Pump.fun’s PUMP Token Launch Raises $500M, Hits $5.6B FDV with $34M Volume in 3 Hours

Sean Williams
pump.fun

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Key Takeaways:

  • Pump.fun’s PUMP token opened with a $5.6B FDV and dropped 7.3% within hours.
  • The project raised $500M in just 12 minutes, with whales dominating dollar inflows.
  • KYC and regional restrictions position PUMP as a regulated memecoin experiment.

Pump.fun’s much-hyped memecoin, PUMP, made a powerful entrance into the market on July 14, opening with a fully diluted valuation (FDV) of $5.6 billion. But just three hours into trading, the Solana-based token fell by 7.3%, raising questions about sustainability in the memecoin’s early momentum.

PUMP Token Sees High Volume, Tight Buy-Sell Split

At 20:30 UTC, the PUMP token was trading at $0.005128, reflecting a slightly reduced FDV of $5.12 billion, based on data from DEX Screener. Despite the price dip, liquidity remained strong at $19.3 million, with 11,160 transactions totaling $34.1 million taking place during the first few hours of trading.

Buyers narrowly outpaced sellers, registering 6,210 purchases versus 4,950 sales. However, in dollar terms, sell volume matched buy activity, with $19.1 million in sales and $18.7 million in purchases, signaling both high speculation and balanced market sentiment.

Historic ICO Raises $500M in Just 12 Minutes

The PUMP token’s launch follows a record-setting $500 million initial coin offering (ICO) on July 12 that lasted only 12 minutes. Priced at $0.004 per token, the ICO distributed 125 billion tokens, split across the official Pump.fun website and four centralized exchanges.

According to Dune Analytics, 23,959 wallets completed Know Your Customer (KYC) checks to participate, but just 42.3% actually received tokens, suggesting supply constraints or delayed allocation.

Whale Activity Dominates Early Distribution

While numerically small investors were in the majority, whales accounted for a significant portion of the raise. The average spend hit $44,209, but the median was closer to $550, indicating that large wallet addresses skewed the distribution. Notably, 202 wallets maxed out at the $1 million cap, while 5,758 spent under $1,000.

Also Read: Pump.fun Snaps Up Kolscan to Power Social Trading Before $600M Token Sale

Pump.fun’s allocation model designates 33% of total supply for the ICO, with other major allocations including 24% for community efforts, 20% to the founding team, and 13% to early investors. The project also carved out smaller percentages for liquidity, ecosystem funds, and a nonprofit foundation.

In a bid to distance itself from chaotic token launches of the past, Pump.fun required identity verification for all contributors and barred participants from the US and UK. The team framed this as a “compliant memecoin” raise, citing regulatory considerations. Over 76% of tokens were distributed directly via the Pump.fun portal, reinforcing the team’s goal of minimizing third-party influence.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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