The PUMP token (PUMP) suffered a catastrophic 75% price collapse immediately following its July 12, 2025 Initial Coin Offering, plummeting from its all-time high of $0.006812 to approximately $0.0053 by July 18. The crash was triggered by massive sell-offs from whale wallets controlling over 60% of the presale allocation, with 59.6% of ICO participants (6,042 out of 10,145 wallets) selling or transferring tokens to exchanges within the first week.
Pump.fun raised $500-600 million in just 12 minutes during its ICO, achieving a fully diluted valuation of $4 billion. Despite the token debuting 40% above its $0.004 presale price, sustained selling pressure caused a 56% decline from its peak. In response, Pump.fun executed a $19.2 million buyback of 3.2 billion tokens on July 17, sparking a temporary 20% price rally that quickly faded.
The token faces fundamental challenges including zero utility features (no governance, staking, or fee-sharing), declining platform volumes (from $11.6 billion in January to $3.65 billion in June), and security concerns with over 2,400 fake PUMP tokens and 6,700 scam attempts detected. Roughly 60% of the total supply remains concentrated in approximately 340 wallets, raising manipulation fears.
Despite negative fundamentals, BitMEX data shows positive funding rates indicating market expectations of price recovery, while $3.7 million in smart money inflows and OKX's July 18 listing of PUMP/USDT pairs provide limited bullish signals. The token's current market cap stands at $2.06 billion amid ongoing volatility.