Solana’s Memecoins star-creation platform Pump.Fun is facing strong scrutiny by the cryptocurrency ecosystem after its launch on July 12th and after the launch of the first currency offering (ICO) of Native Pump Tokens.
One of the first alarms that the Pump X account lighted up on July 12th Specific scales For token launch:
“For the next 48-72 hours, all tokens will forward token.pump.fun or participation exchange to participants. The tokens are not initially traded and cannot be transferred while the distribution phase is running.
Fun with x.
The decision to determine how users manage the pumps produced discomfort.
Another aspect of pump firing gave doubts about its transparency: Distribution of the token power source.
As detailed by Cryptonotics, 18% is already intended for fully awarded private sales, as it represents 33% of the total supply of 1,000 million tokens of the total allocated to ICOs. Meanwhile, 15% were reserved for public sales.
but, In this first phase, only 12.5% of that 15% was offered.leaving a percentage that is not clear without immediate distribution that doubts about its fate.
In that context, the high lipid network asset token protocol, which allows the unit to conduct pump trading, was announced on July 15th, “Now we have recognized that we are the largest pump holder outside the wallet of the PumpFun team. The unit currently owns 21.7 billion pumps, It’s worth $130 millionrepresents 2.18% of the total supply».
Furthermore, whale waxing moves (large investors) have strengthened doubts about possible operations insider.
During the pre-sale sale on July 12, a user identified as “FF.SOL” (also involved in the move with MemeCoin Trump) created a new wallet, according to the appearance of the chain site. I deposited 1 million USDC to participate in the pre-sale of the pump..
This type of movement usually raises doubt as it is a dangerous asset, especially when it comes to barely thrown tokens, due to the high characteristic volatility of Memecoin.
Injection of a chance significant amount (like a million dollars) with pre-pre start Can be interpreted as a possible access signal to privileged informationyou will be able to predict the price behavior of this asset.
User criticism of pump launches
X’s person said on July 14th «pump.fun already sent the value of the token pump Addresses from $1.5 billion to 8 for newly created wallets. These addresses were funded by Sol from Kraken, Binance and other exchanges 2-3 days ago».
That same user speculated from the pump.fun team that he had not spread the allocation to private investors or who these investors are. Forget you Airdropthese wallets are sold in open markets ».
Additionally, another user stated: «It’s basically a pump. Fun sent 34% of the offer insiderWithout airdrops, without news, only the team will become rich. That goes down to zero (pump).»
Despite what Pump critics say, these speculations are all for now. Because there are no specific indications that the directed instructions and whales are affecting the price of the pump.
Pump price, operation symptoms?
Another good part of the important user doubt is Possibility of operation of token pump price insiderwho could have manipulated the “strategy” Pumps and dumps, To benefit from having privileged information.
However, quoting variations, such as those observed at the pump, are a common phenomenon when new tokens enter the market. This type of performance is not exclusive to pumps, but often occurs in emerging projects where initial demand and subsequent price corrections reflect typical speculation of these assets, regardless of the platform that occurs.
When the pump, pre-sale was launched, due to high demand, it was estimated at $0.004 on the same day, reaching $0.01.
According to Cryptootics, the ICO raised $500 million in just 12 minutes, running out of supply planned to extend until July 15th. That number is 600 million.
However, the price ended on July 12th at $0.007. 30% drop About the beak for $0.01 on the same day.
On July 14th, Public Sale opened exchanges that took part in pre-sale sales such as Kucoin, Kraken, Bybit, Gate, Bitget, Mexc, and other exchange sites such as Coinbase and OKX.
When public sales began, pumps continued to decline. I’m quoting that opportunity to $0.0053, and at the time of this article (July 15th) at $0.0059. Pump.Fun is exercising token repurchases to increase prices.