PUMP Token Investors Withdrew $160 Million on Exchanges Amid Asset Price Collapse

Early investors in the Pump.fun project began an active sell-off of PUMP tokens, withdrawing more than $160 million to centralized exchanges. The massive liquidity outflow occurred after the token rate fell below the initial offering price. This heightened concerns about a possible correction in the broader memecoin market, despite the sector’s recent rapid growth.

According to Lookonchain, the two major wallets involved in the closed sale, PUMP Top Fund 1 and PUMP Top Fund 2, have moved a significant portion of their assets. The former invested $100 million in 25 billion tokens and then moved more than 17 billion PUMPs worth $90 million to exchanges. The wallet is left with about $29.5 million in tokens.

The second fund also completely sold out its position: it bought PUMP for $50 mln and brought the whole volume to the stock exchanges – more than $71 mln. Such activity increased the pressure on the market and aggravated the decrease of quotations.

After a short-term growth of the token immediately after the launch, the price began to decline. According to CoinGecko, PUMP reached $0.0068 on July 15, but already on July 19 it dropped to $0.00364. This is 32% lower than the initial offering price of $0.004.

BitMEX estimates that about 60% of presale participants had already sold or withdrawn their tokens by July 18. Only 37.4% are holding assets, and only 3% continue to accumulate. Analysts believe that the high rate of unlocking played a key role in deviating from sustainable growth.

Meanwhile, the entire memecoin sector began to correct. After a peak of $87 billion on July 21, capitalization fell to $82 billion. Earlier in June it was only $55 billion, which suggests a sharp, but perhaps short-term inflow of interest.

Anthony Anzalone, head of blockchain project Xion, said that the rapid growth in the value of meme assets may indicate a lack of new directions for capital in the crypto industry. This increases the likelihood of speculative volatility and rapid loss of interest in such projects.