Early PUMP Holders Double Down on Rebound as Token Falls 40%

Early PUMP holders are doubling down on a potential rebound despite the token’s more than 40% price decline since its launch. The native token of memecoin platform Pump.fun has faced intense selling pressure as presale participants offload positions, though a segment of large investors remains bullish. Blockchain analytics firm SpotOnChain reported that 31.6% of the 10,145 presale participants have already sold their tokens on decentralized exchanges, while 53% have transferred holdings to new wallets, including centralized exchanges. This trend suggests further sell-offs may materialize [1].

The largest presale buyer, who invested $100 million for 25 billion PUMP tokens, has deposited 17.1 billion tokens ($89.5 million) into centralized exchanges via FalconX. Despite this, the wallet still holds 7.99 billion tokens ($29.5 million) with an unrealized profit of $19 million. The second-largest buyer, “PUMP Top Fund 2,” liquidated its entire 12.5 billion token stash ($50 million) for a 43% gain ($21.4 million profit) [1].

However, not all large holders are cashing out. Around 13% of presale buyers retain their holdings, with 2.7% increasing positions. Two wallets, “8UHpWB” and “9Ucygi,” each invested $80 million for 20 billion tokens but now face 7.7% losses ($6.19 million unrealized loss per wallet). Another whale, “2WHL4X,” purchased 10 billion tokens ($40 million) and is down 7.7% ($3.1 million loss). Prominent crypto trader Machi Big Brother also holds a 5x leveraged long position of 3.55 billion tokens, incurring a $4.06 million unrealized loss [1].

PUMP’s price has plummeted from $0.006 to $0.003 in its first week, according to CoinMarketCap. Pump.fun’s fee accounts have repurchased 3.34 billion tokens ($19.81 million) to stabilize the price, but the market remains bearish. Despite the downturn, 75% of traders are taking bullish positions, signaling optimism for a recovery [1].

The rapid sell-off and mixed investor behavior highlight the volatile nature of memecoins. While some traders capitalize on short-term gains, others are betting on a rebound amid market turbulence. The platform’s buyback efforts have yet to reverse the slide, underscoring the challenges of sustaining momentum in the memecoin space.

Source: [1] [title: Early PUMP Holders Gamble on Rebound Amid Steep Losses of Over 40%] [url: https://cryptoslate.com/early-pump-holders-gamble-on-rebound-amid-steep-losses-of-over-40/]