PUMP Token Plummets 41% After Launch, Largest Loser Among Top 100 Cryptos

PUMP, the native token of the Solana-based meme coin launchpad Pump.fun, has experienced a significant downturn following its highly anticipated launch. The token, which initially surged to a peak of $0.00968, has since dropped by 41%, trading at $0.00570 at the time of reporting. This decline makes PUMP the largest loser among the 100 largest cryptocurrencies by market capitalization over the past 24 hours, with a 15% drop in value.

Launched on July 12 through a public token sale, the PUMP ICO raised $500 million in just 12 minutes, selling 150 billion tokens at $0.004 each. The rapid sell-off can be attributed to several factors, including a broader market pullback driven by Bitcoin losing the $120,000 support level. Additionally, on-chain data reveals that roughly 340 wallets controlled more than 60% of the presale allocation. Many of these wallets began selling their tokens as they unlocked on July 14, increasing selling pressure on the market.

Volatility was further exacerbated by the decision from major exchanges to list PUMP futures before spot markets, a move that appears to have dampened retail investor enthusiasm. Large holders have also shown a bearish stance, with a whale reportedly opening an $8.5 million short position. Short funding rates on decentralized platforms spiked to an annualized rate of 1,100%, indicating extreme negative sentiment.

Investors are also concerned about growing competition in the meme coin launchpad space. Rival platform LetsBonk overtook Pump.fun in daily market share, grabbing 44.87% compared to Pump.fun’s 43.73%. LetsBonk also leads in token graduation rates, with 1.04% of its 18,150 tokens achieving full trading status versus 0.93% for Pump.fun’s 12,261 launches.

Pump.fun had gained popularity in 2024 as the go-to platform for launching Solana-based meme coins. The platform pitched the PUMP ICO as part of a larger vision to create a decentralized alternative to platforms like Facebook, TikTok, and Twitch. However, with the token now faltering, skepticism is growing over whether the project can fulfill its ambitious roadmap.

Despite the setback, the launch of Pump.fun and its subsequent crash serve as a reminder of the risks and rewards associated with investing in the crypto market. While the potential for significant returns is high, so too is the risk of loss. As such, investors must approach the market with caution and conduct thorough research before committing to any new project.