Why US Investors Missed Pump.fun’s $500 Million Token Launch

Despite so many pro-crypto moves under Trump so far, US-based investors completely missed out on the Pump.fun ICO excitement. The PUMP token sale was arguably the biggest crypto launch of this year. 

But that’s probably about to change as the US continues to push for balanced crypto regulation in 2025. 

Americans Missed Out on Yet Another New Token Launch

The Solana-based meme coin launchpad platform Pump.fun was able to raise a brain-boggling $500 million in under 12 minutes on July 11. 

Centralized Exchanges like Kraken, Bybit, and many others facilitated part of the crypto fundraise. Investors from these venues contributed over $50 million. 

Yet the terms of the Pump.fun fundraising event excluded potential US and UK investors from the outset.

“It’s not that uncommon to see an ICO restrict US buyers,” said Tony Drummond, founder of Tokenomics.net and an advisor to crypto accelerator Outlier Ventures. 

It’s true that a number of ICOs have specifically blocked United States investors via geolocation over the years as a result of securities laws. This is more frustrating because many of the participating exchanges, like Kraken, are primarily US-based. 

Also, the fact that Pump.fun’s token is expected to have a share, reportedly 25%, of the platform’s revenue in the future likely makes it look more like a security. 

Securities laws could be the reason for the UK restriction as well. 

“The UK is a new one for me as usually they’ll restrict the EU due to their MiCA regulations,” Drummond added.

Meme Coin Launchpad Market Is Heating Up

Despite all the ICO hoopla, it’s important to remember that Pump.fun also has a meme coin launchpad rival in the form of Bonk.fun. 

Number of tokens created per day on Pump.fun since launch. Source: Dune Analytics

Having a war chest to compete with other meme coin platforms could be key for Pump’s prospects in the coming years. 

Remember the NFT Boom. It wasn’t that long ago that many considered OpenSea the gorilla in that space until upstart rivals like Blur came along.

Number of tokens created per day on Bonk.fun since launch. Source: Dune Analytics

In terms of tokens created per day, Pump and Bonk.fun each have around 20,000 cryptocurrencies launched daily.

“Pump.fun is hard to analyze logically as it’s kind of a cancerous tumor,” said Drummond. 

So, will the PUMP token funds allow Pump to eventually take back the meme coin lead on Solana? 

“I think they’ll find a way to co-exist,” said Adam Tehc, a trader who has created a Pump.fun Dune Analytics dashboard displaying stats about the platform. 

Tehc finds it ironic that the US president has his own meme coin, yet American investors were shut out of the literal Pump fun.

“I think Solana meme coin founder Donald Trump should start taking some regulatory action,” Tehc added. 

US Crypto Regulation Summer

It’s very possible Tehc may be getting his regulation wish soon. The Crypto Week is in full swing in Washington, and the House just passed the CLARITY and GENIUS Act.

After the GENIUS bill is signed by Trump, crypto market structure regulation, the CLARITY Act, could be the next step. 

Some of the major aspects of the crypto market structure will pave the way for distinctions between commodities and securities, a regulatory authority between the SEC and the CFTC, and a better framework for exchanges and trading platforms to work within. 

Of course, Congress has a ways to go to get the “Clarity” bill in shape. 

But if the Trump administration continues its rapid pace of governing, there may be a day very soon when blockchain companies like Pump.fun will have clear regulatory pathways to raising crypto capital in the US.