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

Odaily 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” for the following reasons:
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 frame of mind to think that pump.fun will sell SOL. Users usually buy SOL with US dollars, participate in transactions on Pump.fun 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 drive the revaluation of SOL as an investment-grade consumer protocol;
4. Solana ecosystem investors who participated in the pump.fun initial token offering tend to reinvest their funds into SOL after making a profit.