Today, let's talk about why FUN suddenly plummeted by 8%! Combining the latest data and market dynamics, I’ll briefly outline a few key reasons. Remember to follow after reading!
Large holders' sell-off triggers a chain reaction
Recently, Pump.fun (the platform behind FUN) was reported to have transferred 132,000 SOL (approximately $22.88 million) to the exchange Kraken, which is part of the 3.868 million SOL they have sold off over the past year.
After each large transfer, the market worries that these SOL will be quickly cashed out, putting pressure on SOL's price. As SOL is the 'backbone' of the Solana ecosystem, any decline will also affect tokens like FUN within the ecosystem.
Competitors are 'seizing territory' and causing disruption
Recently, another token issuance platform on Solana, LaunchLab, has emerged, completing the issuance of 198 tokens in one day, surpassing Pump.fun's 171 tokens.
LaunchLab has also implemented a 'pack of wolves' strategy, collaborating with third-party platforms (like Letsbonk.Fun) to grab users, even forcing Pump.fun to introduce a '50% transaction fee profit-sharing' policy to retain users. Seeing that the leading position is unstable, funds started to withdraw and observe.
The overall market is 'cooling down', dragging behind
These past few days, Bitcoin has been holding the $100,000 mark, but the overall crypto market cap has shrunk nearly 1%, and altcoins are polarizing. FUN had just risen 15% the previous day, but today it has been classified as a 'profit-taking' target. With SOL's price dropping 1% in 24 hours, once liquidity tightens, the decline cannot be stopped.
Community sentiment shows 'subtle changes'
A few days ago, Pump.fun caused a stir by 'blocking the founder of a competitor' (though they later unblocked), such platform infighting easily makes retail investors feel that there is serious internal consumption within the ecosystem.
Moreover, the founder previously complained that 'most altcoins and meme coins are no different', leading some investors to doubt the long-term value of FUN and choose to cash out.
Summary: This wave of plunge for FUN can be considered a typical case of 'internal and external troubles'—pressure from their own platform + rival interference, coupled with a market correction, it's natural for retail investors to run for safety. However, the crypto market reverses quickly; let's see if Pump.fun comes up with new strategies tonight, perhaps we can catch a bottom!
(Note: The above analysis is for reference only, the market has risks, and investment should be cautious. For more insights, you can check my profile, and other viewpoints are welcome for discussion.)$FUN #山寨季何时到来 #山寨币交易
