Viewpoint: The TGE of Pump.fun is Favourable Information for Bonk and its ecosystem.

Author: Unipcs ( aka 'Bonk Guy' )

Compiled by: Deep Tide TechFlow

Recently, many people have been asking me about my views on the Pump.fun TGE (Token Generation Event) and its $PUMP token.

As this is one of the most anticipated TGE events in recent times, and many people are starting to compare it with BonkFun—after all, BonkFun has been in the spotlight since surpassing Pump.fun—I feel it's necessary to organize my thoughts.

Here is my current understanding of the $PUMP token:

It is said that they have raised 1 billion dollars, with a valuation of 4 billion dollars.

The valuation of the token in the prediction market and over-the-counter trading market is expected to reach between 7 billion and 8 billion dollars after the TGE, with some trading institutions even believing that its valuation could be as high as 10 billion dollars.

So, what does this mean for the $BONK, BonkFun ecosystem, and the broader trenches (grassroots users) and meme coin market?

I previously made some comments on X, stating that it is reasonable for the $PUMP token valuation to easily reach 4 billion dollars.

I also stated that it is easy to rank among the top 10 to 15 cryptocurrency projects.

These comments are made based on a comparison of the historical and expected income of Pump.fun with the valuations of other crypto projects.

However, at that time, I did not anticipate that BonkFun would surpass Pumpfun so quickly and forcefully.

That said, here are my updated views:

I don't think Pump.fun has completely lost its influence, but I do believe that BonkFun is likely to continue maintaining its leadership position in the industry for the foreseeable future.

Here are my reasons:

BonkFun's positioning of "supporting creators/supporting users/supporting the Solana ecosystem" is its significant advantage.

The powerful support culture within the BONK ecosystem has gradually permeated the tokens launched through BonkFun. This culture is difficult for other projects to replicate quickly.

Pump.fun, as a tokenless protocol, once had tremendous momentum, especially in anticipation of the TGE and potential airdrops. However, in the days or weeks leading up to the TGE, it was strongly surpassed by BonkFun. It is hard to imagine that it can sustain a recovery of its previous market share after the TGE.

Although all launch platforms are troubled by bot issues, I believe that a significant portion of the activity on Pump.fun comes from those active advanced users and bots who are trading actively to gain profits while looking forward to airdrops. After all, Pump.fun was once the most profitable protocol in the crypto space, and this phenomenon is to be expected. However, I think this activity will slow down or even stop after the TGE, as the incentives have ended.

The above factors make the growth of BonkFun even more impressive! Its growth is entirely organic and driven by its close integration with the Solana ecosystem, without any promises or expectations of tokens or incentives—because the $BONK token existed before BonkFun was launched and has consistently stated that platform fees will be used to buy back and burn BONK.

It is worth noting that much of BonkFun's growth comes from its rapid popularity worldwide, particularly its cultural association with significant communities. For instance, the widespread acceptance of BonkFun in the Chinese market has made it a top launch platform in the region, attracting a large number of users to Solana and launching a record number of tokens on it, far exceeding other blockchains. This is one of BonkFun's core advantages and an area of its continued growth—an important field that many may still not fully recognize today.

In addition, this does not take into account some strategic measures that BonkFun may take in the future.

Overall, I believe that BonkFun has strategically positioned itself favorably and is expected to maintain a leading position in the launch platform sector for the long term, of course, this also requires smooth advancement!

I admit that Pump.fun may release some interesting announcements before its TGE in an attempt to regain market share... but even so, I believe its impact will be temporary.

The TGE of PUMP is a favorable catalyst for promoting the development of $BONK, BonkFun, and the BonkFun ecosystem.

Many people have been promoting the upcoming $PUMP TGE as an event that will drain trench funds, top meme coins, and the liquidity of the BonkFun ecosystem.

If the TGE happened 1-2 weeks ago, this statement might have some merit, but I don't think it will be like this in the future.

BonkFun has strongly surpassed Pumpfun at such a close time to the TGE, and this decisive victory will curb the market's frenzy for $PUMP and avoid the situation where the liquidity of meme coins and trench funds is drained. Considering the recent market context, a full sell-off of high-confidence assets to switch to $PUMP is clearly unreasonable.

