PUMP Whale Loses $6M as Binance Delay, Timing Error Trigger 50% Value Drop

A significant investor in PUMP, a meme token tied to the Pump.fun platform, lost $6 million after a critical timing error involving Binance. The investor, identified as “PUMP Top Fund 2,” transferred 2 billion tokens—valued at $12.79 million at $0.0064 per token—to the exchange eight days ago, assuming a spot listing would facilitate a sale. However, Binance had not yet listed PUMP, and the tokens were returned. By the time the investor moved the tokens to Bybit, the price had fallen to $0.003, slashing their value to $6.93 million [1]. The failed exit compounded losses as the token’s price continued to decline, with the investor now facing a nearly 50% reduction in holdings compared to the peak value.

The misstep exacerbated downward pressure on PUMP. Two additional early investor wallets, “Top Fund 1” and “Top Fund 2,” offloaded 1.25 billion tokens, generating $3.81 million at an average price of $0.00305—approximately half the price from a week prior. These exits erased $1.19 million in paper gains, as the wallets had initially acquired $150 million worth of tokens during the presale. Only one wallet remains with a $29.5 million balance, while the rest have liquidated holdings [1].

The token’s price collapse intensified after the Pump.fun founder denied rumors of an upcoming airdrop, triggering mass sell-offs among holders anticipating further value accrual. Over 24 hours, PUMP fell nearly 20%, trading at $0.003041, with a 7-day drop exceeding 44% from its all-time high of $0.0068. The slump coincided with a class-action lawsuit filed in New York, which alleges Pump.fun operated as a “digital casino,” misleading users while extracting billions in value. Named in the suit are the pseudonymous founder “Bernie,” Baton Corp. (the parent firm), and Solana-linked partners Jito Labs and the Solana Foundation [1].

The legal action highlights regulatory concerns in the meme-token space, where rapid price swings and opaque governance practices often lead to investor losses. Pump.fun’s model—combining social media hype with algorithmic token mechanics—has drawn scrutiny for its reliance on speculative demand. The lawsuit’s outcome could set a precedent for how regulators treat projects that blend gamified financial incentives with decentralized finance (DeFi) structures.

Source: [1] [Missed Exit Costs PUMP Whale Millions: What Went Wrong?](https://coinmarketcap.com/community/articles/6882122ccb8127406692d583/)