Weekly Market Hotspot Review from June 3 to June 7: Pump.Fun issue coin and Analysis of New Korean Policies

This week, the overall cryptocurrency market is in a turbulent search for direction, mainly characterized by rebounds followed by declines. On the positive side, some tokens have experienced a broad increase due to liquidity promotion activities, and the phone talks between the leaders of two countries hint at peace negotiations. Additionally, a company has performed well under stablecoin policies. The negative aspects are mainly focused on steel tariffs and the debate between two well-known figures on Friday, while interest rate cuts have yet to arrive. This article will mainly focus on the issuance of coins by a certain platform and the cryptocurrency policies of South Korea and Singapore.

1. A certain platform issues coin

On June 4th, it was reported that a certain platform plans to conduct a $1 billion token sale with a valuation of $4 billion. The tokens will be sold to both the public and private investors, and they may be issued within the next two weeks. This news quickly sparked widespread discussion in the market.

1. Coin Issuance Opportunity

• Market Liquidity

Recently, two large-scale meme coin issuance events quickly drained the market liquidity at the time. According to data from an analysis company, half of the wallet addresses of these token holders had no history of purchasing related altcoins before. About 47% of buyers created their wallets on the same day they received these tokens. Under this influence, some well-known cryptocurrencies experienced varying degrees of decline.

The TVL of a certain public chain decreased by 10% during the issuance of the related token, while the TVL of another public chain only decreased by 2% during the same period. After reaching a peak of $35.5 billion in daily trading volume on January 17, the on-chain activity on the certain public chain sharply dropped to $3.1 billion on February 17. These events triggered panic in the market, leading many investors to withdraw from the cryptocurrency market, resulting in an overall decrease in liquidity.

• Platform Siege

Since last year's meme craze, a certain platform has basically held a monopoly in the relevant sector, but its business strategy and negative impact on the ecosystem have led other platforms to enter the competition, quickly eroding the leading position and market share of that platform.

For a long time, the platform has dominated the meme coin launchpad sector, with a market share that once exceeded 98%. However, according to data, at the beginning of May, the platform's daily token market share sharply declined to 56.2%. Other platforms accounted for 29% and 7% of the market share, respectively, marking the first time the platform faced real competition and highlighting the rise of new competitors.

• The meme craze fades and income plummets

The trading volume on the platform has dropped from $118.9 billion in January 2025 to just $25.1 billion, a decrease of 79%.

As the number of tokens created on the platform steadily declines, daily revenue has also plummeted. This shift indicates that interest in the issuance of speculative meme coins is rapidly fading. In May, the platform generated $46.6 million in revenue, a 42.85% decrease from $137 million in January.

The main advantage of the platform lies in its features of fast issuance and instant trading, but it lacks unique technology or economic models to protect its market position. Its revenue is highly dependent on the overall prosperity of the related ecosystem, and once liquidity or user activity declines, the platform's trading volume and income will be directly affected.

2. Valuation

The only reason the platform can be valued this high is its cash flow income, which shows that since its launch in March 2024, its revenue has approached 700 million US dollars.

We simply use the P/S (Price-to-Sales Ratio) as a measure of valuation, where a low P/S may indicate that the valuation is undervalued, and a high P/S reflects the market's optimistic expectations for future growth. The platform's P/S ratio is 9.1, based on a $4 billion valuation and approximately $440 million in annualized revenue.

General Range:

• Undervalued range: P/S < 5, which may indicate that the project is undervalued, with income relative to market value being relatively high, suitable for value investors' attention.
• Reasonable range: P/S 5-20, reflecting that the project has a stable income stream and the market has certain expectations for its growth, commonly seen in mature DeFi, Layer 1/2 protocols, etc.
• Overvaluation range: P/S > 20, which may indicate that the market has overly high expectations for the project's future growth or there is a speculative bubble, and risks should be heeded.

Overall, the current valuation of 4 billion carries a risk of being overly high, especially if revenues remain sluggish or competition further erodes market share. It is recommended to closely monitor its revenue recovery, the execution of token sales, and the overall performance of the related ecosystem.

