Pump.fun Unloads $25M SOL Amid Solana’s Price Surge

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As a seasoned crypto investor with a decade of experience under my belt, I must confess that I find the recent actions of Pump.fun somewhat troubling. I remember the days when projects like these were built to empower the community and foster growth in the ecosystem, not to cash out at every opportunity.

“Pump.fun, a prominent memecoin launchpad, has just sold 105,000 SOL tokens, worth approximately $25.14 million. This sale is putting more strain on the price of Solana. The blockchain analysis platform Lookonchain disclosed this transaction, mentioning that the tokens were sent to Kraken in one go. This transaction is part of a series of similar sales made by Pump.fun, as they’ve been gradually withdrawing their fee earnings over recent months.

The timing for this sale holds importance because Solana’s value has been on the rise. It started at around $135 and has surged up to nearly $180, which is close to its highest recorded price (ATH). At the moment, it stands at $241.66. It’s worth noting that this isn’t the first occasion where Pump.fun has offloaded substantial amounts of SOL during a price uptick.

Earlier this month, the platform sold 43,000 SOL when the token breached the $200 resistance level.  

From its beginning, Pump.fun has amassed a grand total of around 1,307,966 Solana (SOL) in fees, which equates to approximately $315 million. So far, they’ve sold off 898,243 SOL, or about $157 million, allegedly for operational expenses. This has ignited debates within the crypto community regarding the use of these funds.

Some people believe the platform deserves its income, but there are concerns that frequent sales might affect Solana’s price consistency unfavorably.

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2024-11-19 09:24