Pump Token Surges Premarket Following Pump.fun $600M Raise

Following Pump’fun’s public token sale, which sold out in minutes, the Pump token has spiked by 16% in premarket trading. As investors eye the start of trading, Bybit is blaming the meme coin launchpad’s API delay for causing an oversubscription to the offering.

Pump Token Spikes Ahead Of Official Trading Launch

According to exchange data from Hyperliquid’s perpetuals market, Pump.fun’s PUMP token has surged by 16% over the last day in a rally driven by its initial coin offering (ICO). At press time, the Pump token is exchanging hands at $0.006725 in premarket with investors jostling for positions ahead of the trading launch.

Previously, the team announced the Pump.fun public token sale, offering 12.5% of the total supply to investors. Barely 12 minutes after the public sale launch, investors snapped up all the Pump tokens at $0.004, raising $500 million on-chain and an additional $100 million from centralized exchanges.

Before the PUMP token ICO, the platform had already stated that the token wouldn’t be tradable until 48 to 72 hours after the public sale ends. The platform also confirmed in a recent announcement that it will use this window to distribute the tokens to the ICO participants.

Amid the premarket buzz, concerns persist about a potential price correction upon the full trading launch. According to the on-chain analytics platform Spot On Chain, traders can short the token and, upon distribution, use it to close their short position, netting a low-risk gain.

“For ICO participants, they can make 40% by going short on pre-market now and close when receiving the token,” said Spot On Chain. “With the cap at $1M, they cqan make $400K with low risk.”

Bybit Blames API For Oversubscription

Bybit revealed in an official statement that the Pump.fun token was oversubscribed by users of the centralized exchange. The top crypto exchange blamed “an unexpected API delay” for the oversubscription of the offering, leading to some users failing to receive their allocations.

Going forward, Bybit says it will fully refund users that are yet to receive their allocations due to the API delay. In the meantime, the exchange is verifying final allocation outcomes to unfreeze funds from users who attempted to subscribe to the offering.