Major Pump.Fun Tokens Drop Sharply Amid $1B Capital Raise Rumors

Pump.fun’s $1B Raise Shakes Solana Memecoins as Traders Brace for Dilution

Solana’s meme-fueled token ecosystem took a hit Tuesday after reports surfaced that Pump.fun, the viral token-launch platform behind some of the blockchain’s biggest joke coins, is seeking to raise $1 billion at a $4 billion fully diluted valuation.

Once riding high on meme magic, top tokens like FARTCOIN and PNUT sank fast. The decline followed a report from Blockworks revealing that Pump.fun is courting investors for a billion-dollar raise—though details about the deal’s structure remain scarce. Sources say the raise could close in a matter of weeks.

The market reaction was swift: Fartcoin (FARTCOIN) dropped 7%, Peanut the Squirrel (PNUT), Moo Deng (MOODENG), and Goatseus Maximus (GOAT) fell up to 6%. Alchemist AI (ALCH), which was up 25% on Monday, flipped negative. In total, around $150 million in market value evaporated across Pump-related tokens.

While the fundraising could inject new resources into the ecosystem, traders worry about a wave of dilution. A new Pump token could increase supply, and with little clarity on how funds will be used, the “farm-and-dump” fears are resurfacing.

Some of crypto’s most trusted voices chimed in with skepticism.

“Why does Pump need to raise $1B when it hasn’t even spent the $675M it already made?” asked @0xngmi, founder of DeFiLlama.

“From zero to nearly a billion in revenue in one year—and now they want another billion? Unreal,” commented Helius founder Mert Mumtaz.

Just weeks ago, Pump.fun attempted to curb dumping by rewarding developers with 50% of PumpSwap fees, effectively giving them a share of every trade. Founder Alon Cohen framed the update as a way to promote sustainable tokenomics: earn fees, not exits.

Now, with a $1 billion fundraise looming, the project may need to convince its community that growth won’t come at the cost of token holders.