- Pump.fun co-founder responds to Lookonchain’s report of large USDC movements to Kraken.
- After initial price weakness due to traders’ uncertainty, the PUMP token recovers.
Sapijiju, the co-founder of Pump.fun, denied the latest allegations of the project cashing out over $436 million in USDC stablecoins. The pseudonymous co-founder dismissed claims from blockchain analytics platform Lookonchain, calling it “complete misinformation.”
In a statement posted on X, Sapijiju said the USDC transfers referenced in the report were not sales. Instead, he referred to them as a movement of funds tied to the Initial Coin Offering (ICO). The co-founder clarified that the transactions represented routine internal treasury management and redistribution across company wallets rather than any liquidation event. In a message on the X platform, Sapijiju noted:
“What’s happening is a part of Pump’s treasury management, where USDC from the $PUMP ICO has been transferred into different wallets so the company’s runway can be reinvested into the business. Pump has never directly worked with Circle.”
Pump.Fun Fund Movement Triggers Fears of Selling Pressure
Sapijiju’s response and clarification come after a Lookonchain alleged that wallets tied to the Solana-based memecoin platform had transferred $436 million in USDC to Kraken since mid-October. Many players in the crypto space correlated this activity with cashing out.
The transfers occurred as Pump’s monthly revenue dropped below $40 million for the first time since July, falling to $27.3 million in November, according to DefiLlama. However, data from DefiLlama, Arkham, and Lookonchain indicated that the Pump.fun-linked wallet continued to hold over $855 million in stablecoins and $211 million worth of Solana.
Crypto market experts have given mixed reactions to these fund movements. Nansen research analyst Nicolai Sondergaard said the transfers appeared to signal preparation for additional selling. On the other hand, on-chain researcher EmberCN noted that the funds originated from institutional private placements of the PUMP token rather than active selling.
PUMP Token Recovers From Selling Pressure
Following yesterday’s fall, the PUMP token has recovered 2% today, along with the broader crypto market, following the co-founder’s clarification. As of press time, the PUMP token was trading at $0.002714, down 77% from its July peak of $0.01214.
Popular crypto trader ZeroOnChain noted that the PUMP token price chart forms a potential reverse head-and-shoulders pattern. The analyst added that a confirmed breakout above resistance, followed by a successful retest, would be needed before considering a long position. Based on the setup, the projected upside target is approximately $0.0035.
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