Weekly Market Hotspot Review (6.3 - 6.7): Pump.Fun issue coin and Analysis of New Korean Policies

This week, the overall cryptocurrency market is in a state of fluctuation, seeking direction, mainly experiencing a rebound followed by a decline. On the positive side, a certain trading platform's ecosystem token has seen a general rise due to a liquidity promotion campaign, and the phone conversation between Trump and Xi Jinping has hinted at a diplomatic trend. Circle's listing has performed well under stablecoin policies. The negative factors are mainly focused on steel tariffs and the dispute between Trump and Musk on Friday, while interest rate cuts have yet to arrive. This article will focus on Pump.Fun issuing coins and the cryptocurrency policies of South Korea and Singapore.

1. Pump.Fun issue coin

On June 4th, it was reported that pump.fun plans to conduct a $1 billion token sale at a valuation of $4 billion, targeting both public and private investors, with the token possibly being issued in the next two weeks. This news quickly sparked widespread discussion in the market.

1.Issue Coin Opportunity

• Market Liquidity

In January 2025, Trump issued the $TRUMP token based on Solana, attracting a lot of market attention. In February 2025, Argentine President Milei launched the $LIBRA token, but quickly fell into scandal. These two massive meme issuance events quickly consumed the market liquidity at the time.

According to analysis company data, about half of the holders of $TRUMP and $MELANIA tokens had not purchased Solana altcoins before, and 47% of buyers created their wallets on the same day. This influx caused Doge to drop 6% and PEPE to drop 10.5%.

The TVL of Solana dropped by 10% during the issuance of $LIBRA, while Ethereum only saw a 2% decline in the same period. On-chain activity on Solana plummeted from a peak daily trading volume of $35.5 billion on January 17 to $3.1 billion on February 17. These events triggered panic in the market, leading many investors to withdraw their funds, resulting in an overall decrease in liquidity.

• Platform Competition

After last year's meme craze, Pump.Fun basically monopolized the Solana meme track. However, its "earn coin and sell" strategy and negative impact on the Solana ecosystem led to Believe and LetsBONK.fun joining the competition, quickly eroding 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, at the beginning of May, its daily token market share plummeted to 56.2%. LetsBonk holds a 29% market share, while Launchlab accounts for 7%, marking the first time Pump.fun faces real competition.

• The Meme Craze Fades and Income Plummets

The trading volume of Pump.fun dropped from 11.89 billion USD in January 2025 to 2.51 billion USD, a decrease of 79%. The number of tokens created on the platform has steadily declined, and daily revenue has sharply fallen, indicating a rapid decline in interest in the issuance of speculative meme coins. In May, Pump.Fun's platform revenue was 46.6 million USD, down 42.85% from 137 million USD in January.

Pump.fun's main advantage lies in rapid issuance and instant trading, 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 support for the high valuation of Pump is its cash flow revenue. Since its launch in March 2024, the cumulative revenue has approached 700 million US dollars.

Using P/S (Price/Sales Ratio) to measure valuation, Pump.fun's P/S ratio is 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, 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.
• Overvalued 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 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 pay attention to its revenue recovery, the effectiveness of token sales, and the overall performance of the Solana ecosystem.

2. Policy Regulation

1. South Korea's new president Lee Jae-myung promises to promote the development of crypto ETFs and the Korean won stablecoin

• Promote the legalization of spot crypto ETFs: Support the legalization of Bitcoin and cryptocurrency spot ETFs to attract investors and facilitate the integration of the South Korean crypto market with the global market.
• Issue Korean Won Stablecoin: Plans to launch a stablecoin pegged to the Korean Won to curb capital outflow, enhance financial sovereignty, and provide local investors with a stable investment tool for crypto assets. According to data from the Bank of Korea, the trading volume of USD-pegged stablecoins reached 57 trillion won in the first quarter of 2025, accounting for more than half of the total trading volume of stablecoins.
• Guide institutional investment: Plan to guide national institutions such as the National Pension Fund to allocate cryptocurrency assets. The entry of institutional investments will significantly enhance market scale and may drive mainstream cryptocurrency prices to new highs. The National Pension Fund of Korea is one of the largest pension funds in the world, with assets under management exceeding $800 billion. If a portion is allocated to cryptocurrency assets, it will have a profound impact on the market.
• Regulatory Optimization: Plans to reduce the tax burden and costs of cryptocurrency trading through policy adjustments, alleviating the burden on retail and institutional investors, attracting more market participants, and possibly revising the high compliance requirements in the "Specific Financial Transaction Information Act" to enhance the operational efficiency of exchanges.

2. The Singapore financial regulatory authority will prohibit unlicensed overseas cryptocurrency services

All cryptocurrency service providers registered or operating in Singapore must cease providing services to overseas clients by June 30, 2025, if they have not obtained a DTSP license, with 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 or hold an existing license as stipulated under the Payment Services Act, Securities and Futures Act, or Financial Advisors Act. Violating companies will face fines of up to 250,000 SGD and possible imprisonment.

• Broad definition of "business premises":

"Business premises" includes any location used for conducting business, covering a wide range; overseas company employees working from home may be exempt, but the definition is vague, and regulatory authorities have the final interpretative power.

• The definition of digital token services is broad:

Covering token issuance, trading, custody, consulting, and the publication of analyses or research reports related to digital tokens, 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. Regulatory agencies have stated that they will approve DTSP licenses with "extreme caution" and will only grant approval in "very limited circumstances," with high compliance thresholds.

Regulatory authorities allow overseas company employees to work from home in Singapore, but the definition of "employee" is vague, and whether project founders or shareholders fall under the category of employees is determined by the regulatory authorities.

The third phase of the FSM bill has passed a strict DTSP regulatory framework, marking Singapore's shift from "crypto-friendly" to strong regulation, ending the era of regulatory arbitrage. In the short term, small to medium-sized projects may withdraw due to high compliance costs or merge with large institutions. 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. 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 a "static asset" to "liquid capital," improving capital utilization rates, valuation premiums, and overall market demand. Clients can obtain loans by collateralizing Bitcoin ETFs without the need to sell assets, providing investors with new ways to utilize funds and optimizing investment strategies.

As a globally systemically important bank, 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. Granting Bitcoin ETFs "hard asset" status may encourage other banks to follow suit, further enhancing institutional acceptance of crypto assets.