PUMP Token Faces Selling Pressure After Rapid Price Drop
PUMP, the native token of memecoin launch platform Pump.fun, is experiencing significant selling pressure as its price continues to plummet. According to data from blockchain analytics firm SpotOnChain, a large percentage of presale participants have been offloading their PUMP tokens on decentralized exchanges.
Out of the 10,145 successful presale participants, 31.6% have sold their tokens on decentralized exchanges. Additionally, 53% of presale buyers have transferred their tokens to new wallets, including centralized exchanges, indicating a potential increase in sell-offs in the near future.
SpotOnChain also noted that some traders who have been involved in these asset movements have seen substantial profits. The top presale buyer, who invested $100 million to purchase 25 billion PUMP tokens, has already deposited 17.1 billion tokens, valued at $89.5 million, into centralized exchanges via FalconX. Despite selling a significant portion of their holdings, the investor still holds 7.99 billion tokens worth $29.5 million, resulting in an unrealized profit of $19 million.
Another large buyer, known as “PUMP Top Fund 2,” purchased 12.5 billion tokens for $50 million and has moved all of their tokens to centralized exchanges. This move generated $71.4 million, translating to a 43% gain and a profit of $21.4 million.
While many large holders are capitalizing on profits, a smaller percentage of presale buyers are holding onto their tokens. SpotOnChain reported that around 13% of presale buyers still retain their holdings, with only 2.7% increasing their positions.
Despite the losses incurred by some whales, there are still optimistic traders in the market. Despite PUMP’s price dropping by over 40% in its first trading week, trading data from CoinMarketCap shows that 75% of traders are now taking bullish positions, anticipating a potential price rebound.
In response to the downturn, Pump.fun’s fee accounts have repurchased 3.34 billion tokens for $19.81 million. The buyback initiative aims to reduce supply and stabilize prices, although the impact on price recovery remains to be seen.
Overall, the PUMP token has experienced significant volatility in its early trading days, with both profit-taking and bullish sentiment shaping its price trajectory. As the market continues to evolve, traders and investors will closely monitor the token’s performance and potential for recovery.