2. Policy Regulation

1. 【6.3】The newly elected South Korean president promises to promote the development of crypto ETFs and the Korean won stablecoin

• Promote the legalization of spot crypto ETFs: Commit to supporting the legalization of Bitcoin and cryptocurrency exchange-traded funds (ETFs) to attract investors and facilitate the integration of the South Korean crypto market with the global market.
• Issue Korean Won Stablecoin: Plans to launch a stablecoin pegged to the Korean Won, aimed at curbing capital outflow, enhancing Korea's financial sovereignty, and providing local investors with a more stable investment tool for crypto assets. According to data from the Bank of Korea, in the first quarter of 2025 alone, the trading volume of stablecoins linked to the US dollar reached 57 trillion won, accounting for more than half of the total trading volume of stablecoins.
• Guiding institutional investment: The plan to guide national institutions such as the Korea National Pension Service to allocate cryptocurrency assets is seen as a bold policy. It is believed that the entry of institutional investors will significantly increase market size and may drive mainstream cryptocurrency prices like Bitcoin to new highs. The Korea National Pension Service is one of the largest pension funds in the world, with assets under management exceeding $800 billion; if a portion is allocated to cryptocurrency assets, it will have a profound impact on the market.
• Optimizing Regulation: South Korea's current cryptocurrency regulation is quite strict. The 2021 Specific Financial Transaction Information Act requires exchanges to conduct real-name authentication and operate with high compliance, which restricts market flexibility. The new policy plans to reduce the tax burden and transaction fees for cryptocurrency trading through policy adjustments, alleviate the investment burden on retail and institutional investors, attract more market participants, and may revise the high compliance requirements in the Specific Financial Transaction Information Act to enhance the operational efficiency of exchanges.

2. 【6.2】The Singapore financial regulatory authority will prohibit unlicensed overseas cryptocurrency services

All cryptocurrency service providers registered or operating in Singapore must cease providing services to overseas customers by June 30, 2025, if they have not obtained a DTSP license, and the regulatory authority has clearly stated that there will be no grace period.

• Strict DTSP licensing requirements:

All entities registered or established in Singapore, whether providing digital token services (including token issuance, trading, custody, transfer, node operation, consulting, and publishing research reports) domestically or overseas, must obtain a DTSP license issued by the regulatory authority. Alternatively, they must hold an existing license as stipulated under the Payment Services Act, Securities and Futures Act, or Financial Advisers Act. Companies that fail to comply with the regulations will face severe penalties, including fines of up to 250,000 SGD (approximately 200,000 USD) and possible imprisonment.

• Broad definition of "business premises":

"Place of business" includes any location used for conducting business (including mobile stalls), with a very broad scope. Employees of overseas companies working from home may be exempt, but the definition is vague, and regulatory authorities have the final interpretation.

• The definition of digital token services is broad:

Covering token issuance, trading, custody, consulting, and the publication of analysis or research reports related to digital tokens (in electronic, printed, and other forms), even KOLs publishing research content may require permission.

• No transition period and strict approval:

The new regulations will come into effect directly on June 30, 2025, with no transition period. Regulatory authorities stated that they will approve DTSP licenses with "extreme caution," and will only grant approval in "very limited circumstances," with compliance thresholds being extremely high.

Moreover, regulators allow overseas company employees to work from home in Singapore, but the definition of "employee" is vague, and whether project founders or shareholders fall under the category of employees is at the discretion of the regulators.

The third phase of the FSM bill (effective June 30, 2025) marks Singapore's shift from "crypto-friendly" to strict regulation through a rigorous DTSP regulatory framework, ending the era of regulatory arbitrage. Key points include extensive licensing requirements, vague definitions of "business premises," a wide range of covered services, no transition period, and strict AML/CFT measures. In the short term, small and medium projects may withdraw or merge with large institutions due to high compliance costs; in the long term, the new regulations may enhance market trust but could weaken Singapore's attractiveness as a Web3 innovation hub. In the coming month, Hong Kong, Dubai, Tokyo, Malaysia, and the United States may become preferred locations for project withdrawals.

3. 【6.4】A large financial institution plans to allow customers to use Bitcoin ETF as loan collateral

When BTC can be used as collateral for loans, its financial attributes are significantly enhanced, transforming from a "static asset" to "liquid capital," thereby improving its capital utilization rate, valuation premium, and overall market demand. Customers can obtain loans by collateralizing Bitcoin ETFs without having to sell their assets, providing investors with a new way to utilize funds and optimize investment strategies.

As a globally systemically important bank (G-SIB), this financial institution's acceptance of Bitcoin ETFs as collateral indicates that crypto assets are being recognized by mainstream financial institutions as legitimate investment tools, similar to gold or stocks. This grants Bitcoin ETFs a "hard asset" status, which may encourage other banks to follow suit, further enhancing the institutional acceptance of crypto assets.