Dump is informal language for selling a large amount of an asset, selling it aggressively, or describing a sharp price decline. “The market dumped” describes observed price action, whereas “a holder dumped tokens” makes a claim about someone’s selling behavior.
Selling and its market impact
A large sale can consume available buy orders and move execution to lower prices. The impact depends on liquidity and order placement, not just the number of tokens sold. A large transaction in a deep market may have less effect than a smaller one in a thin market.
A transfer from a wallet to an exchange does not, by itself, prove a sale. The funds could be moved for custody, collateral or another purpose. Trading evidence is needed before attributing a decline to a particular holder.
Ordinary selling or manipulation
A dump can result from profit-taking, risk reduction or forced liquidation. It is also the selling phase of a pump-and-dump scheme, where promoters exit after encouraging others to buy.
The word alone does not prove deception or coordinated action. Nor does a steep decline establish that selling has finished: prices may stabilize, rebound or continue falling.