Solana's Pump.fun Launchpad Deposits $11M in SOL, Trades Surge Amid Market Fears

The Solana network has once again drawn attention, this time due to the activities of the Pump.fun launchpad. On February 20th, Pump.fun deposited 65,122 SOL, valued at approximately $11 million, marking one of the major exchange activities in recent times. An X-post by Lookonchain from the same day suggests that 2.35 million SOL tokens have been exchanged across the platform to Kraken. Meanwhile, traders sold 264,373 SOL on this platform against $41.64 million USDC, resulting in accumulated earnings of 2.93 million SOL on the platform.

The trading volume of the platform Pump.fun fell to 52% on February 11th, a significant drop from the previous monthly high of $243 million on the same day. The following day, on February 19th, the volume further decreased to 122 million. This decline is not organic and is largely attributed to the scandal involving Argentine President Milei, who endorsed Solana beyond the limit, causing a temporary pump in the coin's price. However, the price subsequently fell at an even greater pace.

Following the scandal, the entire market is on edge, with fears of more manipulation cases to come. Insider advantages can seriously undermine the benefits that small retail traders can derive from the market. The CEO of CoinBase has likened the platform to a high-stakes casino. Meanwhile, a legion of traders alleges that FTX focuses on spectacle rather than sustainability for success. However, these allegations have not slowed down the occurrences, as Pump.fun's profits have not fallen, with the platform making $17 million per week. Nevertheless, this is not a stable position, and in the future, Pump.fun will have to improve its regulatory adherence.