PANews reported on June 9 that according to Bloomberg, the Solana-based memecoin platform Pump.fun plans to conduct a token sale of up to $1 billion, which has aroused market concerns about its impact on the liquidity of the Solana ecosystem. Market insiders pointed out that if the fundraising lasts for one month, other Solana assets may face the risk of funds being withdrawn during this period. The valuation of this issuance is as high as $4 billion FDV, and some investors question whether its valuation is reasonable, especially in the context of the current overall lack of liquidity of altcoins.

Ryan Watkins, co-founder of crypto investment fund Syncracy Capital, said Pump.fun “may run out of liquidity.” “This raise will be completed in a month. I think any assets in the Solana ecosystem may be sold in the meantime to fund this purchase.”