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

Author: Unipcs (aka 'Bonk Guy')

Translation: Deep Tide TechFlow

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

Since this is one of the most anticipated TGE events recently, and many people are starting to compare it with BonkFun—after all, BonkFun has gained a lot of attention since surpassing Pump.fun—I feel it is necessary to organize my thoughts.

Here is what I currently understand about the $PUMP token:

• It is claimed that they have raised $1 billion, with a valuation of $4 billion.

• The predicted market and over-the-counter valuations for the token after the TGE are expected to reach $7 billion to $8 billion, with some trading institutions even believing its valuation could be as high as $10 billion.

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

I previously commented on X, believing that a valuation of $4 billion for the $PUMP token is reasonable.

I also stated that it could easily rank among the top 10 to 15 crypto projects.

These comments were made based on a comparison of Pump.fun's history and expected revenue with the valuations of other crypto projects.

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

That said, here are my updated views:

1. I do not believe that Pump.fun has completely lost its position, but I do think BonkFun is likely to maintain its industry leadership in the foreseeable future.

Here are my reasons:

• BonkFun's positioning of "supporting creators/supporting users/supporting the Solana ecosystem" is a huge advantage.

• The strong 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, had significant momentum, especially with the 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 it being able to sustain its previous market share after the TGE.

• Although all launch platforms are troubled by bot issues, I believe a significant portion of Pump.fun's activity comes from active high-level users and bots who are trading to profit while anticipating airdrops. After all, Pump.fun was one of the most profitable protocols 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 will have ended.

• The above factors make BonkFun's growth even more impressive! Its growth is entirely organic and closely tied to the Solana ecosystem, driving development without any promises or expectations of tokens or incentives—because the $BONK token existed before BonkFun was launched and has always clearly 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 global adoption, especially its cultural connections with significant communities. For example, the widespread acceptance of BonkFun in the Chinese market has made it the top launch platform in the region, attracting a large number of users to Solana and launching a record number of tokens, far exceeding other blockchains. This is one of BonkFun's core advantages and a field of continued growth—an area that many may still not fully recognize.

Additionally, this does not take into account some strategic moves that BonkFun may take in the future.

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

I acknowledge that Pump.fun may make some interesting announcements before its TGE in an attempt to regain market share… but even so, I believe its impact will be short-lived.

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

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

If the TGE were to happen 1-2 weeks ago, this claim might have some merit, but I believe that will not be the case in the future.

BonkFun's strong surpassing of Pump.fun at such a close point to the TGE will dampen market enthusiasm for $PUMP and prevent liquidity from meme coins and trench funds from being drained. Given the recent market context, it is clearly unreasonable to fully sell off high-confidence assets to switch to $PUMP.

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

While the tokenomics of $PUMP remain very opaque, we do know the following:

• 50% of BonkFun's transaction fees are used to buy and burn $BONK tokens.

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

I cannot predict what the final tokenomics of $PUMP will look like, but I find it hard 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 trading is within the $BONK and BonkFun ecosystem:

If $PUMP raises funds at a $4 billion valuation and is assessed by third parties to be worth as much as $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 ecosystem products that are all adding buying and burning pressure to $BONK.

At its current market cap of $1.8 billion, $BONK is clearly severely undervalued.

If I were an objective investor, I would think that buying $BONK at a market cap of $1.8 billion would yield a higher investment return than buying $PUMP at a valuation of $4 billion or higher.

I also believe the BonkFun ecosystem will attract more buying pressure and quickly reprice in the current situation, moving towards a higher valuation.

Additionally, this does not take into account that Pump.fun may further lose momentum and market share after completing its TGE, being significantly surpassed by BonkFun.

4. BonkFun's continued dominance is a huge positive for the meme coin market and the trench ecosystem.

One of the main reasons many industry insiders firmly support BonkFun while opposing Pump.fun is that Pump.fun is considered too "predatory."

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

The success of meme coins and the activity on-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, this will have a positive impact on the trench ecosystem and on-chain activity, as more people will be 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 it will stimulate the creation of more meme coins and narratives.

In this regard, BonkFun perfectly fits this trend:

• 15% of the fees generated by BonkFun are staked in $SOL at BONKSol validator nodes. This not only reduces the selling pressure on $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 other large-cap meme coins and stimulate market speculation, leading to the launch of more new meme coins and narratives.

Therefore, in this case, BonkFun reduces the selling pressure on $SOL while pushing $BONK towards incredible valuations through more aggressive buying and burning operations.

The more frequently this phenomenon occurs, the more active the trench ecosystem will be, and the stronger the market's speculative nature will become, creating a flywheel effect or cycle.

You can call it the "Bonk Wheel" or "Bonk Cycle," 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 the clear, ultimate, and decisive winner is the best development direction for the trench ecosystem and the meme coin market—even if you do not hold any tokens in the BonkFun ecosystem.

In conclusion…

BonkFun's recent success ensures 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 transformed into a potential positive catalyst**. A large amount of funds will flow into the $BONK and BonkFun ecosystem before and after the TGE, further promoting the prosperity of the trench ecosystem.

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