While most of the crypto market experienced a bullish rally, PumpBTC unexpectedly plunged 40%, a sharp decline that caught many investors off guard, especially amid positive listing news.
On Wednesday, April 23, PumpBTC, a DeFi token that recently launched on Binance, crashed 40% in 24 hours with no immediate news-based catalysts. The 40% crash came despite recent positive listing news. The same day of the crash, BingX listed the PumpBTC token on its spot crypto exchange. What is more, just one day prior, Korean crypto exchange Bithum also listed the token.
The likely reason for the correction is that traders, or the team, are taking profits after PumpBTC’s major rally since its launch in early April.
Binance listing hypes up PumpBTC traders
PumpBTC launched Binance Wallet on April 1, as one of Binance’s exclusive token generation events. The TGE was oversubscribed 247 times, with investors pledging 307,187 BNB, compared to the modest target of 1239.52 BNB.
Still, the hype resulted in a sudden crash after listing, with the token losing 60% as early investors took profits. Despite this, the token continued to rise in April, posting a 7.5x return on investment by April 21. Still, the speculative and hype-driven nature of such listings means that corrections may be inevitable.
PumpBTC is a DeFi protocol that claims it uses AI to find the best liquidity and staking opportunities across decentralized exchanges and pools. The platform also offers exposure to BTC-denominated staking returns, a product that recently became popular.
“Bitcoin staking” refers to investment products that track the price of Bitcoin, while also offering staking yields. As Bitcoin doesn’t natively give yields, BTC staking yields typically come from investment returns in DeFi markets. Other projects offering a similar service include Babylon Genesis and Solv Protocol.
