Pump.fun Token Crashes Below ICO Price After $600M Hype Bust

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The Pump.fun token launched with a bang, raising over $600 million in minutes and jumping 20% following a $30 million buyback. But the hype didn’t last long.

Now, the token is trading 20% below its ICO price, with nearly 60% of early buyers already selling. This sharp decline comes despite listings on major exchanges like OKX, BitMEX, Kraken, and KuCoin.

Traders are losing confidence as the Pump.fun token still lacks utility, rewards, or an airdrop, leading many to call it all hype with no real value.

PUMP Token Price Crash Below ICO Floor

PUMP is now trading at approximately $0.00406, down 21% in just 24 hours, and officially below its initial ICO price. The steep drop comes even after the token raised a staggering $448.5 million from over 10,000 participants during its public sale. Despite boasting more than $1.1 billion in 24-hour trading volume, the market remains bearish as bulls failed to defend key support zones.

Sell-Off Pressure Mounts Amid Weak Buyback

BitMEX data reveals that nearly 60% of early investors have dumped their tokens, with only 3% increasing their positions. A failed $2.3 million buyback by Pump.fun further intensified bearish momentum. With previous resistance now forming around the $0.0052 mark, selling pressure continues to dominate the token’s price action.

Adding to concerns, open interest in PUMP perpetual contracts has dropped by over 16%, now standing at $629 million, according to Coinalyze. This suggests a waning of speculative interest and a fading of market enthusiasm, just days after its initial public offering. Meanwhile, competing platforms like LetsBONK.fun are drawing capital away, with Pump.fun’s on-chain revenue and launch volumes declining.

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PUMP’s Collapse Predictable?

Prominent trader Crypto Bully believes more downside is likely unless a strong catalyst appears. Though oversold signals have emerged on Stochastic RSI, traders remain cautious. A chart shared by CryptoA4 on X hinted at a potential bottom, but conviction in that call is limited given the scale of recent outflows.

Another crypto analyst, Gem Hunter, called PUMP’s collapse predictable, citing key red flags: the founder called presales scams but raised $500M anyway, no airdrop was given despite extracting $1.5B from the community, and the token added no real value to Pump.fun. He noted the chart now mirrors a typical Pump.fun dump, with failed buybacks and relentless sell pressure, saying there’s no bottom in sight.

With a rise in bear sentiment, analysts warn that the token could slide further in the short term, highlighting the risks of post-ICO hype cycles in the current market.