Pump.fun sells off $10 million worth of PUMP as buyback programs fail to prevent the decline

Between February 16 and February 22, wallets believed to be linked to Pump.fun systematically liquidated $10 million worth of PUMP tokens, causing the price to plummet to around $0.0017, a drop of over 10% due to continuous selling pressure.

PUMP Price Chart | Source: CoinphotonIt is noteworthy that during this same period, Pump.fun’s platform continued its token buyback program with a scale of $1 million daily, funded by revenue from user fees. This contradiction raises serious questions: do these wallet owners possess insider information that regular investors do not have access to?

Six-Day Dumping Pattern: A Carefully Planned Exit

The first sell-off was recorded on February 16, when wallet 77DsB liquidated 543 million PUMP tokens worth 1.2 million USDC. Notably, this transaction resulted in an actual loss of up to $2.48 million compared to the initial cost basis that this wallet received seven months earlier, in mid-2025.

Accepting such a loss is not typical profit-taking; it reflects a strategic decision based on pessimistic future forecasts. An investor willing to incur millions of dollars in losses is certainly predicting much worse market conditions ahead.

Prolonged PUMP Sell-Off | Source: XA sharp sell-off escalated on February 19, when the same wallet continued liquidating 2.07 billion PUMP tokens, earning 4.55 million USDC. The peak of the sell-off occurred on February 20-21, with 3.376 billion tokens sold within 48 hours, equivalent to $7.23 million.

Interestingly, transactions were executed in multiple small orders ranging from 14.3 million to 14.4 million PUMP each, rather than a single large block sale. This tactic minimizes market impact and slippage, allowing for better sale prices.

By February 22, wallet 77DsB completed liquidating all remaining positions. Simultaneously, a related wallet GpCfm transferred 1.21 billion PUMP worth $2.57 million to the Bitget exchange. The total liquidation over six days reached approximately $10.5 million, with each wave exerting significant downward pressure as supply far exceeded demand.

The liquidation began at the end of January | Source: XYThe timing is critical, as a major token unlock event is scheduled for July 12, 2026. This unlock is expected to release an additional 41 to 82.5 billion $PUMP tokens into circulation.

With the current circulating supply, the market will struggle to absorb this massive influx without causing a severe price decline. The actions of wallets linked to Pump.fun clearly indicate they are fully aware that the token cannot sustain its current price after this event.

$1 Million Buyback Program Fails Against the Selling Wave

Pump.fun’s platform has been operating a token buyback program using 98%-100% of its revenue. To date, the total accumulated buyback value is between $295 million and $301 million, with recent daily token burns around $1 million. Specifically, on February 20-21, daily buybacks were $1.3 million and $270,000 respectively. This program has successfully reduced circulating supply by 14% to 25%, creating a price floor through scarcity effects.

Buyback Transactions in Pump.fun Ecosystem | Source: XHowever, this buyback effort was completely powerless against the six-day sell-off. While the platform burned $1 million daily, linked wallets withdrew a total of $10 million. The selling pressure overwhelmingly exceeded buying, creating a net negative market impact. PUMP broke through the key support level of $0.0020, approaching the December 2025 low of $0.001678.

The initial transaction revealing a $2.48 million loss signals a critical warning. No investor willingly accepts multi-million dollar losses unless forced by circumstances or possessing insider information about impending negative developments.

Platform revenue has plummeted 75% year-over-year, from over $7 million per day in 2025 to just $1 million–$1.5 million daily at the start of 2026. Total fees collected in January 2026 amounted to only $31.8 million. Revenue decline reduces buyback capacity, weakening the platform’s ability to support the price.

Revenue Collapse and Dilution Risks: The Drive to Exit

An ironic fact: users have contributed a total of $935 million in platform fees over its operation but received no airdrops, while wallets associated with the platform systematically withdrew $10 million just in February. This is a clear structural injustice: those funding the platform through usage are not rewarded, while “internal” wallets profit millions.

Statistics show that 98.6% of tokens launched on Pump.fun failed. Most projects on the platform are pump-and-dump schemes or outright rug pulls, where founders abandon the project after stealing investors’ funds.

The platform is currently facing a $500 million lawsuit filed in January 2025, accusing Pump.fun of facilitating securities law violations through pump-and-dump schemes. Now, the PUMP token itself is showing a similar pattern, with linked wallets dumping on holders.

Conclusion: A Perfect Storm Is Brewing

The combination of multiple negative factors—revenue collapse, an upcoming massive token unlock, and increasing legal pressure—creates ideal conditions for a strategic exit. Pump.fun wallets are choosing to exit now because they understand that waiting will only lead to much worse prices.

In July, tens of billions of tokens will flood the market upon unlock. The lawsuit could force the platform to change its operational model. Revenue continues to decline, further weakening its ability to support prices through buybacks.

All these factors are converging negatively, making February the optimal window for exit—especially for those with insider knowledge of the platform’s true state and future prospects.