After completing a public token sale in minutes, the Pump token has spiked by 16% in premarket trading. As investors eye the start of trading, Bybit is blaming a Pump.fun API delay for causing an oversubscription to the offering.
Pump Token Spikes Ahead Of Official Trading Launch
According to exchange data from Hyperliquid, Pump.fun’s Pump has surged by 16% over the last day in a rally driven by its initial coin offering (ICO). At press time, the Pump token is exchanging hands at $0.006725 in pre-market with investors jostling for positions ahead of trading launch.
Previously, the team announced the Pump.fun public token sale, offering 12.5% of the total supply to investors. Barely 12 minutes after the launch of the public sale, investors gobbled up all the Pump tokens at $0.004, raising $500M in the process and an additional $100M from centralized exchanges.
Data from MEXC also confirms a 16% spike in PUMP price over the last day. However, Pump.fun has barred all token trading till full distribution to investors, targeting a 48 -72 hour window.
“After distribution, transfers will be enabled,” read a notice from Pump.fun.
Amid the premarket buzz, there are fears of a price correction upon full trading launch. According to the pseudonymous Spot On Chain, traders can short the token and, upon distribution, use the token to close their short position to net a low-risk gain.
“For ICO participants, they can make 40% by going short on pre-market now and close when receiving the token,” said Spot On Chain. “With the cap at $1M, they cqan make $400K with low risk.”
Bybit Blames API For Oversubscription
Bybit revealed in an official statement that the Pump.fun token was oversubscribed by users of the centralized exchange. The top exchange is blaming “an unexpected API delay” for the oversubscription of the offering, leading to some users failing to receive their allocations.
Going forward, Bybit says it will fully refund users that are yet to receive their allocations flowing to the API delay. In the meantime, the exchange is verifying final allocation outcomes to unfreeze funds from users who attempted to subscribe to the offering.
Prior to the token sale, Pump.fun acquired Kolscan, a wallet tracking tool to improve its social and gamification functionalities.
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Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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