This week, the overall crypto market is in a game of shock and direction, mainly rebounding and falling. On the positive side, Binance ecosystem tokens have seen a general rise due to the launch of liquidity promotion activities with USD1, Trump and Xi Jinping held a telephone conversation to reveal the direction of the peace talks, and Circle's listing performed well under the stablecoin policy; the negatives mainly focus on steel tariffs and the Trump-Musk war on Friday, and the interest rate cut has not yet arrived. This sharing mainly focuses on Pump.Fun's coin issuance and South Korea & Singapore's crypto policies.

1. Pump.Fun coin issuance

According to sources on June 4, pump.fun plans to sell $1 billion worth of tokens at a valuation of $4 billion. The tokens will be sold to the public and private investors, and it is hinted that the tokens may be issued in the next two weeks. This news quickly caused widespread discussion in the market.

1. Coin issuance opportunity

• Market Liquidity

On January 18, 2025, Trump issued the Solana-based $TRUMP token on the eve of his inauguration, which attracted a lot of market attention and boosted speculation in the meme coin market in the short term. Subsequently, in February 2025, Argentine President Milley launched the $LIBRA token, but the token quickly became embroiled in scandal, plummeted in value, and raised market concerns about the regulation of political token issuance. The two massive meme issuance activities quickly drained the market liquidity at the time.

According to data from the analysis firm Chainalysis, half of the wallet addresses of $TRUMP and $MELANIA token holders have no history of purchasing Solana-based altcoins. In addition, about 47% of buyers created their wallets on the day they obtained these tokens. Under such flow absorption, Doge fell 6% and PEPE fell 10.5%.

Solana’s TVL fell by 10% during the $LIBRA issuance, while Ethereum’s TVL fell by only 2% during the same period. After reaching a peak daily trading volume of $35.5 billion on January 17, on-chain activity on Solana dropped sharply to $3.1 billion on February 17. Both events triggered panic in the market, and many investors withdrew funds from the cryptocurrency market, resulting in a decline in overall liquidity.

• Platform siege

Since last year's meme craze, Pump.Fun has basically monopolized the Solana meme track, but its practice of selling coins as soon as they make money and its negative impact on the Solana ecosystem have led to Believe and LetsBONK.fun joining the melee, and they are rapidly eroding Pump.Fun's leading position and market share.

Pump.fun has long dominated the Solana memecoin launchpad space, with a market share of more than 98%. However, according to Lookonchain data, Pump.fun's daily token market share fell sharply to 56.2% in early May. LetsBonk has a 29% market share and Launchlab has 7%. This decline marks the first time Pump.fun has faced real competition, highlighting the rise of new competitors.

• The meme craze fades and revenue plummets

Trading volume on Pump.fun has dropped 79% from $118.9 billion in January 2025 to just $25.1 billion.

The sharp drop in daily revenues comes as the number of tokens created on the platform has steadily declined. This shift suggests that interest in speculative meme coin issuance is fading quickly. The Pump.Fun platform generated $46.6 million in revenue in May, down 42.85% from $137 million in January.

Pump.fun's main advantage lies in its fast issuance and instant trading characteristics, 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 reason that Pump's valuation is so high is its cash flow income. It can be seen that since it went online in March 2024, its revenue has reached nearly 700 million US dollars.

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

General scope:

• Undervalued range: P/S < 5, which may indicate that the project is undervalued and its revenue is relatively high relative to its market value, making it 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. It is common in mature DeFi, Layer 1/2 protocols, etc.
• Overvaluation range: P/S > 20, which may indicate that the market has too high expectations for the project's future growth or there is a speculative bubble, so be wary of risks.

Overall, the current $4 billion valuation is risky, especially if revenue continues to be sluggish or competition further erodes market share. We recommend paying close attention to its revenue recovery, token sale execution, and the overall performance of the Solana ecosystem.

