Solana’s price faced downward pressure this week after the announcement of a launch of token by Pump.Fun, the same Launchpad corner dominating the creation of tokens of the network.
While the excitement is based on the new pump token, market observers point to capital rotation and short -term volatility for soil. At the same time, some analysts warn that launch may be an opportunistic cash seizure.
Capital rotation to the pump token
According to an article on X by Bullet, an extension of the sales network on Solana, the soil price dropped after Pump.fun announced the launch of its Pump token. Many believe that this movement is linked to the rotation of capital.
Pump.fun has long played an important role in Solana’s ecosystem, with more than 52% of the tokens launched on this network via their platform. Many investors have used soil as a proxy to indirectly benefit from income from the transaction costs generated by Pump.fun.
However, with the announcement of Pump, certain capital may have moved from soil, losing a lower pressure on its price. Crypto Miles Deutscher analyst noted that a decrease of 1% out of a minute period is not too significant but reflects market sensitivity to such events.
“”[Pump.fun token] has a certain negative impact on soil (at least in the short term), because there will be a certain rotation in the pump – because many people have used the ground token as a proxy to increase the generation of chain costs derived from the pleasure of the pump, “said Deutscher on X.
According to the analyst, this rotation could transform into an event “Buy the rumor, sell the news”, where the ground damages have been evaluated beforehand. However, it remains optimistic about the long -term soil.
“Still not lower in the long term, too much traction / mind to ignore, just aware of the short-term impact-could undoubtedly be a purchase opportunity if there is a significant weakness in the coming months,” he added.
Launch of the Pump.fun token as an “outing scam”
The Pump.fun plan to collect $ 1 billion thanks to its token offer has raised significant concerns within the community. Pump.fun has accumulated more than $ 763 million in costs. With such substantial income, the launch of tokens seems unusually late.
“They don’t need to raise $ 1 billion (they already have $ 700 million +!) .. Massive and clearly opportunistic overkill,” said Deutscher.
Soho Wizard trader went further, labeling the launch of Pump. According to Wizardoffsoho, Pump.fun’s revenues fell by almost 90% and the project team is fully aware of this decline.
“It is there that the genius of funny pump developers comes into play. Launch the token before their protocol is worthless and investors get nothing,” he said.
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