Blockworks Research: PUMP Token Undervalued vs Revenue, Potential for 2.3x-4.4x Surge

Blockworks Research analyst Shaunda Devens has stated that the native token PUMP of the Solana-based meme coin issuance platform Pump.fun is undervalued compared to its revenue, suggesting it could rise to $0.0108-$0.0205 per token, representing 2.3x-4.4x the current price.

Devens explained that Pump.fun's annualized revenue exceeds $677 million while its market cap-to-revenue (P/S) ratio stands at only 2.8x. She also noted that the platform's buyback program, which allocates 50% of revenue, equates to approximately 17.6% of the annual supply based on current prices.

However, Devens highlighted insider holdings and transparency issues as risk factors, with a bearish scenario potentially leading to a 59%-76% price decline.