Private Sale Investors Offload $160M in Pump.fun Tokens

Investors Raise Concerns

Private sale investors of the Pump.fun (PUMP) memecoin have begun selling off billions of tokens to exchanges, sparking worries of a potential sell-off as the token's value drops below its initial sale price. Blockchain analytics firm Lookonchain reported that two early backers of the memecoin, identified as “PUMP Top Fund 1” and “PUMP Top Fund 2” on Solscan, collectively transferred over $160 million in PUMP tokens to centralized exchanges.

Token Unloading

During the private sale, the Top Fund 1 wallet purchased 25 billion tokens for $100 million in USDC. Within the last week, this wallet has deposited 17 billion tokens valued at nearly $90 million to exchanges, although it still retains tokens worth $29.5 million. On the other hand, the second wallet acquired 12.5 billion tokens for $50 million during the private sale, but has since sold its entire stash for over $71 million.

While the PUMP token initially showed bullish signs after its launch, it has since experienced the consequences of having a high unlock percentage at its inception.

Market Fluctuations

Recent data from CoinGecko reveals that the token's value plummeted to an all-time low of $0.003642 on July 22, marking a 46.5% decrease from its peak of $0.006812 and a 32% drop since its launch on July 15. The current price is also 7% lower than its initial coin offering (ICO) price of $0.004, resulting in unrealized losses for presale investors who have yet to sell their tokens.

While Pump.fun managed to raise nearly $500 million from its ICO, selling out in just 12 minutes, the aftermath has seen a significant number of participants eager to offload their tokens. Additionally, the broader memecoin sector has shown signs of slowing down, with the market capitalization peaking at $87 billion on July 21 before dipping to $81 billion on July 22.