PumpBTC (PUMP) Plummets 45% Following Binance Wallet TGE Event

PumpBTC (PUMP) is set to be the next token to experience a negative reaction following its listing on Binance Wallet. The coin rapidly lost trust and saw a dramatic decline of 45% within one day due to panic selling.

PumpBTC (PUMP), a cryptocurrency focused on decentralized finance using Bitcoin, saw a dramatic drop of 45% on Wednesday. This decline began on April 22, shortly following PUMP’s spotlight as the upcoming Binance Wallet Initial DEX Offering (IDO). Previously, on April 12, PUMP had been highlighted for being the subsequent asset available for perpetual futures trading. Additionally, an active secondary market exists for this token. Bithumb and Bybit.

PumpBTC crashes through the floor

PUMP fell from a recent peak of $0.22 to $0.10, causing a major hit to its reputation. Additionally, open interest plummeted drastically as well. 54% down to only $12M.

The incident comes after the recent collapse of Mantra (OM) and includes allegations of market manipulation for the token.

PumpBTC indicated that the cryptocurrency market could still generate enthusiasm for venture capital-supported initiatives, though these bubbles tend to burst more quickly now. While PUMP is just beginning to explore its pricing dynamics, the rapid sell-offs and thin trading volumes might harm the project's credibility.

This time around, the likely cause of the crash seems to be the recent Bithumb listing. The increased trading volume might have provided early investors with sufficient opportunities to liquidate their positions, yet this led to widespread selling and further exacerbated the market downturn. As the broader cryptocurrency market began to rebound, PUMP continued its decline.

Launched in early April, PUMP has predominantly seen an upward trajectory over recent days, generating significant buzz. The asset benefited from listings on Bybit and Gate_IO and speculation about potential addition to Binance’s platform.

PumpBTC conducted a prominent Initial DEX Offering (IDO).

The chief reason for selling PUMP is that the current price is extremely beneficial for early investors. PumpBTC performed an IDO through Binance Wallet, aimed at distributing 5% of the token’s supply. Buyers on BNB Smart Chain had the chance to acquire PUMP at $0.015, with the chance to sell after the first days of price discovery.

Binance Wallet set a cap at $750,000 worth of BNB for selling up to 50 million PUMP tokens. This sale represented only 5% of the PumpBTC supply and seemed mostly like a promotional tactic to generate interest. Each participant could invest using a maximum of 3 BNB per transaction.

The PUMP IDO did not create whales, but the project also had early backers for its seed round from October 2024. PumpBTC raised $10M in its seed round It distributed the majority of its tokens at significantly lower prices to early supporters. The venture capital support was provided by several funds, such as Mirana Ventures and Mantle.

The initial backers and investors held substantial stakes, which could exert continued selling pressure on the asset over time. Additionally, an extra 2.98 million PUMP tokens were dispersed via Binance’s Launchpool initiative.

Only 29.2% The potential for unlocking additional features within the PUMP system still exists, as many token holders are already managing their assets and possibly looking for ways to liquidate them. The gradual release of further linear unlocks will incrementally increase the total number of circulating PUMP tokens up to 1 billion.

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