4 hours ago
13
Solana-based meme Launchpad Pump.fun has remained on the investor radar in the past few sessions as its much-awaited ICO aligned with broad-based crypto rallies.
While events like Gate.io removing Pump.fun’s page days ahead of the public sale sparked worries, the meme coin generator raised $500 million within 12 minutes as PUMP saw staggering demand.
The massive numbers raised eyebrows, with excitement dominating the Solana ecosystem amidst the hype.
However, PUMP failed to sustain the momentum, plummeting since the Saturday ICO.
It trades at $0.01599 after a 38.53% decline from $0.0261.
Chart by CoinmarketcapFurthermore, experts are noticing cracks in the altcoin’s breakout moment.
Pump.fun’s public sale attracted community speculations as token distribution sparked confusion.
Community demands accountability after $500M token sale
Pump.fun confirmed the ICO on July 9, unveiling plans to sell 33% of the 1 trillion PUMP coins through an initial coin offering.
That included allocating 18% for private sales to institutions and 15% for the public.
The ICO saw massive demand as users rushed to grab PUMP at $0.004 per asset.
While scheduled to take up to three days, Pump.fun’s public sale lasted less than 15 minutes.
Nevertheless, issues surfaced as the dust cooled.
The project had sold only 12.5% of PUMP’s total supply, raising questions about the missing 2.5%.
The Launchpad hasn’t clarified the allocation change.
Meanwhile, the lack of official updates has triggered various speculations about whether the Pump.fun team sold the assets privately, held them, or reallocated them somewhere else.
Gate.io’s pre-launch drama
Pump.fun’s public sale raised concerns after crypto exchange Gate.io unexpectedly removed PUMP’s listing page days before the event.
The trading platform had earlier launched a presale for the new tokens. However, it later refunded investors without detailed explanations.
Surprisingly, users had purchased PUMP tokens worth $5 million despite the listing cancellation.
That added another layer of confusion around the presale coordination and execution.
What’s next for ICO participants?
All tokens that users purchase remain non-transferable and non-tradable.
The team confirmed that participants would receive their assets within three days, but they can only sell or transfer the PUMP allocation after the distribution phase.
During the next 48-72 hours, all tokens purchased via token.pump.fun or participating exchanges will be transferred to the participants.
The tokens will initially be untradable and untransferable while the distribution phase is carried out. Once the distribution phase is complete, the tokens will become tradable and transferable.
The restriction is likely to calm investors as many remain anxious about PUMP’s price actions once trading begins.
The existing controversy could trigger massive dumps from early investors.
That would catalyze enormous price dips for the new meme token.
Meanwhile, Solscan data shows all six participating CEX, including Kraken, Bitget, and Bybit, have received their PUMP allocations.
The upcoming sessions will tell whether Pump.fun’s ICO debut raises red flags, or is it just a bumpy launch?
The post Pump.fun’s PUMP dips 40% as Launchpad faces backlash after $500M public sale appeared first on Invezz
English (US) ·