A private sale investor has lost an estimated $6 million due to a costly misstep involving a Binance deposit. Known as “PUMP Top Fund 2,” the investor moved 2 billion PUMP tokens—then worth $12.79 million—to Binance eight days ago while anticipating that the exchange would likely list the token in spot markets.
At the time, the token was trading at $0.0064. However, Binance did not list PUMP on its spot market. Consequently, the deposit failed and the tokens were returned nearly a week later when PUMP had already plunged by over 45%.
As reported by Lookonchain, the investor quickly sent their PUMP tokens to Bybit right after receiving it back from Binance in a reverse transaction. Unfortunately, this last-minute decision could not take advantage of the earlier price peaks. Selling the token at today’s market price of nearly $0.003 would result in an approximately $6 million loss.
While pumped initially, PUMP price has now fallen below its private sale price of $0.004, which indicates that early backers are feeling the heat.
Heavy Selling Follows Explosive Launch
Pump.fun made headlines earlier this month after raising $600 million through its initial coin offering (ICO) and it was sold out in just 12 minutes. However, data from BitMEX shows that nearly 60% of presale investors quickly offloaded their tokens. Only 37.4% chose to hold, while a small 3% increased their positions.
Moreover, large unlock percentages and rapid exchange deposits added selling pressure. “PUMP Top Fund 1” had already moved 17 billion tokens, worth $89.5 million, to exchanges via FalconX.
Lawsuit Targets Pump.fun’s Ecosystem
Pump.fun has now been drawn into legal trouble. According to the court filing, Pump.fun allegedly facilitates anonymous high-risk speculation through unregulated token launches and through the back door.
Besides the market drama, this lawsuit adds another layer of risk to a token already under pressure.
Also Read: Pump.fun’s PUMP Slides 20% After Co-Founder Delays Airdrop Plans
