Crypto Market Weekly Review: Fluctuations and Policy Changes

This week, the crypto market is overall in a state of volatility, primarily focusing on rebounds and declines. On the positive side, a certain trading platform's ecosystem token has experienced a widespread increase due to liquidity promotion activities, and the conversation between the leaders of China and the United States has released signals for peace talks. The negative factors are mainly centered around steel tariffs and the controversy over public figures' remarks on Friday, while the market is still waiting for interest rate cuts. This article will focus on the Pump.Fun token issuance plan and the developments in crypto policies in South Korea and Singapore.

1. Pump.Fun Token Issuance Plan

According to reports, Pump.Fun plans to conduct a $1 billion token sale at a $4 billion valuation, targeting both public and private investors, with a potential launch in two weeks. This news has sparked widespread discussion in the market.

1. Token Issuance Background

• Market liquidity changes

At the beginning of this year, the issuance of political figures' related tokens sparked a large amount of speculative activity, quickly depleting market liquidity. Data shows that these tokens attracted a significant number of new users into the market, but at the same time, it also led to a decline in the prices of other cryptocurrencies and a decrease in on-chain activities.

• Increased competition

Pump.Fun's dominance in the Solana meme track is being challenged, with its market share dropping from 98% to 56.2%. Emerging platforms like LetsBonk and Launchlab are eating into its market share.

• Income plummeted

The trading volume of Pump.Fun dropped from $118.9 billion in January to $25.1 billion, a decrease of 79%. The platform's revenue in May was $46.6 million, down 42.85% from $137 million in January.

2. Valuation Analysis

Based on a valuation of $4 billion and an annualized revenue of approximately $440 million, Pump.Fun's P/S ratio is 9.1. This valuation is within a reasonable range, but considering the declining revenue trend and increasing competition, there is still a risk of being overvalued.

2. Trends in Crypto Policies of South Korea and Singapore

1. Korea's new policy direction

The newly elected president has promised to promote the legalization of encryption ETFs, issue a Korean won stablecoin, guide institutional investment in crypto assets, and optimize the existing regulatory framework. These measures aim to promote the development of the Korean crypto market and attract more investors to participate.

2. Singapore regulatory tightening

The Monetary Authority of Singapore will prohibit unlicensed overseas encryption services. The new regulations require all encryption service providers registered or operating in Singapore to obtain a DTSP license. The regulatory scope is extensive, covering various aspects such as token issuance, trading, custody, and more. The new regulations will come into effect on June 30, 2025, with no transition period.

This policy shift marks Singapore's transition from "crypto-friendly" to stringent regulation, which may affect its status as a Web3 innovation hub. In the short term, small and medium-sized projects may withdraw due to compliance costs or merge with larger institutions.

3. Market Trends

A large financial institution plans to allow clients to use Bitcoin ETFs as collateral for loans. This move will enhance Bitcoin's financial attributes, transforming it from a "static asset" to "liquid capital," and may encourage other financial institutions to follow suit, further increasing the institutional acceptance of crypto assets.