Pump.fun's PUMP Token Plummets 32% Below Launch Price as Early Investors Sell $160M in Massive Dump

A wave of selling pressure has gripped the Pump.fun (PUMP) memecoin, as early private-sale investors began offloading massive holdings onto exchanges, pushing the token below its initial coin offering (ICO) price just a week after launch. Blockchain analytics firm Lookonchain identified two wallets—dubbed “PUMP Top Fund 1” and “PUMP Top Fund 2”—that collectively transferred over $160 million worth of PUMP tokens to centralized exchanges in recent days, sparking market unease. The sell-off coincides with broader volatility in the memecoin sector, which has seen rapid gains followed by sharp corrections amid shifting investor sentiment.

The largest seller, Top Fund 1, initially secured 25 billion PUMP tokens for $100 million in USDC during the private round. The wallet has since deposited 17 billion tokens—valued at nearly $90 million—onto exchanges, leaving it with approximately $29.5 million in remaining holdings. Meanwhile, Top Fund 2, which acquired 12.5 billion tokens for $50 million, appears to have fully exited, transferring $71 million in tokens to exchanges. On-chain data from BitMEX reveals that nearly 60% of presale participants have sold or transferred their tokens, while only 37.4% continue to hold and a minority—about 3%—increased their stakes.

The sell-off follows Pump.fun’s highly publicized ICO on July 13, during which the project raised $500 million in just 12 minutes, driven by frenzied demand in the memecoin market. However, the rapid unlocking of tokens has destabilized the price, with the PUMP token plummeting to an all-time low of $0.003642 on July 22—46.5% below its post-launch peak of $0.006812 and 32% below its July 15 launch price. At current levels, the token trades 7% under its $0.004 ICO price, meaning even early investors face paper losses if they have not already exited.

Analysts attribute the sharp decline to structural weaknesses in the project’s tokenomics. The high supply of circulating tokens and immediate liquidity access for presale participants created downward pressure, particularly as large holders prioritized profit-taking. “The rapid unlocking and lack of gradual vesting schedules left the market vulnerable to large sell orders,” said a blockchain analyst, highlighting that the memecoin’s speculative nature has amplified its exposure to whale activity. Pump.fun’s attempt to diversify its roadmap by acquiring Solana-based analytics tool Kolscan has yet to mitigate the selling frenzy.

The broader memecoin market has also shown signs of cooling, with total sector capitalization peaking at $87 billion on July 21 before retreating to $82 billion by July 22. While Pump.fun’s decline underscores the sector’s volatility, the acquisition of Kolscan signals efforts to pivot toward utility-driven features such as gamified trading tools. However, the sell-off raises questions about the sustainability of projects relying heavily on speculative hype rather than long-term use cases.

As the market grapples with the Pump.fun sell-off, investors are increasingly scrutinizing memecoins for fundamentals and risk management. The event serves as a cautionary tale about the challenges of balancing rapid growth with structural safeguards in high-volatility environments. With the broader crypto landscape continuing to evolve, projects that prioritize transparency and balanced tokenomics may better withstand sudden shifts in market dynamics.