The digital asset PUMP, which powers the memecoin launchpad
Pump.fun, is currently experiencing considerable downward pressure due to widespread selling.
Data gathered by SpotOnChain, a firm specializing in blockchain analysis, indicates that nearly a third (31.6%) of the 10,145 individuals who participated successfully in the
pre-sale have already divested their PUMP holdings on decentralized exchanges.
This selling trend is further emphasized by the fact that 53% of those who purchased PUMP during the pre-sale phase have transferred their tokens to new digital wallets, including those hosted by centralized exchanges. Analysts suggest this activity likely foreshadows additional sales in the near future.
SpotOnChain has observed that certain traders involved in these token movements have realized substantial profits from their investments.
According to their findings, the leading pre-sale investor, who initially spent $100 million to acquire 25 billion PUMP tokens, has already deposited 17.1 billion tokens, currently valued at $89.5 million, into centralized exchanges via FalconX, a digital asset platform.
Even with these sales, this investor still holds 7.99 billion tokens, which have a current market value of $29.5 million. This represents an unrealized profit of $19 million on their remaining holdings.
The second-largest pre-sale buyer, identified as “PUMP Top Fund 2,” invested $50 million to purchase 12.5 billion tokens. This entire amount has since been transferred to centralized exchanges, resulting in a gain of $71.4 million, representing a profit margin of 43%, or $21.4 million.
Some PUMP whales are still holding despite losses
While a significant portion of major holders appears to be cashing out their gains, a smaller group is demonstrating resilience by maintaining their positions.
According to SpotOnChain’s observations, approximately 13% of pre-sale participants have chosen to retain their PUMP tokens, and a mere 2.7% have actually increased their holdings.
The blockchain analytics provider singled out two wallets, “8UHpWB” and “9Ucygi,” noting that each invested $80 million to purchase 20 billion tokens. These wallets are currently experiencing a loss of around 7.7%, which translates to an unrealized loss of approximately $6.19 million for each wallet.
Another substantial holder, designated as “2WHL4X,” acquired 10 billion tokens for $40 million and has similarly seen a 7.7% decrease in value, resulting in a total loss of $3.1 million.
Furthermore, Machi Big Brother, a well-known figure in the cryptocurrency trading world, is also currently underwater, facing a potential loss of $4.06 million on a 5x leveraged long position involving 3.55 billion tokens.
PUMP falls by over 40%
This significant wave of selling has caused
PUMP’s market value to plummet by more than 40% within its first week of trading. CoinMarketCap reports a decline from $0.006 to $0.003.
In an attempt to stabilize the price, Pump.fun’s designated accounts have
repurchased 3.34 billion tokens for a total of $19.81 million. While such buyback programs typically aim to reduce the token supply and provide price support, this effort has not yet succeeded in reversing the downward trend.
Despite the current challenges, there is a slight indication of potential recovery. Data from Coinalyze
indicates that 75% of traders are now adopting bullish positions, anticipating a price rebound despite the ongoing market volatility.