PumpFun $PUMP Presale Has No Withdrawal Function, $500 Million Could Be Gone Forever

After the successful sale of the memecoin platform PumpFun to investors in an ICO recently, there was an issue when an influencer exposed that PumpFun’s $PUMP presale token did not have a $500 million withdrawal function.

According to Web2 platform @camolNFT, a X user who raised the issue, it is clear that the funds raised were not put into the Liquidity Pool (LP) as usual, but were instead locked in a Holding Contract, which cannot be transferred or updated.

But there are voices arguing that this news may be FUD. @camolNFT immediately hit back, saying that they had already checked using a method that he calls “JSON SQL SUGARTOWN ORA CORES SECURITY” and insisting that “this is not a hoax”.

Crypto community is confused! Many people are scared, shocked, and don’t dare to believe in the PumpFun project anymore.

Under the post, it became a debate field for both DeFi and traders. There were both confused voices, laughter, and repeated questions like, “Is this real?”

Investors are starting to worry that the $PUMP tokens in their wallets may be “fake”?

Some in X are even worried that the tokens held in their wallets may not have real value if the contract is locked and the funds cannot be withdrawn. Some users have even posted pictures of their wallets with strong captions such as “Are all the coins in my wallet fake!?”

So far, it seems that PumpFun still hasn’t found a solution.

At the moment, the PumpFun team has not released an official statement. The community is still divided into two sides: those who believe that there is a real design flaw, and those who think that this is just FUD or a misunderstanding of the Contact structure. Some people think that this may just be metadata, such as the coin name that cannot be edited, but it has nothing to do with the withdrawal function.

However, the point that many people agree on is that if this contract cannot be modified or updated, it means that the 500 million USD raised will be stuck in the Holding Contract forever.

PumpFun ($PUMP) is a new case in the crypto industry that a smart contract with a poor design can cause hundreds of millions of dollars to be lost from actual use forever.

Those who hold $PUMP now will have to wait for an official explanation from the development team whether there is a solution or if the money will really be “buried in the blockchain” forever.

What is PumpFum?

Pumpfun is a platform on the Solana Blockchain that allows anyone to easily launch a meme token without coding.

• There is a fair launch system that everyone can join.
• No hidden presales or airdrops.
• Tokens usually have a 1-hour time limit, if no one buys, the system will delete the tokens.

How Pumpfun works?

1. Create tokens easily with a few clicks
   Users can name their token, choose an image, write a description, and press create.
   The system will automatically generate token addresses, tokenomics, and pools.
2. Use Bonding Curve System
   Tokens are priced using a bonding curve model (prices increase as buyers buy and decrease as sellers sell)
   There is no order book or traditional AMM
3. “1 hour” mechanism
   When a token is created, if no one buys it within 1 hour, the token will be deleted by the system.
   If someone buys it, the token will enter the “launched” state and have the opportunity to grow further.
4. Income from mining
   Creators earn a portion of the fees from the trading of their tokens.
   The system incentivizes the creation of unique and minable tokens.

Highlights of Pump.fun

Prominent point	Details
Creating tokens is very easy	No need to write smart contracts yourself
No Rug Pull Easy	Control system by platform, no single owner of coin can sell out immediately
Use Solana for low fees	Make trading fast and cheap
Leaderboard system	Ranking successful tokens, helping to attract investors
Supports meme communities	Suitable for creating “Meme Culture” in the Web3 world

PumpFun’s $PUMP Presale Summary

PumpFun is facing backlash after it was revealed that the $PUMP tokens from the presale did not have a withdrawal function, meaning that over $500 million could be “lost forever.”
A user named @camolNFT on the X platform stated that the funds were not put into a liquidity pool, but rather locked in a holding contract that could not be updated or transferred.
While some see it as FUD, @camolNFT insists that it was verified using specialized techniques.
The crypto community is confused, with some believing less about the project and worried that the tokens they hold may not have real value.
Many are asking the question, “Are the coins in my wallet fake?”
The PumpFun team has yet to make an official statement.
The community is still debating the veracity of the issue.
Some think it may just be metadata and unrelated to the withdrawal system.
The situation is still unclear, and investors should monitor it closely.
This incident could affect confidence in the project and the meme token market as a whole.

Reference: Verster Community

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