PUMP Insiders Dump $141M, Pocketing $39M Profit
Key Takeaways
- Two wallets associated with PUMP’s private sale sold a combined 25.5 billion tokens worth $141 million, realizing $39.65 million in profit.
- The transactions triggered a split reaction in the crypto community.
- Despite raising $600 million in its public sale and initially surging to $0.0069, the PUMP token has since dropped significantly.
Two addresses linked to the private sale of Pump.fun’s PUMP has offloaded a staggering 25.5 billion PUMP tokens in a week, worth approximately $141 million.
The move follows the token’s earlier reported activity, where three whales shorted $11 million worth of the token before the public sale which ran from July 12 to July 15.
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PUMP Insiders Dump
According to on-chain data highlighted by X user EmberCN, the two wallets executed high-volume transfers throughout the last week.
The addresses sold a combined 25.5 billion $PUMP tokens, netting a total profit of approximately $39.65 million.
One address moved 13 billion PUMP tokens to FalconX, securing an estimated $19.5 million in realized profit.
Meanwhile, another address transferred 12.5 billion tokens to centralized exchanges, earning around $20.15 million.
Community Divided
Private sale participants typically acquire tokens at significantly discounted prices, often with expectations of long-term involvement.
Large token dumps ahead of a public listing are commonly viewed as a bearish signal.
Not only can they undermine price stability, but they may also suggest that early backers are more interested in short-term profit than in the long-term success of the project.
Some members of the community responded critically to the transactions.
“Welcome to Web3: insiders dump, retailers cope,” one X user said.
“It’s easy to look at numbers like this and feel fomo, but real wealth is built with strategy and patience, not just a lucky pump. What’s your long game?” another wrote.
Others, however, took a more optimistic view.
“The FalconX transfer is the key detail,” one user wrote. “That’s not a panic sell on a public exchange; it’s a calculated, institutional-grade OTC deal. Shows the sophistication of the sellers.”
Launch Controversy
The PUMP token’s launch was met with significant criticism from those who believed the token had been inflated.
The initial DEX offering (IDO) allocated 150 billion PUMP tokens from its total supply of 1 trillion at $0.004 each, setting out a $4 billion fully diluted value (FDV).
The FDV peaked at $6.13 billion as the token launched to a price of $0.00061301, an increase of around 53% from its public sale price.
However, some argued that this was an overvaluation, primarily due to the token allocations.
Only 15% were allocated for the public sale, while approximately 40% of PUMP tokens were allocated to the team and its investors.
BitMart Research reported that the token’s biggest critics believe the token “lacks real utility or governance rights.”
Token Price Drops
The PUMP token’s public sale sold out within 12 minutes and raised a massive $600 million.
Following the launch, the price surged to an all-time high of $0.0069, but it has since experienced a significant decline.
According to CCN analyst Valdrin Tahiri, whilethe PUMP price bounced on July 18, following a 47% decline, the rally has already lost momentum.
“Also, the bounce is contained inside an ascending parallel channel, which usually occurs during corrective movements,” he said.
Adding: “PUMP risks breaking down from the channel and falling to new lows.”
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- PUMP/USDT 2-Hour Chart | Credit: Valdrin Tahiri/TradingView
In CCN’s analysis of the token last week, Valdrin suggested the bounce will be corrective, since it is part of wave four in a five-wave decline.
“The price movement has transpired as predicted, and a breakdown from the channel will confirm that wave five is underway,” he said.
Adding: “If that happens, the first zone to look for a potential reversal will be at $0.0032, created by the bounce’s 1.61 external Fibonacci, marking another 25% decline from the current price.”
Pump.fun is now listed on most major crypto exchanges, except for Binance.
The absence of an exchange listing appears to be affecting the token’s price performance, as Binance provides key liquidity for tokens similar to PUMP.
A Binance listing would likely boost the token’s price significantly.
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