.

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