It is becoming increasingly clear that the real $PUMP TGE trading now is actually the $BONK and BonkFun ecosystem...

Although the tokenomics of $PUMP remains very opaque and we know very little about its specifics, there are a few points that we are clear about:

50% of the transaction fees from BonkFun are used to purchase and burn $BONK tokens.

A total of 58% of BonkFun's transaction fees are used in some form to purchase $BONK tokens.

I can't predict what the final tokenomics of $PUMP will look like, but it's hard for me to see how it can be more competitive than BonkFun's current model.

Especially considering that Pump.fun, while raising $1 billion and achieving a valuation of $4 billion, is still an extremely profitable company (having earned nearly $1 billion in the past year and a half!).

Therefore, I believe the real $PUMP TGE transaction is the $BONK and BonkFun ecosystem:

If $PUMP raises funds at a valuation of $4 billion and is assessed by a third party to be worth up to $10 billion, then considering $BONK's recent market dominance and its potential for continued future dominance, how much should $BONK be worth?

More importantly, BonkFun is just one of many ecological products that are adding buying and burning pressure to $BONK.

With a current market value of $1.8 billion for $BONK, it is clearly severely undervalued.

If I were an objective investor, I would consider that buying $BONK with a market cap of 1.8 billion dollars would yield a higher investment return than buying $PUMP valued at 4 billion dollars or more in the current environment.

I also believe that the BonkFun ecosystem will attract more buying interest and quickly reprice itself under the current circumstances, moving towards a higher valuation.

In addition, this does not take into account the possibility that Pump.fun may further lose momentum and market share after the TGE is completed, being significantly surpassed by BonkFun.

BonkFun's continued dominance is a significant benefit to the meme coin market and the trench ecosystem.

One of the main reasons many industry insiders firmly support BonkFun and oppose Pumpfun is that Pump.fun is perceived as overly "predatory."

This "predatory" reputation mainly stems from their sale of a large amount of $SOL, and they continue to sell (amounting to hundreds of millions of dollars!).

The success of meme coins and the activity level on the chain are strongly correlated with the price trends of blockchain-native tokens, such as $SOL on the Solana chain.

If the price of $SOL continues to rise or remains relatively stable, it will have a positive impact on the trench ecosystem and on-chain activities, as more people will become interested in participating in the meme coin "casino."

This means that the prices of major meme coins will be more stable, newly launched low market cap meme coins will have higher bottom support, and this will stimulate the creation of more meme coins and narratives.

In this regard, BonkFun perfectly fits this trend:

15% of the transaction fees generated by BonkFun are staked in the BONKSol validator nodes in the form of $SOL. This not only reduces the selling pressure of $SOL but also contributes to the security of the Solana network by staking a large number of tokens as validator nodes.

58% of the fees generated by BonkFun are used to purchase $BONK. Those familiar with the meme coin market know that "dogs move in packs," meaning that the sustained rise of a strong meme coin will drive up other large-cap meme coins and spark market speculation, leading to the launch of more new meme coins and narratives.

Therefore, in this case, BonkFun reduced the sell pressure of $SOL, while pushing $BONK towards an incredible valuation through more aggressive buying and burning operations.

The more frequently this phenomenon occurs, the more active the trench ecology will become, and the stronger the market's speculative nature will be, thus forming a kind of flywheel effect or cycle.

You can call it "Bonk Wheel" (bonkwheel) or "Bonk Cycle" (bonkcycle), the name doesn't matter, but the core logic is evident!

I'm not sure how to express it better, but there is no doubt that BonkFun emerging as a clear, final, and decisive winner is the best development direction for the trench ecosystem and meme coin market—even if you do not hold any tokens in the BonkFun ecosystem.

In conclusion...

BonkFun's latest success has ensured one thing: the highly anticipated $PUMP TGE, which many believed could lead to a loss of funds in the meme coin market and the trench ecosystem, has turned into a potential positive catalyst. A significant amount of capital will flow into $BONK and the BonkFun ecosystem before and after the TGE, further boosting the prosperity of the trench ecosystem.