‼️Is Pump.fun in big trouble? 2 billion PUMP tokens transferred to exchanges, is the price going to crash?

Recently, the meme coin platform Pump.fun, which has been popular in the Solana ecosystem, seems to have gotten a bit "too hot"—not only has it been jointly sued by two law firms, but it has also been revealed that 2 billion PUMP tokens (approximately $6.95 million) were rapidly transferred to Bybit exchange by institutional investors. Once this news broke, the crypto community exploded with speculation: Is PUMP going to collapse? Today, let's discuss this wave of lawsuits and the risks of PUMP's decline, trying to clarify it in plain language!

⚠️Pump's Fourfold Crisis

1️⃣Market Share Decline

Pump.fun was once the "big brother" in the Solana meme coin space, relying on a simple and crude coin issuance model, with a market share exceeding 70% at one point. However, according to the Jupiter data dashboard, in the market share ranking of Solana coin issuance platforms over the past 24 hours, LetsBONK has surpassed Pump.fun with a market share of 48.9%. The daily average token issuance and trading volume of Pump.fun are both declining.

2️⃣RICO Lawsuit Escalation

Burwick Law and Wolf Popper have listed the Solana Foundation, Jito Labs, and others as co-defendants in the Pump.fun case, accusing them of securities fraud and illegal activities, and citing the Racketeer Influenced and Corrupt Organizations Act (RICO). The RICO Act allows for the retroactive criminal liability, far exceeding the power of ordinary securities lawsuits, with the most severe outcomes potentially triggering asset freezes and the platform being forced to shut down.

3️⃣Token Model Flaws

PUMP unlocked 330 billion tokens (33% of the total supply) right from the start, and the team indirectly controls a significant number of tokens through the foundation, with voting rights possibly exceeding 46%. If the lawsuit continues to escalate, this highly concentrated token distribution and full circulation model may lead to insufficient market liquidity, making it vulnerable to large sell-offs.

4️⃣Whales Suspected of Exiting

According to on-chain analysis, institutional addresses transferred 2 billion PUMP (approximately $6.95 million) to Bybit within 24 hours, setting a recent record for the largest single-day outflow, indicating that some institutions may already be exiting.

If you hold PUMP or are considering buying, it's advisable to stay calm. PUMP's current situation is a bit like "sitting on a powder keg." For those looking to play, remember to control your position and don’t go all in; for those observing, keep an eye on the lawsuit’s progress and market sentiment, and don’t let FOMO cloud your judgment. The crypto world has risks, so enter with caution!