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The $PUMP token sale on Pump.fun has quickly shifted from headline success to community frustration.
Despite raising $600 million in just 12 minutes on July 12, the Solana-based memecoin launchpad is now under fire for what many see as a mishandled distribution and poor communication from supporting exchanges like Bybit and Kraken.
Bybit’s oversubscription glitch and community fallout
Bybit, one of the main platforms hosting the sale, cited an “unexpected API delay” as the reason for oversubscription.
In a post on X, the exchange clarified that some users successfully received allocations while others were left with frozen funds.
Those left out would be refunded in full, Bybit said.
Still, the damage was done. Screenshots flooded social media showing failed transactions, and frustrated users called out the exchange’s handling of the situation.
To make amends, Bybit offered a $20 “Spot fee saver” voucher, which only added fuel to the fire.
Some users reported substantial locked funds, leading to criticism that the response was not proportional.
Later, Bybit confirmed that all successful subscribers had received their allocations, but the community wasn’t fully convinced.
One user, @DadModeGG, questioned the platform’s transparency, demanding explanations about how allocation decisions were made.
Kraken's own glitch, Hyperliquid’s alternative, and the bigger picture
Meanwhile, Kraken faced its own technical issues during the token sale.
According to co-founder Arjun Sethi, connection problems led to valid orders being refunded while late ones went through.
To recover user trust, Kraken promised an airdrop of PUMP tokens for those affected, a move that was received more positively than Bybit’s voucher offering.
Interestingly, Hyperliquid stepped in earlier with prePerps for PUMP, allowing leveraged exposure before launch.
It reportedly saw over $21 million in volume, showing what some viewed as a more agile approach compared to traditional exchanges.
Pump.fun, for its part, remains relatively quiet amid the chaos, aside from confirming an upcoming airdrop and adhering to MiCA regulations by excluding users in the U.S., U.K., and EU.
Regardless of that, the platform reputation has also taken a hit due to its contradictory stance.
Co-founder Alon Cohen once labeled presales as scams, yet the platform partnered with centralized exchanges like Bybit, Kraken, and KuCoin.
With token distribution ongoing and trading expected to start by July 16, many in the community are waiting to see whether PUMP can rebound from its rocky start, or whether the saga continues.
