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Pump.fun co-founder Sapijiju has denied that the Solana memecoin launchpad cashed out $436 million after blockchain analytics firm Lookonchain flagged transfers of that amount in USDC to crypto exchange Kraken since mid-October.
Sapijiju called the characterization “complete misinformation,” saying the transfers were routine treasury management involving redistribution of funds from the project’s token sale to internal wallets, not sales to fiat currency.
“The USDC came from the $PUMP ICO and was redistributed to internal wallets purely as part of Pump.fun’s treasury management,”
Sapijiju wrote.
“This Pump.fun USDC withdrawal ensures the company’s runway can be reinvested into the business. Pump has never directly worked with Circle.”
Treasury management involves allocating, storing and moving project funds such as ICO proceeds, operating capital, or reserves to support ongoing operations. Wallet reorganizations and budget preparations often require Pump.fun USDC withdrawal activity but do not necessarily indicate selling.
Cointelegraph reached out to both Lookonchain and Pump.fun but had not received a response by publication.
Sapijiju’s statement followed a report that wallets linked to the Solana memecoin launchpad had transferred $436 million in USDC to Kraken since mid October. Many interpreted this Pump.fun USDC withdrawal as a potential large scale cash out.
The transfers coincided with Pump.fun’s monthly revenue dropping below $40 million for the first time since July falling to $27.3 million in November, according to DefiLlama. Despite the Pump.fun USDC withdrawal, data from DefiLlama, Arkham and Lookonchain show the Pump.fun tagged wallet still holds over $855 million in stablecoins and $211 million in Solana.
Nicolai Sondergaard, a research analyst at Nansen, suggested the Pump.fun USDC withdrawal could be perceived as a precursor to more selling although EmberCN clarified that the funds came from institutional private sales of the PUMP token instead of aggressive selling
Reactions to Sapijiju’s explanation were mixed. Some community members questioned the co-founder’s wording arguing that the Pump.fun USDC withdrawal raised more questions than it answered.
X user Voss commented,
“Definitely didn’t just contradict yourself on a post you had 10 hrs to respond to,”
referring to Sapijiju claiming the transfer wasn’t a sale while acknowledging treasury management.
Another user, EthSheepwhale, dismissed the announcement, criticizing what they called “price manipulation via airdrops” and noting that the token trades below its ICO price. CoinGecko data shows the PUMP token at $0.002714, down 32% from the ICO price of $0.004 and nearly 70% from its September high of $0.0085.
Some users were more sympathetic focusing on transparency rather than wallet flows.
Matty.Sol a user stated that,
“Pump.fun is entitled to use its revenue and ICO funds in any way it deems appropriate. Nothing wrong even if it’s true.”
Oga NFT added that moving USDC is standard after an ICO, and the critical question is whether USDC reserves fully back the circulating supply.
“This Pump.fun USDC withdrawal is normal for legitimate projects,” the user said.
While concerns about potential selling pressure remain, Sapijiju insists the Pump.fun USDC withdrawal was a normal treasury operation. The community continues to debate the need for clearer transparency and audit disclosures.
