Pump.fun Wallets Engage in Systematic Liquidation of PUMP Tokens

Pump.fun, a cryptocurrency platform, has been involved in a systematic liquidation of its tokens. Between February 16th and 22nd, wallets linked to the platform sold approximately $10 million worth of PUMP tokens. This move is significant because it occurred despite the platform's buyback program burning $1 million daily.

The sales were made in a staggered manner, with each sale exerting downward pressure on the token price. The total circulating supply was unable to absorb the flood of new tokens, leading to a price drop of around 10%. This has raised questions about whether linked wallets have inside knowledge about the token's future prospects.

The platform's revenue has been declining significantly since last year, with monthly fees totaling only $31.8 million in January 2026. The upcoming unlock event on July 12th will release an additional 41 to 82.5 billion PUMP tokens into circulation, which could further damage the token price.