A major PUMP token investor identified as "PUMP Top Fund 2" lost nearly $6 million after attempting to deposit 2 billion PUMP tokens (worth $12.79 million at $0.0064 per token) into Binance eight days ago. Since Binance had not enabled spot trading for PUMP at the time, the exchange returned the tokens 23 hours later. During this period, PUMP's price crashed 46% to $0.0035. The investor then transferred the assets to Bybit, but the tokens' value had already plummeted to $6.93 million—erasing $6 million in potential profits.
Simultaneously, two other early investors sold 1.25 billion PUMP for $3.81 million at an average price of $0.00305, taking a $1.19 million loss. These exits intensified selling pressure as PUMP fell 20% in 24 hours and 44% over seven days, trading at $0.003041 with $933 million volume. The decline accelerated after Pump.fun's founder announced no imminent airdrop, disappointing holders.
Compounding the crisis, a class-action lawsuit filed in New York accuses Pump.fun—alongside pseudonymous founder "Bernie," parent company Baton Corp., and Solana-linked partners Jito Labs and Solana Foundation—of operating a "digital casino" that allegedly misled users and extracted billions in value. Most of the $150 million in presale tokens have now been moved to exchanges, with only one wallet holding $29.5 million.