Whales have begun shorting the new PUMP token by Pump.fun on Hyperliquid, ahead of its launch. Two major players have opened limited leverage positions.
Analysis of Initial Shorting of PUMP
Shorting of the PUMP token has begun on Hyperliquid, expected to arrive in wallets from July 15. The platform launched a PUMP-USD futures market at users' request, allowing up to 3x leverage. Two major players made deposits and opened short positions, anticipating volatility.
PUMP-USD Market and Volatility
Hyperliquid is anticipating high volatility and low liquidity in the initial PUMP markets. Following the token launch, the platform will switch the pair to conventional perpetual futures. In the first hours of trading, PUMP traded at approximately $0.005, higher than its pre-sale price. If too many players short the token, it may lead to favorable funding for long positions.
Exchange Announcements and Trading Aspects of PUMP
Binance has also announced its own perpetual futures market for PUMP, offering up to 5x leverage. The current market remains extremely chaotic, with high funding rates for shorts. KuCoin has implemented direct token purchases capped at $1M per user, with subscriptions filling within hours.
Trading of the new PUMP token on Hyperliquid and other exchanges begins amid high expectations and significant volatility. Investors should be cautious regarding risks associated with early shorting and liquidity factors.
