Zhu Su: SOL price and demand were further pushed up by pump.fun’s TGE

Odaily Planet Daily News: Zhu Su, founder of Three Arrows Capital, posted on the X platform that "pump.fun's TGE has driven up the price of SOL", and the reasons are as follows: 1. pump.fun itself does not hold a large amount of SOL, so it will not cause price pressure by selling SOL; 2. It is a wrong thinking framework to think that pump.fun will sell SOL. Users usually buy SOL in US dollars, participate in pump.fun's transactions and pay SOL fees, and the platform then converts SOL back to US dollars. This model is just a regular consumer business process; 3. pump.fun's revenue generation in the Solana ecosystem has attracted more market attention, which may promote the revaluation of SOL as an investment-grade consumer protocol; 4. Solana ecosystem investors who participated in pump.fun's initial token issuance tend to reinvest funds in SOL after making profits.