Pump.fun Wallets Dump $10M in Tokens as Buybacks Fail to Stop Price Drop

Key Insights:

• Pump.fun wallets executed a systematic six-day liquidation, selling $10 million in $PUMP tokens between Feb. 16 and 22.
• The first sale on Feb. 16 realized a $2.48 million loss, showing desperation as Pump.fun revenue collapsed 75%.
• The platform burns $1 million daily in buybacks, while users who paid $935 million in fees got no airdrop.

Pump.fun-linked wallets sold $10 million worth of $PUMP tokens over six days, from Feb. 16 to Feb. 22, 2026, in a systematic liquidation pattern. The $PUMP token price fell to the $0.00189-$0.00202 range on Feb. 23. It was down roughly 10%, as each sale exerted downward pressure.

Meanwhile, the Pump.fun platform simultaneously spent $1 million daily buying back tokens from the market using revenue from user fees. This creates a strange situation in which the platform defends its price while wallets connected to it extract millions. The timing raises questions about what these wallet holders know that regular users do not.

Six-Day PUMP Selling Pattern Shows Coordinated Exit

Sales began on Feb. 16, when the wallet identified as 77DsB sold 543 million $PUMP tokens for $1.2 million USDC. This first sale represented a $2.48 million realized loss from the original cost basis the wallet received seven months earlier in mid-2025.

Selling at a loss shows desperation, not profit-taking. Someone willing to accept millions in losses must know worse conditions are ahead.

Extended PUMP Selling | Source: X

Sales escalated on Feb. 19 when the same wallet offloaded 2.07 billion $PUMP for $4.55 million USDC. Then came a major acceleration on Feb. 20-21, selling 3.376 billion tokens for $7.23 million over two days.

The transactions happened in staggered waves of 14.3 to 14.4 million tokens each rather than a single massive dump. This technique minimizes market impact and slippage, allowing better exit prices.

By Feb. 22, the wallet completed the final liquidation of its remaining position. Related wallet GpCfm transferred 1.21 billion PUMP worth $2.57 million to the Bitget exchange. Total combined selling reached approximately $10.5 million across the six-day period. Each sale correlated with $PUMP token price drops as supply overwhelmed demand.

Dump Started Late January | Source: X

The timing matters because the major unlock event approaches July 12, 2026. This unlock releases 41 to 82.5 billion additional $PUMP tokens into circulation.

The current circulating supply cannot absorb that flood without severe price damage. Pump.fun-linked wallets appear to exit before this dilution event, suggesting they understand the token cannot maintain current levels.

$1M PUMP Buybacks Fail to Offset Desperate Selling

The Pump.fun platform operates a buyback program using approximately 98% to 100% of revenue. Cumulative buybacks reached $295 to $301 million, with recent daily burns around $1 million. Feb. 20-21 examples showed $1.3 million and $270,000 daily buyback amounts. This program reduced the circulating supply by 14% to 25% historically, creating a scarcity floor.

Pump.fun Ecosystem Buys | Source: X

However, the buybacks could not stop the price decline during the six-day selling period. The platform burns $1 million daily, while linked wallets have extracted $10 million in total. The selling overwhelmed the buying, creating net negative pressure. $PUMP token broke the $0.0020 support level, testing December 2025 lows near $0.001678.

The first sale, accepting a $2.48 million loss, reveals critical information. Nobody sells at a multi-million-dollar loss unless forced by circumstance or knowing worse is ahead.

Platform revenue collapsed 75% year-over-year, from daily peaks of over $7 million in 2025 to $1 to $1.5 million in early 2026. January 2026 monthly fees totaled only $31.8 million. Declining revenue means smaller buybacks ahead, providing less price support.

Revenue Collapse and Dilution Trigger Exits

Users who paid $935 million in lifetime Pump.fun platform fees received zero airdrop, while linked wallets systematically extracted $10 million in February alone. This represents fundamental unfairness: people who funded the platform through usage got nothing, while wallets connected to the platform took millions.

The platform launched tokens that failed 98.6% of the time. Most projects on Pump.fun are pump-and-dump schemes or outright rugs where creators abandon projects after taking money.

The platform faces a $500 million lawsuit filed in January 2025, alleging it facilitated pump-and-dump securities violations. Now the $PUMP token itself shows a similar pattern, with linked wallets dumping on holders.

The combination of collapsing revenue, an upcoming massive unlock, and legal pressure creates perfect exit conditions. Pump.fun wallets chose to exit now because waiting means worse prices. July unlocks the market with tokens.

A lawsuit could force operational changes. Revenue decline continues, reducing buyback support. All factors point down, making February the logical exit window for anyone with inside knowledge of the platform’s situation and future prospects.

The post Pump.fun Wallets Dump $10M in Tokens as Buybacks Fail to Stop Price Drop appeared first on The Coin Republic.