Pump.fun Sell-Off Sparks Token Drop Below ICO Price

• Early investors sold over $160 million in PUMP tokens, pushing the price below its ICO value.

• The token dropped 46.5% from its peak and is now 7% lower than its initial sale price.

• Nearly 60% of presale participants have sold or moved their tokens to exchanges.

Two early investors in the Pump.fun (PUMP) memecoin has triggered sell-off fears after transferring over $160 million worth of tokens to exchanges. The transactions were flagged by blockchain analytics platform Lookonchain, which tracked wallets labeled “PUMP Top Fund 1” and “PUMP Top Fund 2” on Solscan.

The first wallet acquired 25 billion tokens for $100 million in USDC during the private sale. Over the past week, this wallet moved 17 billion PUMP tokens, valued at nearly $90 million, to centralized exchanges. It still holds approximately $29.5 million worth of tokens.

The second wallet purchased 12.5 billion tokens for $50 million and has sold its entire position, realizing over $71 million in value.

Token Falls Below ICO Price as Sell-Off Escalates

Pump.fun conducted its initial coin offering (ICO) on July 13, raising nearly $500 million in 12 minutes. Despite an early price surge, the token has dropped significantly. According to CoinGecko, PUMP hit an all-time low of $0.003642 on Friday, down 46.5% from its peak of $0.006812 and 32% below its launch-day price.

PUMP’s current price is 7% lower than its ICO price of $0.004, placing many presale investors at an unrealized loss.

Data from BitMEX highlights that nearly 60% of ICO participants have sold or transferred their tokens. As of last week, 37.4% of token holders remained, while only 3% increased their holdings.

BitMEX analysts noted that PUMP’s initial price performance defied expectations given its high unlock percentage. Tokens with large circulating supplies at launch typically experience strong downward pressure, particularly in derivatives markets.

Memecoin Market Cools After $87B Peak

The broader memecoin sector also shows signs of a cooldown. CoinMarketCap data reveals that the total market capitalization of memecoins hit $87 billion on July 21, marking a 58% increase since June 30. However, the market cap quickly declined to $81 billion the following day and currently sits at $82 billion.

Anthony Anzalone, CEO of Xion, noted earlier that the memecoin surge reflects limited investment alternatives in the current market.

Despite the volatility, Pump.fun has continued building. The project recently acquired Kolscan in its first acquisition, signaling its intention to expand into gamified trading experiences.