The value of PUMP has taken a hit after its co-founder Alon Cohen disclosed during an interview that the eagerly awaited airdrop will not occur in the near future. This news sparked a wave of panic among investors, leading to significant sell-offs just as Bitcoin struggles to maintain a position above $117,000.

Altcoins are experiencing a downturn as well, with XRP down 12%, Solana falling by 8%, and Ethereum slightly better off with only a 3% dip.

Within hours of Cohen’s remarks, two significant investor wallets sold off a total of 1.25 billion PUMP tokens, valued at approximately $3.81 million at an average price of $0.00305. Data from on-chain analysis indicates that these large holders incurred losses exceeding $1.19 million.

“2 wallets (likely private sale investors) sold 1.25B $PUMP ($3.81M) at $0.00305 in the last 2 hours, losing $1.19M.” - Lookonchain, July 24, 2025

This significant sell-off erased recent gains after PUMP had reached a brief low around $0.0036 earlier this week. Currently, the token has plummeted by more than 24% in the last 24 hours and is nearly 56% below its all-time high.

Pump Crypto Faces Backlash as Airdrop Delay Erodes Community Trust

Community frustration mounts as Pump.fun suspends information regarding the promised airdrop from its record-breaking $600 million ICO. While Cohen confirmed that an airdrop will eventually take place, he emphasized the team’s commitment to long-term ecosystem growth over immediate token distribution.

“We want to ensure that it is a meaningful airdrop and it is executed well. That being said, the airdrop is not going to be taking place in the immediate future.”

This controversial postponement raises questions, as the delay undermines trust. Promising an airdrop initially aimed to reward early supporters, and the indefinite hold risks facilitating airdrop farming and erodes confidence among loyal users.

Despite being a leader in Solana’s token landscape, generating $774 million in revenue and launching over 12 million tokens, PUMP could face ongoing challenges unless the team regains trust and fulfills its promises. New competitors like LetsBonk are gaining popularity, presenting additional pressure.