Pump.fun Co-Founder Refutes $436 Million Cash-Out Allegations, Addresses Internal Transfers

In a recent turn of events, Sapijiju, the pseudonymous co-founder of Pump.fun, has publicly denied accusations that the Solana-based memecoin platform liquidated over $436 million in USDC. He referred to these claims as “complete misinformation” propagated by the blockchain analytics firm Lookonchain.

Key Takeaways

The co-founder of Pump.fun denies assertions regarding a $436 million cash-out, explaining that the USDC transfers were routine treasury operations.
Current on-chain data indicates that Pump.fun maintains over $855 million in stablecoins and $211 million in SOL.
There is a divide among analysts and community members on the legitimacy of the claims.

The controversy ignited earlier this week when Lookonchain reported that wallets associated with Pump.fun transferred hundreds of millions of dollars in stablecoins to the cryptocurrency exchange Kraken since mid-October, a movement interpreted by many as a substantial liquidation.

Pump.fun Co-Founder Refutes $436 Million Cash-Out Allegations, Addresses Internal Transfers

Clarifying the $436 Million Transfers: Treasury Movements, Not Sales

In a comprehensive post on X, Sapijiju contested the portrayal of the transfers, asserting they were not sales but standard treasury movements.

He clarified that the USDC in question originated from the PUMP token's initial coin offering (ICO) and was allocated across various internal wallets to satisfy the company's operational requirements and cash flow.

“What’s taking place is part of Pump’s treasury management,” he stated. “USDC from the $PUMP ICO has been redistributed to different wallets to reinvest the company’s funds back into the business. Pump has never directly engaged with Circle.”

Treasury management usually encompasses reallocating funds used for day-to-day operations, reserves, or other developments, which does not inherently indicate selling pressure.

Data from DefiLlama indicates that Pump.fun's monthly revenue dipped to $27.3 million in November, marking a decline below $40 million for the first time since July.

Nonetheless, on-chain metrics from DefiLlama, Arkham, and Lookonchain reveal that wallets tagged with Pump.fun still hold over $855 million in stablecoins and approximately $211 million worth of Solana (SOL), implying that the project still enjoys a healthy treasury.

Analysts and community members are divided on this explanation. Nicolai Søndergaard from Nansen suggested that these transfers could indicate potential selling pressure, whereas blockchain researcher EmberCN argued that the funds resulted from institutional private placements of the PUMP token, rather than active offloading.

This discussion quickly unfolded within the community. Some users remarked that Sapijiju's statement was unclear, noting inconsistencies in his wording.

X user Voss pointed out that the co-founder could not assert that Pump.fun had no role in the transfers while concurrently labeling them as treasury management.

Others completely dismissed the explanation, with one user, EthSheepwhale, accusing the project of ineffective token management and “price manipulation via airdrops,” highlighting that PUMP is currently trading at $0.002714, which is 32% lower than its ICO price and almost 70% below its peak in September.

Pump.fun's Acquisition of Kolscan

In July, Pump.fun disclosed its acquisition of the wallet tracking platform Kolscan, intending to innovate the on-chain trading landscape.

This integration will combine Kolscan’s analytical prowess with Pump.fun’s social trading functionalities, improving transparency, wallet tracking, and copy-trading services.

Co-founder Alon Cohen emphasized that trading is essentially a “social sport,” underlining the significance of community and shared experiences in fostering success within the ecosystem.

As part of this agreement, all Kolscan services will be available to users free of charge.

Pump.fun has already attracted tens of thousands of users and aims to develop a scalable cryptocurrency social media platform that leverages Kolscan’s tools to expand its community and influence.