Solana News Today: Pump.fun raises $500 million in 12 minutes via Solana-based ICO driven by retail FOMO

Pump.fun, a Solana-based platform for meme token creation, achieved a record $500 million initial coin offering (ICO) in under 12 minutes on July 12, 2025, underscoring the power of retail FOMO (fear of missing out) in the crypto market. The sale offered 12.5% of its total 1 trillion PUMP tokens, with over 10,000 wallets participating, many pre-funded via the platform’s PumpSwap exchange. The transaction volume reached $448 million directly on Solana, leveraging its high-speed, low-fee infrastructure to execute the sale swiftly. Token transfers were locked for 72 hours post-sale, amplifying urgency and speculative fervor among investors [1].

The ICO followed a $700 million private sale in 2025, bringing total capital raised to $1.2 billion and valuing Pump.fun at $4 billion. Post-raise, the platform announced strategic moves to solidify its market position, including acquiring Kolscan, a Solana wallet analytics tool, and allocating PumpSwap trading fees—exceeding $60 million in the first 48 hours—to token buybacks. These actions aim to reduce circulating supply and bolster PUMP’s price trajectory.

The rapid fundraising highlighted both the platform’s appeal and inherent risks. On-chain data revealed tactics such as whales seeding 500 wallets with $400 each to circumvent anti-Sybil protections, simulating broader retail demand. Exchanges like Gate.io and KuCoin faced technical issues during the sale, temporarily restricting access for some users, while Pump.fun issued reimbursements and reiterated its focus on “accessible, high-speed distribution” in decentralized finance (DeFi) trends [1].

Retail FOMO was further fueled by Pump.fun’s viral mechanics, including livestreamed token launches and no-code creation tools. The platform accounted for 71% of Solana’s token launches by late 2024, but over 98.6% of its 7 million+ tokens have since collapsed in value due to pump-and-dump schemes or rug pulls, according to Solidus Labs. PUMP’s price spiked to $0.007 on Hyperliquid within hours of the ICO, a 75% premium over its $0.004 offering price, before stabilizing at $0.006, reflecting speculative front-running and immediate liquidity demand [1].

Despite its success, Pump.fun faces regulatory and ethical scrutiny. A U.S. class-action lawsuit accuses the platform of facilitating unregistered securities and pump-and-dump schemes, while the UK’s Financial Conduct Authority (FCA) has labeled it unauthorized, banning local participation. Critics argue the platform monetizes Gen Z’s FOMO without investor safeguards, with Haseeb Qureshi of Dragonfly noting PumpSwap’s nine-figure revenue potential. Meanwhile, tech challenges, including API outages on partnered exchanges, exposed vulnerabilities in scaling high-stakes DeFi projects [1].

The event marks a new phase in crypto’s retail cycle, blending meme-driven virality with DeFi’s speed and low barriers to entry. By integrating creator revenue sharing—returning 50% of PumpSwap fees to token creators—Pump.fun is experimenting with gamified value loops akin to Twitch, where content and tokens merge. However, the high volatility and lack of fundamental project value raise questions about its sustainability. For every successful investor, countless others are left holding depreciated assets, illustrating the double-edged nature of FOMO-driven markets [1].

Source: [1] [How Pump.fun raised $500M in 12 minutes, and what it says about retail FOMO] [https://cointelegraph.com/news/how-pump-fun-raised-500m-in-12-minutes-and-what-it-says-about-retail-fomo]