Key Takeaways
- Over $160 million in $PUMP tokens sent to exchanges by private investors.
- $PUMP Token falls below ICO price amid massive selling pressure.
- Memecoin market shows signs of retreat after peaking at $87 billion.
Pump.fun’s flagship token, $PUMP, is under pressure as early backers rapidly liquidate their holdings. The selloff occurs as the token falls below its ICO price, raising broader concerns about the sustainability of recent memecoin hype and speculative investment trends.
Whales Lead the Selloff
Blockchain analytics firm Lookonchain flagged two wallets—dubbed “$PUMP Top Fund 1” and “$PUMP Top Fund 2”—as key sellers. Together, they transferred $160 million worth of $PUMP tokens to centralized exchanges.
Top Fund 1 acquired 25 billion tokens for $100 million in USDC, recently moving 17 billion of those worth around $90 million. Meanwhile, Top Fund 2, which had bought 12.5 billion tokens for $50 million, has sold its entire stash for more than $71 million.
CoinGecko shows the token hit a low of $0.003642—down 46.5% from its post-ICO peak and 32% from its initial value.
Sector-Wide Signs of Exhaustion
The memecoin boom peaked at $87 billion on July 21, a sharp jump from $55 billion just weeks earlier. But since then, the sector has cooled, slipping to $81 billion before rebounding slightly to $82 billion.
BitMEX data reveals that nearly 60% of $PUMP ICO participants have already sold or transferred their tokens, while only 3% increased their exposure. The high unlock rate of the token likely contributed to the early flood of supply.
Conclusion
The $PUMP token’s dramatic fall below its ICO value highlights the risks tied to speculative investing in memecoins. Early whale exits, high token unlocks, and market fatigue have triggered a price slide. As the broader memecoin market starts to plateau, the Pump.fun saga serves as a lesson in managing token economics and investor expectations.
Frequently Asked Questions
Why is PUMP’s price dropping?
Heavy selling from presale investors and a lack of lockup periods flooded the market.
Who triggered the selloff?
Two wallets labeled as “Top Fund 1” and “Top Fund 2” offloaded over $160 million in tokens.
Is the memecoin rally over?
The market has cooled after a major surge, showing signs of short-term consolidation.
