STONK drops 50% after announcement of stock trading on Pump.fun

The price of STONK is tumbling by around 50% after it emerged that Pump.fun plans to add stock trading to its platform. Investors fear that the popular meme coin launchpad will thus become a direct competitor to STONK, which focuses on trading stocks through crypto. The question now is whether STONK can defend its position or lose further ground.

In brief:

• STONK loses about 50% of its value following the news about Pump.fun’s plans for stock trading.
• Similar to the price drop of PONS when Uniswap and other platforms launched their own launchpads.
• PONS eventually recovered and subsequently rose by 50x.

Panic selling after Pump.fun announcement

As soon as it leaked that Pump.fun wants to introduce stock pairs, the market immediately went into a tailspin. The chart shows that STONK lost over $103 million in market value within eighteen hours, a decline of 55.51%. Trading volume over that period stood at $18.15 million.

The reaction is reminiscent of what happened earlier with PONS. When Uniswap and other platforms launched their own launchpads, investors responded with similar panic selling. PONS, however, managed to hold on to its market share and subsequently rose by a factor of fifty.

Who will win the battle for stock trading in crypto?

Analyst onchainmo does not expect STONK to give up its position without a fight. In his view, it will take some time before it becomes clear which platform ultimately gains the upper hand in this segment. He thus questions the sharp market reaction.

Whether history will repeat itself and STONK proves just as resilient as PONS did back then remains unclear for now. Pump.fun has shown it can scale quickly, but an established community and existing market share may give STONK an edge.