Pumpfun, a token launch platform on Solana, is preparing to launch its own token and conduct an IPO using the Dutch Auction model. The platform is currently collaborating with centralized exchanges (CEXs) to develop the necessary infrastructure for the offering.
Also known as a “descending price auction,” the Dutch Auction starts with a high starting price that gradually decreases at a fixed rate until participants bid at their desired level. The method was previously discussed by Binance co-founder He Yi in a meeting as a potential innovation for token initial exchange offerings (IEOs).
Pumpfun reportedly generated around $572 million in fees and transferred around $386.8 million to Kraken. However, the project is facing legal challenges, with US lawyers filing lawsuits that could impact the eventual token issuance. In response, Pumpfun co-founder Alon dismissed the speculation as “rumors about a potential Pumpfun token,” but hinted that the platform is committed to rewarding its users.
According to the documents obtained, Pumpfun is in talks with CEXs regarding its tokenization plans. An internal document from December 2024 stated that the total Pumpfun token supply will be 420 million, with 210 million allocated for public sale at launch. The team would retain 25% of the supply, while early investors would receive 22.05%, both subject to a one-year cap and a three-year monthly vesting schedule. However, these details may have changed since then.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/rumors-that-the-most-popular-platform-of-the-recent-times-will-issue-an-altcoin-and-organize-an-airdrop/