Private sale investors associated with Pump.fun (PUMP) memecoin initiated a significant offload of tokens to centralized exchanges this week, prompting concerns about a sell-off as the token’s price dipped below its initial sale value.
Pump.fun Private Sale Investors Offload Tokens
According to blockchain analytics firm Lookonchain, two wallets designated as “PUMP Top Fund 1” and “PUMP Top Fund 2,” involved in the presale, transferred approximately $160 million worth of PUMP tokens to exchanges recently.
Specifically, the “PUMP Top Fund 1” wallet, which acquired 25 billion tokens for $100 million during the private sale (valued in USDC), deposited 17 billion tokens worth nearly $90 million into exchanges in the past week. This fund retains approximately $29.5 million worth of tokens.
The “PUMP Top Fund 2” wallet reportedly purchased 12.5 billion tokens for $50 million during the private sale and liquidated its entire allotment, worth over $71 million.
PUMP Token Faces Downward Pressure
Following its launch on July 15, the PUMP token saw initial gains but has experienced sharp declines, exacerbated by the high percentage of tokens released from presale participants.
CoinGecko data indicates PUMP’s price reached an all-time low of $0.003642, down 46.5% from its all-time high of $0.006812 and decreasing by 32% since inception. The token is currently trading down 7% from its initial coin offering price of $0.004.
In the last 24 hours alone, approximately 7.4% of the pre-mined PUMP supply changed hands on major centralized exchanges, according to analytics platform Santiment, Vietnam cryptocurrency news focusing on analysis The significant sell pressure suggests participants seeking to exit their positions.
Insights from BitMEX
BitMEX further analyzed PUMP’s sell-off dynamics, revealing that nearly 60% of presale participants subsequently sold or transferred tokens following the token launch. While 37.4% retained their holdings, only 3% increased their stake.
BitMEX analysts noted the token’s post-launch appreciation initially defied expectations, primarily due to the market’s underestimation of the immediate lock-up percentage impact. The firm highlighted the typical downward pressure large token floats exert on overbought derivatives markets.
Broader Context: The Memecoin Market Fluctuates
Simultaneously, the broader memecoin sector tumbled recently after peaking. CoinMarketCap data showed memecoin market cap surge 58% to $87 billion on Monday, fueled by new listings and capital inflows. However, the value subsequently retreated, hitting $81 billion the following day (Tuesday), and remains largely stagnant at around $82 billion.
Funding into memecoins isn’t necessarily a sign of confidence in individual projects, according to Anthony Anzalone, CEO of blockchain network Xion. “This capital is flowing into what currently offers the most rapid inflation rates globally, recognized by certain segments of retail investors,” he reportedly stated.
Related Topics
Note: Interested readers may explore Pump.fun’s expansion efforts, including its first acquisition focused on scanning bot activities and gamified trading integrations.
