Pump.Fun plans to issue coin with a valuation of $4 billion. New policies in South Korea promote encryption development.

The crypto market this week showed an overall volatile trend, mainly characterized by a rebound followed by a fall. On the positive side, the ecosystem tokens of a certain trading platform rose due to liquidity promotion activities, and the phone call between the leaders of China and the U.S. conveyed signals of peace talks, while a certain payment company's IPO performed outstandingly. Negative factors are concentrated on steel tariffs and the dispute between Trump and Musk, while interest rate cuts have yet to materialize. This article will focus on the Pump.Fun issuing coin plan and the trends of crypto policies in South Korea and Singapore.

It is reported that Pump.fun plans to conduct a $1 billion token sale at a $4 billion valuation, targeting both public and private investors, with issuance expected in two weeks. This news quickly sparked heated discussions in the market.

Pump.Fun chose to issue coin at this time for several reasons: Firstly, the large-scale issuance of meme coins in the early stages has led to a decrease in market liquidity. Secondly, the rise of competitors is eroding Pump.Fun's market share. Finally, the decline of the meme craze has resulted in a significant drop in platform revenue. Data shows that Pump.Fun's revenue in May was $46.6 million, down 42.85% from $137 million in January.

From a valuation perspective, Pump.Fun's high valuation is primarily based on its strong cash flow revenue. Since its launch in March 2024, cumulative revenue has approached $700 million. Measured by the price/sales ratio (P/S), Pump.fun's P/S is 9.1, which is within a reasonable range but still carries a risk of being overvalued.

In terms of policy, the newly elected president of South Korea has promised to promote the legalization of crypto ETFs, issue a Korean won stablecoin, guide institutional investment in crypto assets, and optimize the regulatory environment. These measures aim to promote the development of the Korean crypto market, attract investors, and align with the global market.

Singapore's financial regulatory authority has announced that it will prohibit unlicensed overseas crypto services. The new regulations require all crypto service providers registered or operating in Singapore to obtain a DTSP license by June 30, 2025, or they must cease providing services to overseas clients. This marks a shift for Singapore from being "crypto-friendly" to having strong regulations, which could lead to small and medium-sized projects withdrawing or merging with larger institutions.

In addition, a large bank plans to allow customers to use Bitcoin ETFs as collateral for loans. This initiative will significantly enhance the financial attributes of Bitcoin, improve its capital utilization rate and market demand, while also indicating that encryption assets are being recognized as legitimate investment tools by mainstream financial institutions.