The reason why PumpFun PUMP trades at a lower revenue multiple than Hyperliquid HYPE is pretty straightforward: 1. Investors view perps (Hyperliquid) as having more durable revenue with larger future growth potential beyond the crypto sphere, than memecoin launchpads (PumpFun) which are solely retail gambling focused 2. PumpFun has notable team/investor token unlocks creating ongoing sell pressure and VC overhang for holders/buybacks to absorb, whereas Hyperliquid has unlocked/sold only a fraction of what they could have and has no VC overhang to deal with 3. PumpFun sold both tokens and equity to investors, creating a dual token vs equity conflict of interest misalignment problem with unclear boundaries of value accrual, whereas Hyperliquid has not sold equity and just has token 4. PumpFun has already reduced token value accrual from its buyback and burn mechanism from 100% to 50% of revenues, whereas Hyperliquid remains 99% of revenues, discretionary decision token holders had no say over 5. People generally don’t trust the PumpFun team nearly as much as they Hyperliquid, e.g., team promising an airdrop and not doing it, etc 6. Bad vibes associated with investing in memecoin platforms, akin to investing in payday lenders or private prisons, vs Hyperliquid being a more ‘clean’ bet on 24/7 markets that is more Wall Street digestible Could any of this change at any time? Yep, and that’s a fine thesis to have Will HYPE or PUMP perform better in short term? I have no idea, I hope both do well But the difference in historical and current valuation between the two assets is not inexplicable and it’s not just a trust issue(Zach Rynes | CLG)