Binance Investor Loses $6M as Unlisted PUMP Token Drops 60% After Deposit Error

A Binance user incurred a $6 million loss following a deposit error involving the unlisted PUMP token, as the asset’s price plummeted by 60% over eight days. The investor, identified as “PUMP Top Fund 2,” deposited 2 billion PUMP tokens into Binance on July 16, 2025, when the price was $0.0064, valuing the deposit at $12.79 million. However, Binance did not list PUMP for spot trading, leaving the tokens stranded until the exchange returned them eight days later. During this period, PUMP’s price fell to $0.003005, erasing roughly half its value. The investor transferred the returned tokens to Bybit but retained the $6 million loss, underscoring the risks of holding unlisted assets during market downturns [1].

The incident coincided with broader crypto market instability. The altcoin market cap shed approximately $1 trillion in 24 hours, with major tokens like Ethereum (ETH), XRP, and Solana (SOL) retesting critical support levels. PUMP’s collapse reflects the fragility of low-liquidity tokens, which lack regulatory oversight and institutional safeguards. Unlike listed assets, unlisted tokens often experience sudden price swings due to limited trading activity and concentrated ownership. Binance’s handling of the deposit error remains under scrutiny, though the exchange has not commented on the matter.

The event highlights the speculative nature of niche crypto assets. PUMP’s brief rally to $0.006902 in early July—driven by social media hype—was followed by a sharp reversal as selling pressure intensified. Analysts suggest the drop may reflect either a coordinated sell-off or a liquidity crunch triggered by the deposit delay. Such scenarios are common in unlisted tokens, where price discovery is weak, and exit opportunities are scarce during market stress. The investor’s decision to allocate capital to PUMP, despite its absence from major exchanges, underscores the ongoing appeal of high-risk, high-reward strategies in crypto.

Regulatory bodies have repeatedly warned about the dangers of speculative investments in unlisted assets, particularly those with minimal transparency. PUMP’s trajectory reinforces these concerns, illustrating how unlisted projects can exacerbate market volatility. While the altcoin market has historically experienced cyclical corrections, the speed and magnitude of PUMP’s decline highlight the amplified risks in illiquid markets. Investors are increasingly urged to prioritize assets with robust trading infrastructure and regulatory alignment, even as the broader crypto ecosystem grapples with structural uncertainties.

Source: [1] [How One Investor Lost $6 Million Crypto Deposit Error](https://coinedition.com/how-one-investor-lost-6-million-crypto-deposit-error/)