PUMP Token quickly rose in price after the ICO, but is now dropping well below the starting price, disappointing investors.
Although PUMP once attracted over 600 million USD in a flash and had a buyback of 30 million USD, this token has now lost faith as nearly 60% of early buyers have sold off and there are no specific useful features.
MAIN CONTENT
PUMP Token plummeted 21% below the ICO price despite large trading volumes.
Selling pressure increased sharply due to failed buybacks and a lack of application.
Experts warn of the risk of further price declines, lacking recovery momentum.
Why is PUMP Token trading below the ICO price?
The price of PUMP is currently only about 0.00406 USD, down 21% in 24 hours, lower than the initial price at ICO. Despite raising 448.5 million USD from over 10,000 investors, the token still faces strong downward pressure and cannot maintain the important support level.
According to reports from major exchanges, PUMP has a daily trading volume exceeding 1.1 billion USD, but the market trend remains negative due to a lack of actual value and weak community participation.
Why is selling pressure increasing, and weak buybacks worsening the situation?
Data from BitMEX shows that nearly 60% of early buyers have sold off PUMP, with only 3% increasing their holding rate. The project's buyback of 2.3 million USD was not enough to lift the price, further weakening liquidity.
According to data from Coinalyze, the open interest index of PUMP's perpetual contracts has dropped over 16% to 629 million USD, reflecting a cooling off in speculative activity, while rival platforms like LetsBONK.fun are attracting capital flows.
"The price drop of PUMP could have been predicted as there is no clear upward momentum and weak buyback signals."
Crypto Bully, cryptocurrency market expert, June 2024
Can PUMP recover or will it continue to decline sharply in the near future?
Insights from renowned analysts like Crypto Bully and Gem Hunter suggest that PUMP may continue to decline if there are no new news or improvements. The oversold signal system is merely a warning but not convincing enough for a long-term recovery.
Gem Hunter further analyzes that the project's lack of accompanying airdrops, failure to create useful value, and inability to retain investors make it even harder for PUMP to maintain its price.
"PUMP is a typical phenomenon of a token dump when the buyback fails, continuous selling pressure, and lack of transparency."
Gem Hunter, cryptocurrency analyst, early June 2024
Frequently asked questions about PUMP Token
How much did PUMP Token raise in the ICO?
Raised approximately 448.5 million USD from over 10,000 investors in the public sale.
Why is the price of PUMP dropping sharply despite large trading volumes?
High selling pressure, a buyback of 2.3 million USD was ineffective, many early investors sold off, causing the price to drop sharply.
Does the PUMP project offer any airdrops or rewards?
Currently, there are no airdrop or reward programs, disappointing the community.
What is the biggest risk for PUMP investors?
The risk of prolonged price declines due to a lack of application features and significant upward momentum.
Do experts have any positive predictions for PUMP?
Most warn of the risk of further declines if there are no clear price-driving events.
Source: https://tintucbitcoin.com/pump-fun-token-rot-gia-sau-sot/
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