Pump.fun’s native token, PUMP, took a major hit this week, falling over 19% in a single day after Co-founder Alon Cohen confirmed that the long-awaited airdrop won’t be happening any time soon. The update came during a live interview and sent shockwaves through the community, leading to a further slide in price and triggering a wave of selling pressure.
Within just a week of its launch, PUMP has now lost nearly 50% of its value, showing just how quickly sentiment can change in the meme coin market.
Airdrop Delay Sparks Panic
During a live interview with crypto influencer ThreadGuy, Alon Cohen tried to reassure the community by stating that the airdrop is still on the roadmap, but won’t take place in the immediate future.
“When it comes to the airdrop… there will be an airdrop,” Cohen said. “But it’s not going to be taking place in the immediate future. We’ll communicate the details once they’re available.”
He explained that the team wants to ensure the airdrop is “meaningful” and well executed, with the goal of rewarding loyal community members who have supported the platform for over a year. However, that wasn’t enough to calm the market.
Many investors were expecting quick rewards shortly after the token generation event (TGE). The announcement was seen as a major letdown, especially for those banking on short-term gains. Within hours of Cohen’s statement, PUMP lost another 12%.
Price Drops Below ICO Levels
The token was initially priced at $0.004 during its pre-sale and peaked briefly at $0.0067 post-TGE. However, the price quickly reversed as hype cooled off. By Tuesday, it had dropped below its ICO level. After Cohen’s interview, it fell further to $0.003054, and continued downward.
Adding to the sell-off pressure, blockchain analytics platform Lookonchain revealed that wallets tied to private-sale investors dumped over 1.2 billion PUMP tokens at around $0.003. This sell-off, worth about $3.8 million, happened in just two hours and contributed to a further drop in price.
This mass exit by early investors caused a breakdown of support, leading to even more panic selling among retail traders.
Big Traders Still Taking Bets
Despite the steep drop, not all investors are fleeing. Prominent crypto figure Jeffrey Huang, known as Machi Big Brother, reportedly increased his PUMP holdings, even though his position is now down over $5.8 million.
This move suggests that some in the market still believe in the long-term potential of Pump.fun, or are betting on a possible bounce once the airdrop or other catalysts come into play.
However, the overall sentiment has clearly shifted. What started as a highly anticipated meme token has quickly turned into a case study of how fast momentum can fade when expectations aren’t met.
Meme Coin Volatility on Display
Pump.fun became popular for allowing users to easily create and trade meme coins on the Solana blockchain, tapping into the viral culture that drives much of the current altcoin market.
The platform’s quick rise to popularity was powered by speculation, social media hype, and promises of future airdrops. But with rewards delayed and large token unlocks putting constant sell pressure on the market, the enthusiasm has cooled.
As of Wednesday, PUMP’s market cap still stood at $1.08 billion, while its 24-hour trading volume surged by 62% to $942 million. The high volume signals that the token is still actively traded, but it may also reflect traders exiting their positions rather than entering.
PUMP’s sharp decline is a reminder of how volatile and sentiment-driven meme coins can be. With expectations unmet and private-sale investors cashing out, Pump.fun’s token is facing an uphill battle to regain investor confidence.
Until airdrop details are officially announced and more clarity is provided on long-term plans, traders are likely to remain cautious. For now, PUMP is a token to watch, but also a lesson in how quickly hype can turn to hesitation.
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