PUMP Crashes 14% Below ICO Price After Founder Rules Out Airdrop

PUMP, the native token of the Pump.Fun platform, plummeted over 14% in 24 hours following founder Alon Cohen’s confirmation that an anticipated airdrop will not occur in the near future. The token, which was priced at $0.004 during its July 2025 initial coin offering (ICO), now trades at $0.0031—a 25% decline from its all-time high of $0.0068 recorded on July 16. Cohen, addressing community concerns during a live session with Michael “ThreadGuy” Jerome, emphasized that the airdrop, intended to reward early platform users, would be delayed to ensure a “meaningful” and well-executed distribution. “We’re focusing on long-term development over short-term incentives,” he stated, signaling a strategic shift toward ecosystem growth [1].

The announcement coincided with intensified selling pressure. Two wallets linked to private sale investors offloaded over 1.2 billion PUMP tokens at $0.003 within two hours, resulting in a $1.19 million loss. Meanwhile, influential investor Jeffrey Huang, known as Machi Big Brother, continued to double down on his long position despite losses exceeding $5.8 million, underscoring mixed sentiment among key stakeholders. CoinMarketCap data revealed a 40% drop in the token’s price over seven days, while the platform’s 24-hour trading volume stood at $10.2 million, reflecting waning user engagement [1].

Cohen’s comments highlight Pump.Fun’s pivot from speculative airdrop-driven hype to core utility. The platform’s 12.5% ICO allocation of its 1 trillion token supply has left investors grappling with declining confidence, particularly as liquidity events remain absent. Analysts note that the token’s future performance will increasingly depend on the platform’s ability to demonstrate tangible value rather than rely on community-driven momentum. The founder’s refusal to provide a specific airdrop timeline has compounded uncertainty, with market participants now focusing on Pump.Fun’s capacity to attract sustained user activity and expand its memecoin launchpad offerings [1].

The market’s reaction underscores the vulnerability of memecoins lacking concrete utility or revenue streams. PUMP’s 14% drop in market capitalization and its 50% pullback from its ICO peak suggest a broader reassessment of its value proposition. While Cohen’s team has reiterated their commitment to eventual airdrop details, the absence of immediate incentives has shifted investor expectations. Retail holders, initially drawn by airdrop potential, now face a volatile landscape where sentiment hinges on the platform’s long-term development milestones. As Pump.Fun navigates this transition, its success will likely depend on balancing speculative appeal with sustainable ecosystem growth [1].

Source: [1] [title: PUMP Crashes 14% Below ICO Price After Founder Rules Out Airdrop] [url: https://cryptonews.com/news/pump-crashes-14-below-ico-price-after-founder-rules-out-airdrop/]