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Pump.fun Token Crashes Below ICO Price After $600M Hype Bust
The excitement surrounding the launch of Pump.fun token has abruptly come to a halt as its price crashes below its initial ICO price. This sudden downturn is a stark contrast to the frenzy that saw the token raise a staggering $600 million in minutes, resulting in a 20% surge shortly after.
According to recent data, the PUMP token has plummeted by 21% over the past day, currently trading at around $0.00406. The massive sell-off pressure comes as nearly 60% of early investors have dumped their tokens, leaving only 3% of traders increasing their positions. This drastic shift in sentiment has been exacerbated by a failed $2.3 million buyback effort by Pump.fun.
In the absence of any tangible utility, rewards, or airdrop, bears are gaining momentum, fueled by the lack of real value being added to Pump.fun’s platform. The token’s on-chain revenue and launch volumes have also begun to decline, with capital flowing towards competing platforms like LetsBONK.fun.
Noted crypto analyst Crypto Bully believes that more downside is likely unless a strong catalyst appears, citing the token’s collapse as predictable given the absence of substantial value proposition. Another prominent trader, Gem Hunter, corroborated this forecast by pointing out the founder’s inconsistent behavior and refusal to provide any utility or rewards to early backers.
As PUMP’s chart now eerily mirrors its typical dump pattern, with relentless sell pressure and failed buybacks, it is difficult to imagine a swift turnaround without significant changes being implemented.
Source: coinpedia.org
