Pump Fun, a memecoin launchpad built on Solana, has sold off 99,999 SOL, valued at approximately $22.74 million. The development highlights that it is actively offloading significant amounts of Solana.
Pump Fun’s Historic Solana Selloffs
According to a post on X by Lookonchain, Pump Fun has accumulated 1,487,066 SOL. This quantity is valued at approximately $345 million and acquired through trading charges.
So far, Pump Fun has offloaded 998,242 SOL, estimated at $180.4 million. Interestingly, it sold the assets at an average price of $180.70 per SOL.
The sales have resulted in substantial profits for the meme coin as the assets were accumulated at lower prices. it has recently offloaded 105,000 SOL, proving its active selling strategy.
In October, it sold about 40,000 SOL worth $6.68 million, which caused Solana’s price to fall by 1.56%.
The platform has continued to sell over the months, prioritizing its fee-generation capabilities. Essentially, Pump Fun generates revenue for each sale of memecoins hosted on its platform.
The sale has triggered a wave of concern among Solana investors. Notably, there are concerns that the massive selloff could trigger downward pressure on SOL.
While the meme coin is raking in profit, retail investors and even whales might also begin to dump on the market. If this plays out, it might further drive Solana’s price down.
Backlash Over Live Stream Feature Prompts Suspension
Meanwhile, aside from investors, Pump Fun has faced backlash over its live-stream feature. The feature that it set up to engage community members and promote creativity has turned into a platform for negativity.
Some users on the platform utilized it to spread messages of violence, threat, and hate.
One user reportedly put up a message where he threatened to kill his dog unless his token hit an $11 million market capitalization. Other shocking broadcasts included threats of self-harm, a parent abusing their infant, and much more.
All these users demanded milestone achievements on their tokens.
Following the backlash, Alon, Pump Fun’s anonymous founder, started to defend the platform’s code of “free speech.”
In his statement, he claimed that the platform uses moderators to correct harmful comments and filter unsuitable materials.
However, critics have flayed him, noting that the moderators were inactive in the recent livestream.
This has prompted an indefinite suspension of the live stream feature. Pump Fun assured in a statement that it will publish rules for using the feature properly going forward.
It assured more transparency while providing creators and users with moderation decisions.
Solana’s Volatility Amid Pump Fun’s Actions
While the outrage lingers from community members, the Pump Fun activity has impacted Solana.
The price of SOL has fluctuated intensely during the selloff. As of this writing, it has declined by 3.66% to $231.16.
The only positive for SOL is that the trading volume continues to rise. This metric has increased by 26.94% to $7.37 billion in the last 24 hours.
Nevertheless, in the last seven days, SOL has recorded sharp volatility, with the price crashing from a high of $263.55 to a low of $223.73.
This sharp decline is happening as investors stacked up, looking forward to SOL hitting historic levels at a new high
