The PUMP token from Pump.fun is facing significant price pressure as early investors begin to offload large volumes of tokens onto exchanges.
Just one week after its much-hyped launch on July 15, the token has fallen 32% from its initial coin offering (ICO) price, sparking concern over short-term investor sentiment and market liquidity.
Two wallets, identified by Solscan as “PUMP Top Fund 1” and “PUMP Top Fund 2,” collectively sent over $160 million worth of tokens to centralised exchanges, according to blockchain analytics firm Lookonchain.
This has led to a steep decline in token value and raised questions about the token’s unlock mechanism and post-launch sustainability.
$500M ICO and aggressive sell-off fuel rapid decline
Pump.fun completed its ICO on July 13, raising nearly $500 million in just 12 minutes.
Top Fund 1 acquired 25 billion PUMP tokens for $100 million in USDC and has since deposited 17 billion of those tokens, worth nearly $90 million, to exchanges.
Despite the sell-off, the wallet still holds tokens valued at $29.5 million.
Meanwhile, Top Fund 2 bought 12.5 billion tokens for $50 million and has already offloaded its entire stash to the market, generating over $71 million.
The aggressive dumping by these early backers has coincided with a 46.5% fall in the token’s value from its all-time high of $0.006812 to a low of $0.003642 on July 22.
BitMEX data shows 60% of presale investors sold
Data from BitMEX published on July 17 showed that nearly 60% of PUMP presale participants sold or transferred their holdings to exchanges or other wallets within two days of the launch.
Around 37.4% continued to hold their tokens, while 3% increased their positions.
It’s been almost 1 week since the @pumpdotfun ICO💊
From 10,145 participants who contributed $448.5M:
➡️59.6% sold or transferred
➡️37.4% continue to HODL
➡️3% increased their holdings
Our quant reveals traders are still BULLISH on $PUMP. Read on👇
x.com/BitMEX/status/…
BitMEX analysts noted that PUMP’s immediate appreciation after launch went against expectations, especially given the high unlock percentage at inception.
Tokens with large circulating supplies early in their lifecycle often face sharp sell pressure in derivatives and spot markets, and PUMP appears to be following that trend.
Memecoin market hits $87B, then retreats
The Pump.fun token’s trajectory coincides with a broader trend in the memecoin sector.
According to CoinMarketCap, total market capitalisation for memecoins peaked at $87 billion on July 21, up 58% from $55 billion at the end of June.
However, the rally proved short-lived as the market dipped to $82 billion just one day later, on July 22.
Pump.fun’s market capitalisation currently stands at $1.32 billion, with the token trading at $0.003751, down 11.89% in the past 24 hours.
Source: CoinMarketCap
Analysts have suggested that the surge in memecoins may reflect a broader lack of appealing investment options elsewhere in the crypto space.
Despite this, PUMP’s performance highlights the risks of tokens with high float percentages and a lack of sustained buyer support after initial excitement fades.
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