Pump.fun PUMP crypto is selling off despite the successful ICO that raised $600 million in 12 minutes. Whale hedging and overvaluation concerns could slow down recovery.
Meme coins fueled Solana’s rise, driving SOL prices to record highs by January 2025. Central to this rally was the spike in on-chain activity, primarily from meme coin trading and launches on the Pump.fun meme coin launchpad.
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Pump.fun Is Crucial for Solana
Pump.fun revolutionized the minting of SPL tokens on Solana. Its straightforward process for launching new tokens led to tens of thousands of tokens minted daily on the modern blockchain.
The launch of and tokens, less than 24 hours before President Donald Trump’s inauguration, pushed SOL to fresh highs as meme coin activity surged.
Although meme coin activity has subsided since Raydium launched its meme coin launchpad and other projects capitalized on the mania, developers continue to roll out critical enhancements.
After launching the PumpSwap DEX in March 2025, Pump.fun developers announced the PUMP token ICO last week, scheduling the fundraiser for July 12.
The PUMP Crypto ICO Raises $600 Million in 12 Minutes
On Saturday, July 12, Pump.fun raised $600 million in a record-breaking 12 minutes, exceeding expectations as demand soared.
However, despite PUMP being listed for trading on the same day, with top exchanges offering PUMP perpetuals, PUMP prices have not only failed to shine but are currently in the red, trading sideways, much to the frustration of traders.
Binance data shows that crypto is down after reaching all-time highs of around $0.007 over the weekend.
Presently, PUMP is down roughly 10% from its all-time high and remains under pressure. Unless buyers reclaim the July 13 highs, the path of least resistance will remain downward.
Any confirmation of losses posted in the past 48 hours could see PUMP sink below $0.0045 in a bearish trend continuation, inflicting further pain on holders.
Why Is PUMP Selling Off?
To understand the sell-off, one must examine PUMP’s tokenomics. Interest was high because the meme coin launchpad has been a powerhouse behind SOL’s demand, generating over $700 million since January 2024.
The platform has released top Solana meme coins, including PNUT and Popcat. Therefore, it was no surprise that Pump.fun raised $600 million within minutes, offering 33% of the 1 trillion PUMP total supply, valuing the meme coin launchpad at over $4 billion.
This mega valuation is causing jitters, partly explaining the weakness less than 72 hours after launching.
The $4 billion fully diluted valuation (FDV) raises concerns because the meme coin launchpad’s core metrics have been declining over recent months.
For instance, trading volume dropped from over $11 billion in January 2025 to less than $4 billion in June 2025. As a result, revenue has plummeted from around $130 million in January to under $40 million by the close of H1 2025.
(Source: DefiLlama)
Fading meme coin activity on Solana may explain the dip, but the rise of alternatives like LetsBonk and Raydium’s Launchpad erodes Pump.fun’s market share.
Additionally, onchain data shows that whales who purchased millions of PUMP during the ICO hedged their positions by selling on perpetual exchanges.
Although a 48-72 hour distribution phase was implemented to prevent immediate dumping, whales opened short positions on PUMP perpetuals on Hyperliquid and Binance as a hedge.
Their decision to short large positions has added further pressure on PUMP, contributing to the sell-off over the past 24 hours.
DISCOVER: 8 High-Risk High-Reward Cryptos for 2025
PUMP Crypto Struggling After Raising $600 Million
PUMP crypto is moving sideways
Pump.fun raised $600 million in 12 minutes
Overvaluation concerns heaping pressure on bulls
Whales are actively hedging by shorting on perpetual exchanges
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