Private sales investors at Pump.fun (Pump) Memecoin began to load billions of tokens into exchange, raising concerns about the sale as the tokens fell below their initial sales value.
Blockchain analytics firm LookonChain has flagged two early supporters of Memocoin Tokens, labeled “Pump Top Fund 1” and “Pump Top Fund 2” at Solkan, collectively sending more than $160 million to the pump tokens for a central exchange.
During the private sale, Top Fund 1 Wallet acquired 25 billion tokens at USDC (USDC) for $100 million. Last week, the wallet deposited 17 billion tokens worth almost $90 million in exchange. The whale has started off roading, but still holds tokens worth $29.5 million.
The second wallet purchased 12.5 billion tokens for $50 million during a private sale, offloading camps that exceeded $71 million.
Pump.fun tokens will drop as pre-sale participants offloading the token
The pump token showed signs of bullishness shortly after its launch, but it also began to show the effect of high unlocking rates.
Coingecko data shows that over the past seven days, the token value has dropped to a history low of $0.003642 on Friday. This represents a 46.5% drop and a 32% drop from the all-time high of 0.006812 since its launch on July 15th.
The current price range also shows a 7% decrease compared to the initial coin offer (ICO) price of $0.004. This means that pre-selling investors who do not sell tokens face unrealized losses.
On July 13th, Pump.Fun raised nearly $500 million from its first coin offering of pump tokens, selling out in 12 minutes. However, some participants wanted to offload the token after the ICO.
On Thursday, Bitmex shared Onchain data, indicating that nearly 60% of participants in Pump Pressure had exchanged or sold or transferred tokens to other wallets. At the time, 37.4% of pre-sale participants held the token, while 3% continued to increase their holdings.
Bitmex analysts said that thanks to the high unlock rate after launch, the Pump’s post-launch appreciation was contrary to expectations. Big floats often lead to strong downward pressure in the derivatives market, Bitmex said.
Related: Pump.Fun buys Kolscan on the first acquisition and buys Eyes Gameified Trading
The Memecoin sector will surge to $87 billion on July 21st
Meanwhile, the broader memocoin sector is beginning to show signs of slowing down. CoinmarketCap data shows Memecoins’ overall market capitalization peaked at $87 billion on Monday, up 58%, up 58% from $55 billion on June 30th.
This was followed by a rapid fall on Tuesday to a low of $81 billion. At the time of writing, the Memecoin sector has a market capitalization of $82 billion, according to CoinmarketCap.
Anthony Anzalone, founder and CEO of Layer-1 blockchain network Xion, previously told Cointelegraph that Memecoin’s market capitalization increased showed that capital was nowhere to be good at flowing anywhere.
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