Pump.fun announced the acquisition of a leading multi-chain trading terminal to further expand its ecosystem, triggering a 10% price surge for the platform’s token, PUMP.
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Pump.fun Acquires Padre
On Friday, Solana’s leading launchpad, Pump.fun, announced it had acquired multichain trading terminal Padre for an undisclosed amount as part of its “mission to tokenize the world’s highest-potential opportunities.”
The platform explained that trading terminals have “captured most trading volumes in the ecosystem” for the past year. Therefore, the acquisition of Padre, which supports trading across Ethereum, Solana, BNB Chain, and Base, “was a no-brainer,” Pump.fun’s co-founder Alon Cohen affirmed.
“Today marks another historic day for the PUMP ecosystem. What we’re known for is innovating, growing the market as a whole and creating the most retail-friendly products,” Cohen wrote on X.
“But we have always wanted to find more ways to support and reward our existing, loyal user base, most of which uses pro trading terminals,” he continued, adding that “the Padre team has shown the most grit, execution capability and integrity out of any crypto team I have gotten to know.”
According to the official announcement, Padre will function as usual, but users will experience significant upgrades in user experience, especially for tokens launched on Pump.fun. Additionally, the integration will improve data and speed, and offer better trading incentives.
PUMP Breaks Out Of Bearish Structure
Following the news, Pump.fun’s token, PUMP, became one of the best-performing tokens in the past 24 hours, jumping 11.6% to a one-week high of $0.0043. The cryptocurrency has been trading within the $0.0036-$0.0046 price range since the early October correction.
Analyst Sjuul from AltCryptoGems noted that yesterday, PUMP was “in a bit of trouble” after retesting the range lows, needing to break out of a bearish structure to prevent a breakdown to lower levels.
After today’s rally, PUMP “finally broke that structure,” suggesting that the range high should be the next target for the cryptocurrency’s price.
A potential breakout from this range could set the stage for a retest of the $0.005 mark, a key support and resistance level during the Q3 rally that was lost during the October 10 pullback.
PADRE Crash Drives Community Backlash
Despite the PUMP rally, Pump.fun received some backlash after the acquisition. Padre’s users slammed the memecoin launchpad for one of the key changes listed in the announcement.
According to the official X post, trading terminal’s token, PADRE, “will no longer have utility on the platform with no further plans for the future.” As a result, the cryptocurrency dropped 76% in an hour to a multi-month low of $0.009 before stabilizing at around $0.0139.
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A user criticized the decision, affirming that “when you acquire a product that has been on the market for more than a year, (…) it would be really wise to take into account people that have invested into the token as well.”
The user considers that “posting a statement that renders the token absolutely useless and sunsetting it in this way is atrocious,” suggesting that the Pump.fun team should have taken a snapshot and announced an airdrop for PADRE holders.
Featured Image from Unsplash.com, Chart from TradingView.com