- Pump token gains 16% in premarket trading following a $600 million token sale.
- Spot On Chain notes traders could gain 40% by shorting before the token distribution.
- Bybit attributes oversubscription issues to API delays and confirms user refunds are underway.
The Pump.fun PUMP token has gained 16% in premarket trading after a sold-out public token sale. According to Hyperliquid’s perpetual market, the token was priced at $0.006725 as of press time. This sharp rise came despite the token not yet being available for full trading.
Pump.fun had earlier offered 12.5% of the total PUMP token supply during its public token sale. The offering ended within 12 minutes, with investors purchasing tokens at $0.004 each. The on-chain sale raised $500 million, while an additional $100 million came from centralized exchanges.
Planned Delay in Trading
The project previously informed the public that the PUMP token would not be tradable for 48 to 72 hours following the sale. This delay allows the team to distribute tokens to all participants before trading begins. Despite this, active trading has already started in the premarket, creating a price premium and speculation.
On-chain analytics platform Spot On Chain highlighted a strategy being used by some investors. ICO participants have started shorting the token in premarket and plan to use their soon-to-be-distributed tokens to cover those shorts. This could result in low-risk gains estimated at 40%, with a potential $400,000 profit on a $1 million cap.
Bybit Faces Allocation Issues
Meanwhile, crypto exchange Bybit reported complications with token allocation during the public sale. The company blamed an unexpected API delay for an oversubscription problem, which caused some users to miss their allocations.
Bybit announced that affected users will receive full refunds. The platform is also in the process of verifying all final allocation data before unfreezing funds for users who attempted to subscribe.
The strong premarket demand and the rapid token sale have increased attention on the official launch. However, concerns about volatility remain, especially with traders looking to take advantage of arbitrage opportunities during the token distribution window.
