Launched on July 12, 2025, PUMP is the utility token behind Pump.fun, a platform built on Solana that lets users create and trade memecoins. The token began trading at roughly $0.00598 following an ICO that raised about $1.32 billion.
The token’s creators – Noah Tweedale, Alon Cohen, and Dylan Kerler – had earlier priced the ICO at $0.004 per token. Despite a promising start, the token experienced early market turbulence shortly after going live.
Read also: PUMP ICO Sells Out in 12 Minutes, Raising Over $500 Million Amid Exchange Issues
What Caused the 62% Freefall on PUMP’s Launch?
On its first day, PUMP saw heavy selling pressure. The price dropped about 62% from the open, a reaction tied to low liquidity and profit-taking from early investors.
Trading mainly took place on decentralized exchanges like Raydium and Meteora, where limited order depth led to rapid price movements. Despite the drawdown, PUMP reached a market cap of approximately $2.45 billion, with a fully diluted value above $6 billion.
Whales and early participants took advantage of the situation by opening short positions. This added further strain to the price. However, as volatility settled, liquidity on Raydium climbed back to $27.5 million, helping stabilize activity. The token later rebounded to $0.0067 during the first major recovery phase, regaining 27% from its local low $0.0051.
On-chain indicators started to shift direction. Around 70% of major wallets changed their positions from short to long on platforms like Hyperliquid. Within 24 hours, short liquidations topped $2.02 million, supporting the token’s recovery. A reduced circulating supply and improving market sentiment helped attract broader interest from speculative traders.
Pump.fun Buyback 3B PUMP Tokens
To slow the selloff and reinforce confidence, Pump.fun announced its first official buyback shortly after launch. The team used 118,350 SOL – worth approximately $20 million – to purchase 2.99 billion PUMP tokens. These were then transferred into a treasury wallet, effectively reducing circulating supply. The price response was immediate, lifting back to $0.006 and calming early fears of a prolonged downturn.
Some observers speculate that these treasury-held tokens could be earmarked for future burns or tied to delayed vesting terms, though no official statement confirms this. Analysts like Miles Deutscher have mentioned the project’s caution around distributing too many tokens at once, as it might result in excessive selling pressure that would undo the gains made through buybacks.
The buyback also served to restore credibility. Pump.fun’s reaction was interpreted as an effort to offset earlier distribution problems and show readiness to support token stability after the high-profile ICO. Although there has been no clear communication on whether more buybacks will occur, the first intervention gave the team some breathing room as new investors came in.
System Failures Locked Out Buyers
Not all issues came from the market itself. During the initial sale, platforms like Kraken and Bybit experienced technical breakdowns. Some users were locked out of purchases due to system overloads and processing delays, leading to widespread complaints. In response, both exchanges acted independently to resolve the matter.
Rather than waiting for instruction from Pump.fun, these platforms turned to the open market to acquire PUMP tokens and send them directly to affected users. This ensured that participants who had intended to buy were made whole, even though the purchases did not go through during the ICO.
Such moves came as damage control. They also provided more momentum to PUMP by increasing exposure and circulation outside the usual trading routes. This helped maintain retail interest at a time when a loss of access could have triggered more negative sentiment.
MEXC and Crypto.com Push PUMP with Structured Airdrops
Beyond compensation efforts, other exchanges initiated promotional events tied to the new token. MEXC and Crypto.com organized bonus-based airdrops after the listing. From July 14 to 20, MEXC rewards users who deposit or refer others with a chance to receive up to $2,000 in PUMP and additional USDT bonuses. The campaign was designed to stimulate early trading while maintaining platform traffic.
Crypto.com runs a separate event between July 14 and July 21. It allocated $200,000 worth of PUMP for users who buy CRO or LION tokens during that period. This structure gives users an extra way to benefit from activity outside the ICO while also reinforcing PUMP as part of broader ecosystem events.
