The community expects a win-win celebration, not just the project party being prosperous!
Author: 0x9999in1, MetaEra
Cumulative revenue exceeds $520 million.
The total number of tokens deployed is about 7.41 million.
The number of users is 7.41 million.
This is the data accumulated by Pump.fun in just one year, and it can be said that Pump.fun's leading position and revenue performance in the Mmme track is very similar to the unparalleled OpenSea in 2021. Both of them seized the opportunity and opportunity in the Meme and NFT tracks, and quickly rose to become an almost irreplicable success model.
Pump.fun's token issuance model: Dutch auction causes public outrage
On February 9, Wu Blockchain reported that Pump.fun is preparing to issue tokens and conduct a public offering, which will adopt the Dutch auction model, and is cooperating with a centralized exchange to develop the system.
Earlier, Binance co-founder He Yi also mentioned the use of the Dutch auction model to innovate token IEO mode in the AMA. The Dutch auction, also called the "descending price auction", starts the auction price from high and decreases at a fixed rate, and participants bid at the price they think is appropriate.
The further details of this Dutch auction come from KOL He Bi: Because the project is huge and has high requirements, the public offering systems of major exchanges currently do not meet the needs of Pump.fun, and almost all domestic first, second and third-tier exchanges are developing Dutch auction systems for Pump.fun. And it is currently known that the tokens have no airdrops, and 50% of the tokens are Dutch auctions.
So far, no relevant exchange has released more cooperation details and customized messages. However, the news has caused a huge uproar at the retail level. Of course, it is a win-win situation for Pump.fun to issue tokens while making so much profit, but the problem lies in the Dutch auction model, as retail investors not only cannot obtain airdrop benefits, but also need to participate in the more intense Dutch auction competition, and the investment cost of retail investors is likely to be high, but the risk of obtaining benefits is also increasing. At this stage, Pump.fun's Dutch auction model is more like a bloodthirsty and greedy sale.
The Dutch auction model was once popular during the NFT explosion stage, and many top-notch projects were quite fond of NFTs being Minted through the Dutch auction model, the core feature of which is to maximize the sales revenue of NFTs. Even if the Mint stage is not smooth in the early stage, the gradually decreasing selling price will also prevent the NFT from being stillborn. But for investors, this is more like a game, with more costs and having to participate in the fierce Gas War to successfully purchase NFTs, forming a serious internal circulation reaction in the investor group. In the end, the risk is borne by the participants, and the profits are eaten up by the sellers.
Pump.fun co-founder Alon responds: Token issuance is a false message
As the news of Pump.fun's token issuance continued to ferment, Pump.fun's co-founder Alon posted on social media saying: "Seeing rumors about the possible launch of a Pump.fun token, these are false messages. It is recommended not to believe any information not published by the Pump.fun Official Twitter. In the past year of development, the Pump.fun team has mainly focused on improving the product, but has always been committed to giving users the due return, good things take time."
But some netizens also believe that: Recently, lawsuits have been filed against Pump.fun in multiple places in the United States, which may affect whether it will ultimately issue tokens. Perhaps Pump.fun will wait for a period of time and choose the right time to issue tokens, or it may also modify the token economic model due to the dissatisfaction with the "Dutch auction model", leaving a portion for airdrops.
Will OpenSea issue tokens: IPO or token issuance? Struggling and hesitating
At the peak, although OpenSea did not profit from GAS, the high 2.5% commission fee made OS earn a lot. In 2022, many people believe that OpenSea, which has raised $1.3 billion in financing, is unlikely to issue tokens, and is more likely to raise funds through an IPO.
However, in the face of a sharp decline in revenue, OpenSea is facing the dilemma of dying without issuing tokens, and giving back to users and the community is a tradition of Web3. In the past, Uni was forced to issue tokens by Sushi to regain the lost users, and OpenSea is also facing the risk of losing a large number of users to Blur if it does not issue tokens.
Finally, in the competition between competitors, it lost the first place in the NFT trading market.
Finally, on November 4, 2024, we saw a glimmer of hope regarding whether OpenSea will issue tokens. The OpenSea Official Twitter announced that it will launch a "brand new OpenSea" in December and opened a site for registering test addresses, which has already attracted more than 700,000 addresses on the waiting list.
But just yesterday (February 11), according to an official announcement from the OpenSea Foundation: The rumors on the X platform today are not true, and users are reminded to only trust the links published by the official account to avoid being deceived. Previously, there were rumors about OpenSea's TGE, but the official has clearly denied it.
Summary
The rise of Pump.fun and OpenSea is more dependent on market environment, product strength, first-mover advantage and other factors, but their subsequent development is more dependent on the contribution of transaction fees from retail investors. When retail investors hope to get platform feedback, if the platform's strategy does not meet the expectations of retail investors, or even goes against the grain, it may further prove the principle of "he who wins the hearts of the people wins the world". Because the community expects a win-win celebration, not just the project party being prosperous!