II. Policy Supervision

1.【6.3】The new South Korean President Lee Jae-myung promised to promote the development of crypto ETFs and Korean won stablecoins

• Promote the legalization of spot crypto ETFs: Lee Jae-myung pledged to support the legalization of Bitcoin and cryptocurrency spot exchange-traded funds (ETFs) to attract investors and promote the Korean crypto market to integrate with the world.
• Issuing a Korean won stablecoin: He plans to launch a stablecoin anchored by the Korean won , aiming to curb capital outflows, enhance South Korea's financial sovereignty, and provide local investors with more stable crypto asset investment tools. According to data from the Bank of Korea, in the first quarter of 2025 alone, the transaction volume of stablecoins pegged to the US dollar reached 57 trillion won, accounting for more than half of the total stablecoin transaction volume.
• Guide institutional investment: Lee Jae-myung plans to guide national institutions such as the National Pension Fund of Korea to allocate crypto assets, which is seen as a bold policy. He believes that the entry of institutional investment will significantly increase the market size and may push the prices of mainstream crypto assets such as Bitcoin to new highs. The National Pension Fund of Korea is one of the largest pension funds in the world, with an asset management scale of over US$800 billion. If part of it is allocated to crypto assets, it will have a profound impact on the market.
• Optimize supervision: South Korea's current crypto regulation is relatively strict. The 2021 Specific Financial Transaction Information Act requires exchanges to conduct real-name authentication and high compliance operations, which limits market flexibility. Lee Jae-myung plans to reduce the tax burden and transaction fees of crypto transactions through policy adjustments, reduce the investment burden of retail investors and institutions, attract more market participants, and may revise the high compliance requirements in the Specific Financial Transaction Information Act (implemented in 2021) to improve the operating efficiency of exchanges.

2. [6.2] Singapore’s financial regulator will ban unlicensed overseas cryptocurrency services

All encryption service providers registered or operating in Singapore, if they do not obtain a DTSP license, must stop providing services to overseas customers before June 30, 2025. MAS has made it clear that there will be no buffer period.

• Strict DTSP licensing requirements:

All entities registered or established in Singapore that provide digital token services (including token issuance, trading, custody, transfer, node operation, consulting and publishing research reports) whether onshore or offshore must obtain a DTSP license issued by MAS. Or hold an existing license under the Payment Services Act, the Securities and Futures Act or the Financial Advisors Act. Companies that fail to comply will face severe penalties, including fines of up to S$250,000 (approximately US$200,000) and possible imprisonment.

• Broad definition of “place of business”:

“Business premises” includes any location used to conduct business (even mobile stalls), and has a very wide coverage. Overseas company employees working from home may be exempted, but the definition is vague and MAS has the final say on interpretation.

• Digital token services are broadly defined:

It covers token issuance, trading, custody, consulting and publication of analysis or research reports related to digital tokens (electronic, printed, etc.). Even KOLs may need permission to publish investment research content.

• 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 "extremely cautiously" and will only approve them in "extremely limited circumstances", and the compliance threshold is extremely high.

In addition, MAS allows employees of overseas companies to work from home in Singapore, but the definition of "employee" is vague. Whether project founders or shareholders are employees is decided by MAS at its sole discretion.

The 57 institutions that may be exempted at present are:

The third phase of the FSM Act (effective June 30, 2025) passes a strict DTSP regulatory framework, marking Singapore's shift from "crypto-friendly" to strong regulation, ending the era of regulatory arbitrage. The key points include extensive licensing requirements, vague "place of business" definitions, a wide range of 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 Upbit Singapore due to high compliance costs. In the long run, the new regulations may enhance market trust, but may weaken Singapore's attractiveness as a Web3 innovation center. In the next month, Hong Kong, Dubai, Tokyo, Malaysia and the United States may become preferred locations for project parties to withdraw.

3.【6.4】JPMorgan Chase plans to allow customers to use Bitcoin ETF as loan collateral

When BTC can be used as collateral for loans, its financial attributes are significantly enhanced, transforming from a "static asset" to a "liquid capital", which improves its capital utilization, valuation premium and overall market demand. Customers can obtain loans by pledging Bitcoin ETFs without having to sell assets, which provides investors with a new way to use funds and optimize investment strategies.

As a global systemically important bank (G-SIB), JPMorgan Chase's acceptance of Bitcoin ETF as collateral shows that crypto assets are being recognized by mainstream financial institutions as legitimate investment tools, similar to gold or stocks. Giving Bitcoin ETF a "hard asset" status may encourage other banks (such as Goldman Sachs and Morgan Stanley) to follow suit, further enhancing institutional acceptance of crypto assets.

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Written by: Nora / WolfDAO

Editorial review: Mat / Nora

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