Wallets linked to the Pump.fun platform have executed a coordinated, six-day liquidation of $10 million worth of its native $PUMP token, overwhelming the platform's own $1 million daily buyback program and driving the price down roughly 10%. The sales, which occurred between February 16 and 22, 2026, were conducted in a staggered pattern to minimize market impact and resulted in significant realized losses for the sellers, indicating a desperate exit ahead of a major token unlock and collapsing platform revenue.
The first sale on February 16 saw a wallet (77DsB) sell 543 million $PUMP for $1.2 million USDC, realizing a loss of $2.48 million from its acquisition cost seven months prior. Selling escalated, with the same wallet offloading 2.07 billion tokens for $4.55 million on February 19, followed by a two-day acceleration on February 20-21 where 3.376 billion tokens were sold for $7.23 million. A related wallet (GpCfm) transferred a final 1.21 billion PUMP, worth $2.57 million, to the Bitget exchange on February 22, bringing the total liquidation to approximately $10.5 million.
This insider selling occurred as the Pump.fun platform itself was burning around $1 million worth of $PUMP daily using platform revenue, a buyback program that has cumulatively removed $295-$301 million from circulation. However, the $10 million in sales from linked wallets created net selling pressure, breaking the $0.0020 support level and testing December 2025 lows near $0.001678.
The timing is critical, as a major token unlock is scheduled for July 12, 2026, which will release between 41 billion and 82.5 billion new $PUMP tokens into circulation, threatening severe price dilution. Compounding the pressure, Pump.fun's platform revenue has collapsed by 75% year-over-year, falling from daily peaks over $7 million in 2025 to between $1 million and $1.5 million in early 2026. January 2026 fees totaled only $31.8 million.
The situation highlights a fundamental inequity: users who have paid $935 million in lifetime fees to the platform received no airdrop, while linked wallets extracted millions. Furthermore, the platform faces a $500 million lawsuit filed in January 2025 alleging it facilitated pump-and-dump securities violations. The combination of the looming unlock, legal pressure, and declining revenue—which will reduce future buyback support—appears to have triggered the coordinated exit by wallets with potential inside knowledge of the platform's deteriorating prospects.
