- Pump.fun’s explosive US$500m ICO sold out in 12 minutes, but nearly 60% of buyers have already exited.
- Despite a sharp post-launch sell-off, funding rates have stayed positive, indicating surprising resilience in trader sentiment.
- As usage declines and competition rises, sustaining PUMP’s multi-billion-dollar valuation could become increasingly difficult.
Almost 60% of early investors in Pump.fun’s highly anticipated PUMP token have already sold or moved their tokens off-platform, according to analysis by BitMEX.
On-chain data shows that of the 10,145 wallets that took part in the US$500 million (AU$769.5 million) token sale, 6,042 (59.6%) have transferred their holdings to centralised exchanges or external wallets. Meanwhile, 3,791 wallets (37.4%) are still holding onto their allocations, and only 312 wallets (3%) have increased their PUMP exposure since launch.
The presale, completed in just 12 minutes, valued the token at US$0.004 (AU$0.0062) and gave the project a fully diluted valuation of US$4 billion (AU$6.16 billion). Following its listing, PUMP opened at around US$0.0056 (AU$0.0086) before briefly spiking to US$0.006812 (AU$0.0105). However, prices fell back to US$0.005468 (AU$0.0084) within 24 hours, a 19.1% drop from the peak.
Related: Pump.fun Acquires Kolscan to Gamify Solana Trading Ahead of US$4 Billion ICO
Strong Sentiment Despite Sell-Off
Despite this downturn, BitMEX noted that market sentiment has remained unexpectedly strong. Positive funding rates have suggested ongoing bullish interest in the token, defying the usual trend of sharp declines and aggressive shorting following large ICO unlocks.
Pump.fun, the Solana-based memecoin platform behind PUMP, has seen its user base grow, with around 100,000 daily active users. The platform reportedly generates US$540 million (AU$831 million) in annual profit, giving PUMP a price-to-earnings ratio of 9.6x.
Still, declining activity could undercut the token’s valuation. Monthly volumes have slid from US$11.6 billion (AU$17.9 billion) in January to US$3.65 billion (AU$5.62 billion) in June. With competitors emerging and trading volume waning, questions remain over whether PUMP can maintain its momentum.
Related: XRP, DOGE and SOL: Thumzup Board Greenlights Crypto Expansion Beyond Bitcoin
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