Pump.fun faces criticism and suspicions after launching its cryptocurrency

Pump.Fun, the star creation platform of Memecoins in Solana, faces strong scrutiny by the cryptocurrency ecosystem, after the launch on July 12 of an initial offer of currencies (ICO) for its Native Pump token.

One of the first alarms that were lit on July 12, when the Pump’s X account A particular measure For the launch of your Token:

“During the next 48-72 hours, all tokens bought through Token.pump.fun or the participating exchanges will be transferred to the participants. The tokens will initially be non-tradable and not transferable while the distribution phase is carried out. Once this phase is completed, the tokens will become tradeable and transferable, and an advertisement will be made.”

Pump.fun in X.

That decision to determine how users can manage their Pump generated discomfort.

Another aspect of the Pump launch that fed suspicions around its transparency was the Distribution of that token supply.

As Cryptonotics detailed, of the total assigned to ICO, which represents 33% of the total supply of 1,000 million tokens, 18% was intended for a private sale already completely awarded, while 15% was reserved for public sale.

However, only 12.5% of that 15% during this first phase was offeredleaving a percentage not clarified without immediate distribution, which has generated questions about its destiny.

In that context, from Unit, a asset token protocol of the Hyperliquid network where Pump’s trading can be made, they recognized on July 15 that «now we are the largest Pump holder outside the Wallets of the Pumpfun team. Unit currently owns 21.7 billion pump, valued at 130 million dollarswhich represents 2.18% of the total supply ».

Additionally, whale waxing movements (large investors) have intensified doubts against possible operations of Insiders.

According to the Look On Chain site, on July 12, during the launch of the Pre-sale, a user identified as ‘FF.SOL’ (also involved in movements with the memecoin Trump) created a new purse and deposited 1 million USDC to participate in Pump’s pre-sale.

This type of movements usually arouses suspicions, since the high characteristic volatility of memecoins makes them risky assets, particularly when it comes to tokens barely thrown.

The injection of a significant sum (like a million dollars) in coincidence with the beginning of a presale It can be interpreted as a possible access signal to privileged informationwhich would allow anticipating the behavior of the price of said asset.

User criticism towards Pump’s launch

A person in X said on July 14 that «pump.fun already sent tokens pump worth 1.5 billion dollars to 8 addresses of freshly created wallets. These addresses were financed with Sol 2-3 days ago from Kraken, Binance and other exchanges ».

That same user speculated that from the Pump.fun team they have not disseminated the allocation to private investors or who these investors are. Forget your Airdropsthese purses will be selling in the open market ».

In addition, another user said: «Basically pump. Fun sent 34% of the offer to Insiderswithout Airdrop, without news, only your team is enriched. That goes down to zero (pump) ».

Despite what is stated by Pump’s critics, those conjectures, for now, are just that, because there are no certain indications that those directions and whales indicated are influencing the Pump’s price.

The price of Pump, symptoms of manipulation?

Another good part of the suspicions of critical users focus on a possible manipulation of the price of token pump by Insiderswho could have operated the “strategy” of pump & dump, to benefit having privileged information.

However, fluctuations in quotes, such as those observed in Pump are a common phenomenon when a new token enters the market. This type of performance is not exclusive to Pump, but often occurs in emerging projects, where the high initial demand and subsequent prices correction reflect the typical speculation of these assets, regardless of the platform that issues it.

Pump, when the pre-sale was launched quoted at $ 0.004 and reached $ 0.01 the same day due to high demand.

According to cryptootics, the ICO raised 500 million dollars in just 12 minutes, exhausting the supply planned to extend until July 15. From Solana they say that That figure amounts to 600 million.

However, the price closed on July 12 to $ 0.007, which represented a 30% drop Regarding the beak of 0.01 dollars of that same day.

On July 14, public sale opened in exchanges that participated in the pre-sale, such as Kucoin, Kraken, Bybit, Gate, Bitget and Mexc, along with other exchange sites such as Coinbase and OKX.

At the beginning of the public sale, the value of Pump continued to fall. On that occasion until 0.0053 dollars, and at the time of this article (July 15) quotes at $ 0.0059. Pump.fun is exercising the repurchase of its tokens to raise the price, which has excited the mood of the community of the community that believes in the project.