Long positions are getting wiped out in the PUMP Coin (PUMP) market as the token’s price continues to drop.
PUMP is the native token of the meme coin Launchpad Pump.fun built on the Solana blockchain.
According to new data reported today by market analyst Onchain Lens, the long position being held by prominent PUMP investor, Machi Big Brother, has a floating loss of $6.16 million.
The Whale Grappling with Significant Floating Loss
This data shows that the meme coin is experiencing a significant price decline, which has resulted in massive liquidation of millions worth of long positions held by PUMP traders.
A long position in cryptocurrency is a trading strategy that involves purchasing a crypto asset (PUMP in this case) with the anticipation that its price will rise over time. The aim is to sell the crypto asset when the value increases and earn profit from the price rise.
However, fresh data reported by the analyst disclosed that this trading position has been seriously affected as PUMP prices go down, causing significant liquidations. The analyst tracked trading activity of this prominent whale, recognised to currently have lost $6.16 million in his PUMP 5x long position in the crypto derivatives market and also another $1.86 million PUMP loss in the spot market.
This situation highlights the swift price movements and risks connected with crypto trading. It serves as a reminder of the crucial significance of risk management in trading.
What’s Causing PUMP Token Price Fall?Â
Pump coin is a relatively new meme coin that entered the public market mid this month. Despite being launch in January 2024, it has been operating in the private markets. The asset was eventually launched in the public market on July 12 this month.
The asset experienced tremendous demand from investors, with over 125 billion tokens sold out during its first public sale. The public sales were done in several crypto exchanges like KuCoin, Kraken, Bybit, and many others, giving wide access for qualified retail investors to engage in the PUMP token market.
Despite the recent huge demand, Pump coin is currently facing difficulty in performance due to low investor interest. Its current price of $0.02077 is down 46.5% from its ATH witnessed two weeks ago during public sales events.
The massive token price fall has been triggered by increased number of Pump private sale investors selling their tokens to cash out profits. Recent data shows that these prominent whales have so far dumped over $160 million Pump tokens to exchanges causing the meme coin’s value fell below its initial offering price. According to the data, almost 60% of PUMP private investors have sold or transferred coins after the public launch.
