The Pump.Fun platform, a meme coin star on Solana, has stirred controversy by moving over $436 million in USDC since mid-October, causing a sharp drop in the PUMP token. Amidst silence and huge fund transfers, investors wonder: prudent cash management or an exit strategy?
On-chain data reveals intense financial activity surrounding Pump.Fun in recent weeks. Crypto analyst EmberCN has highlighted massive movements. $405 million in USDC was deposited on Kraken in just one week. In parallel, $466 million was transferred from Kraken to Circle, the issuer of USDC.
According to Arkham, the total reaches $436.5 million in USDC moved since October 15th. For EmberCN, this is clearly a “cash-out operation” orchestrated by the project’s team. Given the scale and speed of the transactions.
These funds reportedly originate directly from the private sale of PUMP tokens conducted in June with institutional investors. As a reminder, Pump.Fun had raised $500 million in less than 12 minutes during its July ICO, a record at the time.
The team’s complete silence for over a week intensifies concerns. No official explanation has been provided regarding these transfers. Leaving the community in the dark and fueling increasingly grim speculation about the project’s future.
The PUMP token is collapsing, losing 24% in one week and another 4% over 24 hours, dropping to $0.0026, below the private sale price of $0.004. Breaking through this psychological threshold reinforces bearish sentiment. Institutional investors are now in the red, confidence is plummeting, and selling pressure is accelerating.
Meanwhile, revelations about financial movements are worrying the community. Pump.Fun allegedly converted 4.19 million SOL ($757 million) into stablecoins and moved enormous volumes of USDC, fueling fears of a rug pull despite the technically legitimate origin of the funds. The team’s lack of communication only intensifies distrust.
In an attempt to revive activity, the project launched Mayhem Mode, an AI tool designed to facilitate the creation of meme coins on Solana. But the impact remains weak: Daily launches increased by only 3%, rising from 17,300 to 17,800 according to The Block. This growth is insufficient in the face of massive withdrawals, the token’s collapse, and the climate of suspicion now weighing on Pump.Fun.
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