The price of PUMP has declined significantly following large-scale token sales by two early investors. According to on-chain data, these two wallets – both participants in Pump.fun’s private placement – offloaded a total of 25.5 billion tokens over the past week. The combined value of these transactions was approximately $141 million, with the investors securing profits of around $39.5 million.
No Lock-Up Terms in Private Round
The public sale of PUMP took place on July 12 and sold out in under twelve minutes, raising nearly $500 million. Despite initial momentum, the token’s short-term outlook has been affected by the scale and speed of the early sell-offs.
The private sale did not include any lock-up period for participants. Typically, private or institutional token sales involve vesting schedules to prevent immediate sell-offs and support market stability. In this case, the lack of restrictions allowed early buyers to sell soon after the public launch, at the same price offered to the broader market.
The equal pricing and immediate liquidity have drawn criticism from community members, who raised concerns about fairness and the long-term impact on price stability.
Price Reaction and Market Indicators
PUMP’s price has declined by more than 70% since reaching its peak shortly after the public sale. The token is currently trading below its initial coin offering (ICO) price.
The Relative Strength Index (RSI) has entered oversold territory, while some on-chain data indicates increased exchange outflows. These developments may suggest a shift in sentiment or early signs of accumulation, though the broader market remains cautious.
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Project Response
As of now, the Pump.fun team has not issued any public statement addressing the early token sales or the structure of the private placement. Traders and observers are closely monitoring further movements from large holders, as well as any updates or clarifications from the project team.
