PUMP Token Drops 75% Amid Whales’ Shorting Moves
- PUMP token falls 75% post-launch due to whale shorts.
- $500M presale raised in 12 minutes.
- 55% of tokens unlocked at launch increases volatility.
PUMP token experienced a sharp 75% decline post-launch due to significant whale shorting on the Solana blockchain.
The event showcases how large presale unlocks and aggressive shorting can lead to market volatility, affecting investor confidence.
PUMP’s $500M Presale Sets Stage for Volatility
PUMP token launched following a successful $500 million presale, drawing attention and high expectations among investors. The Pump.Fun Team, Project Team, stated, “The token sale will have 150 billion PUMP tokens available immediately post-sale, creating a significant circulating supply with minimal lock-ups for the public allocation. Team and early investor tokens are subject to 1-year lock-up prior to gradual release.”
Initiated by Pump.Fun, the token entered the market but quickly fell as whales began shorting.
Investor Fears Rise with Token Volatility
The sudden drop caused concern in the crypto community, particularly due to fears of presale unlock flooding the market. Volatility led many to question token stability.
Financially, this sharp decline demonstrated how swiftly market conditions can change with large holder activities.
Lessons from PEPE and BONK Volatility
Past launches, such as PEPE and BONK, demonstrated similar volatility due to large presale hype, reflecting current patterns.
Based on historical data, experts predict that unless whale activities stabilize, market instability may persist.
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