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 in a game of fluctuating to find direction, mainly characterized by rebounds and declines. On the positive side, the ecosystem tokens of a certain trading platform saw a widespread increase due to a liquidity promotion activity, while the phone call between Trump and Xi Jinping hinted at peace talks, and Circle performed impressively under stablecoin policies; on the negative side, the focus is mainly on steel tariffs and the Trump-Musk debate on Friday, while interest rate cuts have yet to arrive. This article mainly focuses on Pump.Fun issue coin, as well as the cryptocurrency policies of South Korea and Singapore.

1. Pump.Fun issue coin

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

1.Issue Coin Opportunity

• Market Liquidity

On January 18, 2025, Trump issued the $TRUMP token based on Solana, attracting significant market attention. Subsequently, in February 2025, Argentine President Milei launched the $LIBRA token, but the token quickly fell into scandal and its value plummeted. The two large-scale meme issuance events rapidly drained the market liquidity at the 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. 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 on January 17, on-chain activity on Solana sharply dropped to $3.1 billion on February 17. These two events triggered panic in the market, causing many investors to withdraw from the cryptocurrency market, leading to an overall decline 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 immediately after earning them and its negative impact on the Solana ecosystem have led to Believe and LetsBONK.fun joining the fray, quickly eating into 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 data, in early May, Pump.fun's daily token market share sharply dropped to 56.2%. LetsBonk held a 29% market share, while Launchlab accounted for 7%. This decline marks the first time Pump.fun faces real competition, highlighting the rise of new competitors.

• The meme craze fades and income drops sharply

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

As the number of tokens created on the platform steadily declines, daily revenue has also plummeted sharply. 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 42.85% decrease from $137 million in January.

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

2. Valuation

The only reason for the high valuation of Pump is its cash flow income. Since its launch in March 2024, it has generated nearly 700 million USD in revenue to date.

We simply use P/S (Price-to-Sales Ratio) as a measure of 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's P/S ratio is 9.1, based on a $4 billion valuation and approximately $440 million in annualized revenue.

General Range:

• Undervalued range: P/S < 5, which may indicate that the project is undervalued, with income relative to market value being relatively high, suitable for value investors' attention.
• 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.
• Overestimation range: P/S > 20, which may indicate that the market has overly high expectations for the project's future growth or that there is a speculative bubble, and risks should be heeded.

Overall, the current valuation of 4 billion carries a high risk, especially if revenue continues to be sluggish or competition further erodes market share. It is advisable 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 new South Korean President 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 promised to support the legalization of Bitcoin and cryptocurrency spot exchange-traded funds (ETFs) to attract investors and facilitate the integration of the South Korean crypto market with the global market.
• Issue Korean Won Stablecoin: He plans to launch a stablecoin pegged to the Korean Won, aimed at curbing capital outflow, enhancing South Korea's financial sovereignty, and providing local investors with a more stable investment tool for cryptocurrency assets. 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 Korean National Pension Service to allocate crypto 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 crypto assets like Bitcoin to new price highs. The Korean National Pension Service is one of the largest pension funds in the world, with assets under management exceeding $800 billion; if a portion is allocated to crypto assets, it will have a profound impact on the market.
• Optimizing Regulation: South Korea's current cryptocurrency regulation is quite strict. The Specific Financial Transaction Information Act enacted in 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, alleviating the investment burden on retail and institutional investors, attracting 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】Singapore financial regulators will ban unlicensed overseas cryptocurrency services

All cryptocurrency service providers registered or operating in Singapore must cease providing services to overseas customers by June 30, 2025, if they have not obtained a DTSP license. MAS has clearly stated that there will be 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 Advisors 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 rights.

• The definition of digital token services is broad:

Covers token issuance, trading, custody, consulting, and the publication of analysis or research reports related to digital tokens (in electronic, printed, etc. forms), and 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 approve them in "very limited circumstances," with a very high compliance threshold.

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

The third phase of the FSM Act (effective June 30, 2025) marks Singapore's shift from "crypto-friendly" to strong regulation through a stringent 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 due to high compliance costs. In the long term, the new regulations could enhance market trust but may 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] JPMorgan plans to allow clients to use Bitcoin ETFs as loan collateral

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

As a globally systemically important bank (G-SIB), JPMorgan's 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.