Pump.fun, the Solana-based memecoin launchpad, has come under intense scrutiny following a recent revelation of the transfer of more than $436 million in USDC to the Kraken cryptocurrency exchange.
The movement, occurring since mid-October, has fueled speculation about potential cash-outs amid a wider slowdown in memecoin trading and a recent market downturn.
Questions over the USDC movements
According to blockchain analytics from Lookonchain, Pump.fun has deposited $436.5 million in USDC into Kraken since October 15, coinciding with a dramatic $19 billion market crash that weakened liquidity and dampened trading activity across the sector.
On-chain observers quickly interpreted these movements as a potential precursor to major sell-offs, raising concerns among investors and retail traders alike.
In response, Pump.fun representatives, including Sapijiju on Twitter, have firmly denied the claims of cashing out.
Sapijiju has clarified that $0 had been sold, and that they have no direct involvement with Circle, a claim made in public reports suggesting the transfers were linked to broader stablecoin movements between Kraken and Circle.
Instead, Sapijiju describes the activity as part of a strategic reallocation of treasury funds, moving USDC from the PUMP ICO into various wallets to maintain operational runway and support reinvestment into the business.
complete misinformation from @lookonchain again. $0 have been cashed out – we’re not involved in the transactions between Kraken and Circle that you’re alleging us to be a part of.
What’s happening is a part of pump’s treasury management, where USDC from the $PUMP ICO has been
Pump.fun revenue under pressure
The stablecoin transfers come at a time when Pump.fun’s revenue has sharply declined.
Following the October crash, the platform reported revenues of $27.3 million in November, marking a 53% drop from September’s $58.9 million.
This decline represents the first monthly revenue below $40 million since July and reflects a broader slowdown in the speculative Solana memecoin market.
Retail investors have grown increasingly cautious after repeated losses in high-risk meme token launches, contributing to the subdued trading activity that has affected the platform’s performance.
But despite the decline, Pump.fun continues to maintain a significant treasury.
Latest data indicates that the platform holds approximately $855 million in stablecoins and $211 million in Solana tokens, giving it more than $1 billion in liquid and semi-liquid assets.
But while this substantial reserve positions Pump.fun to support further investments or buybacks, it also means that any additional large-scale transfers could be misinterpreted by the market, potentially triggering anxiety or negative sentiment among traders.
PUMP token price rise
Following Sapijiju’s clarification, Pump.fun’s PUMP token price has soared to $0.002723 after dropping to an intraday low of $0.002491 following Lookonchain’s revelation earlier today.
At press time, the PUMP token was up 7% compared to its previous day’s close.
As Pump.fun continues its operations, including AI-driven trading in Mayhem Mode, acquisitions of platforms such as Padre Trading, and the wallet tracker app Kolscan, investor focus will likely remain on both the stability of the platform’s treasury and the revival of memecoin trading volumes.
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