The PUMP token, launched by Solana-based memecoin creation platform Pump.fun, has plunged below its initial coin offering (ICO) price of $0.004, trading as low as $0.003642 – a 45% drop from its all-time high of $0.006878 reached shortly after its July 15 debut. This decline comes despite Pump.fun raising $600 million in just 12 minutes during its July 13 ICO.
Blockchain analytics by Lookonchain revealed two major private investors – labeled "PUMP Top Fund 1" and "PUMP Top Fund 2" – dumped approximately $160 million worth of tokens onto exchanges. Top Fund 1 sold 17 billion PUMP ($90 million) from its initial 25 billion token position, while Top Fund 2 liquidated its entire 12.5 billion token stake worth $71 million. This sell-off accelerated the price collapse, with BitMEX data showing nearly 60% of presale participants have already exited their positions.
Community frustration mounts over Pump.fun's failure to announce details for its promised PUMP token airdrop, despite co-founder Alon Cohen's cryptic social media teases. Simultaneously, rival launchpad LetsBonk – backed by Solana memecoin BONK – has dominated Solana token creation for 14 of the past 15 days. During this period, BONK's market cap surged 56.7% to $2.7 billion, more than double PUMP's current $1.3 billion valuation.
The broader memecoin sector shows cooling signs, with total market capitalization retreating $6 billion from its July 21 peak of $87 billion to $82 billion at reporting time.