PUMP, the native token of Solana (SOL)-based meme coin launchpad Pump.fun, has suffered a sharp reversal following its high-profile debut.
At press time, PUMP was trading at $0.00570, down 15% over the past 24 hours, making it the largest loser among the 100 largest cryptocurrencies by market capitalization. The token initially surged to a peak of $0.00968 but has since dropped 41%.
Launched on July 12 through a public token sale, the PUMP ICO raised $500 million in just 12 minutes, selling 150 billion tokens at $0.004 each.
While a broader market pullback, driven by Bitcoin (BTC) losing the $120,000 support level, has added to the sell-off, several PUMP-specific factors have accelerated the decline.
For instance, on-chain data reveals that roughly 340 wallets controlled more than 60% of the presale allocation. Many of these wallets began selling their tokens as they unlocked on July 14, increasing selling pressure on the market.
Volatility was further fueled by the decision from Binance and other major exchanges to list PUMP futures before spot markets, a move that appears to have dampened retail investor enthusiasm.
Whales turn bearish on PUMP
At the same time, large holders have shown a bearish stance. For instance, a whale reportedly opened a $8.5 million short position, while short funding rates on decentralized platforms spiked to an annualized rate of 1,100%, indicating extreme negative sentiment.
Investors also seem concerned about growing competition in the meme coin launchpad space. To this end, rival platform LetsBonk overtook Pump.fun in daily market share, grabbing 44.87% compared to Pump.fun’s 43.73%.
LetsBonk also leads in token graduation rates, with 1.04% of its 18,150 tokens achieving full trading status versus 0.93% for Pump.fun’s 12,261 launches.
Notably, Pump.fun, which gained popularity in 2024 as the go-to platform for launching Solana-based meme coins, had pitched the PUMP ICO as part of a larger vision to create a decentralized alternative to platforms like Facebook, TikTok, and Twitch.
With the token now faltering, skepticism is growing over whether the project can fulfill its ambitious roadmap.
Featured image via Shutterstock
