A mistake has cost a user a significant stash of the highly sought-after PUMP token, as he accidentally burns $75,000 worth of the coin.
Analytical insight from Lookonchain highlighted this blunder in an X post, one that cost the user 10 million PUMP tokens. The wallet address “4X43Dm” burned the tokens at exactly 13:16 (UTC) on Sunday, a day after the coin’s initial coin offering (ICO).
The user burned the token during a cleanup exercise using software that removes low-value tokens airdropped to his wallet. The unidentified users probably accidentally selected the PUMP tokens, burning $75,000 worth of tokens in the process.
Notably, these errors have occurred before in the cryptocurrency space. The Crypto Basic has reported cases where the Slerf meme coin developer accidentally burned $10 million worth of tokens intended for presale investors. Meanwhile, another such mistake saw Crypto.com send $10.5 million to a customer instead of $100.
User Loses Coveted Pump.fun Tokens
Notably, Pump.fun announced plans to sell a portion of its PUMP tokens to the public on July 12, offering 15% of its total supply in an ICO program. Notably, Pump.fun offered 33% in general, but the other 18% to institutional investors.
Meanwhile, the public offering on the Gate.io platform sold off quickly, precisely in 12 minutes. Pump.fun realized $500 million from the 125 billion PUMP token sales (12.5% of supply), releasing the tokens to the fastest fingers.
Further details from Dune Analytics show that 23,959 wallets completed KYC (know your customer) for the PUMP token ICO, but only 10,147 of them successfully acquired the token. This meant that only 42.3% of the KYC’ed wallets participated in the presale with an average buy of $44,209.
A breakout of the participants identified that 5,758 wallets purchased the PUMP token with less than $1,000, while 1,737 wallets bought with more than $1,000, and 1,030 wallets with over $10,000. Interestingly, 202 wallets bought over $1 million worth of the token.
Heavy Demands Despite Widespread Criticism
The quick sell-off demonstrated the high demand for the Pump.fun token despite criticisms against the protocol’s negative impact on the space. Recall that the Solana-based platform launched in early 2024, offering users an easy route to creating meme coins on the platform.
Meanwhile, the platform started on an impressive note and has recorded over $700 million in revenue amid growing user traction. However, Pump.fun has faced several lawsuits for allowing token creators to post offensive content on their platform in a bid to lure users to buy their meme coins.
Burwick Law and Wolf Popper LLP sued Pump.fun in January on behalf of crypto investors for promoting social vices and explicit content on its website. The lawsuit also claims it defrauded investors and offered unregistered securities.
In an attempt to curb the escalating menace, Pump.fun blocked UK users from accessing the platform and deactivated its live-streaming feature. Nonetheless, the recent investor haul suggests a perception that Pump.fun is still a viable platform.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
