Solana News Today: PUMP Token Dips 20% After Pump.fun Delays Airdrop Triggers Sell-Offs

The PUMP token, native to the Pump.fun platform built on the Solana blockchain, experienced a significant price drop following the project’s announcement that it would not proceed with an immediate airdrop of its tokens. The price declined nearly 20% on July 24, 2025, as investors reacted to the unexpected decision. The move triggered widespread sell-offs, exacerbating volatility in the memecoin market and dragging down related assets such as DOGE and PEPE. Pump.fun’s team explicitly stated, “No airdrop [is] in [the] immediate future,” confirming the suspension of the previously anticipated distribution plan [1].

The price collapse extended beyond the single-day decline, with PUMP tokens falling 34% over the subsequent week to $0.00371, breaching a critical support level of $0.004035. Institutional investors, who had purchased tokens at $0.004 during public and private sales, accelerated liquidation efforts, offloading 29.5 billion tokens. This included a full 12.5 billion token allocation by one entity, according to on-chain data from Lookonchain [2]. The selling pressure pushed the token below both private and public sale benchmarks, deepening bearish sentiment. Analysts attributed the turmoil to speculative trading dynamics and structural liquidity challenges, with technical indicators showing failed attempts to reclaim the $0.004035 resistance level.

The airdrop delay coincided with broader legal pressures. A lawsuit alleges Pump.fun orchestrated a $3.18 billion “racketeering scheme,” further eroding confidence in the project [1]. While the platform has not disclosed specific reasons for the delay, the timing has intensified profit-taking among early investors who acquired tokens at the $0.004 entry price. Market participants remain divided: some analysts, like CryptoPatel, predict a 40% drop to $0.0024 if the bearish trend persists, while others, such as Captain Faibik, highlight a potential 50% rebound if buyers push the price above the $0.004035–$0.004061 range [2]. However, neither scenario has materialized, leaving the token’s trajectory uncertain.

The fallout highlights the fragility of meme-driven crypto projects, where liquidity events and governance decisions can rapidly reshape market dynamics. Historical patterns show similar ripple effects during memecoin volatility, with large token allocations and lack of vesting periods contributing to instability. Pump.fun’s absence of an airdrop has further tested Solana’s reputation as a hub for meme tokens, amplifying concerns about regulatory scrutiny and investor trust.

As the market digests these developments, PUMP’s performance will depend on whether buyers can stabilize the $0.004035 level or if further capitulation occurs. For now, the asset’s volatility underscores the risks inherent in speculative crypto markets, where governance announcements and institutional activity can drive sharp price swings.

Source:

[1] [Solana News Today: Pump.fun Lawsuit Claims $3.18B Racketeering Scheme] [https://www.ainvest.com/news/solana-news-today-pump-fun-lawsuit-claims-3-18b-racketeering-scheme-pump-dips-20-2507/]

[2] [Pump.fun (PUMP) Price Collapses 34% as Institutions Trigger 40% Drop] [https://www.ainvest.com/news/pump-fun-pump-price-collapses-34-institutions-trigger-40-drop-risk-key-support-2507/]