Pump.fun Co-Founder Denies $436 Million Payout Claims, Citing Internal Transfers
Pump.fun’s pseudonymous co-founder Sapijiju has responded to claims that the Solana-based memecoin platform has paid out over $436 million in USDC, describing the allegations as “complete misinformation” spread by blockchain analytics firm Lookonchain. The controversy surrounding the supposed massive withdrawal has sparked a heated debate among analysts and community members, with some interpreting the on-chain data as a significant liquidation.
Claims of Misinformation and Internal Transfers
According to Sapijiju, the USDC in question originated from the initial coin offering (ICO) of the PUMP token and was redistributed to internal wallets to meet the company’s operational needs. He explained that the transfers were part of Pump.fun’s financial management, stating, “What is happening is part of Pump’s financial management. USDC from the $PUMP ICO was transferred to various wallets, allowing the company’s runway to be reinvested into the business.” Sapijiju emphasized that Pump.fun has never worked directly with Circle, the issuer of USDC.
Treasury Management and On-Chain Data
Treasury management typically involves repositioning funds used for operations, reserves, or development, which does not necessarily signal selling pressure. On-chain data from DefiLlama, Arkham, and Lookonchain shows that wallets marked with Pump.fun continue to hold over $855 million in stablecoins and approximately $211 million in Solana (SOL), suggesting that the project has a sizable treasury. However, DefiLlama reported that Pump.fun’s monthly revenue fell to $27.3 million in November, falling below $40 million for the first time since July.
Community Reaction and Debate
Analysts and community members are divided over Sapijiju’s explanation. Nansen’s Nicolai Søndergaard argued that the transfers could be a precursor to further sales, while blockchain researcher EmberCN countered that the funds came from institutional private placements of the PUMP token rather than active dumping. The debate quickly spread to the community, with some users questioning the clarity of Sapijiju’s statement and pointing out inconsistencies in his wording.
Some users, like Voss, argued that Sapijiju’s statement was contradictory, stating, “We are not involved in the transactions between Kraken and Circle in which you allegedly implicated us.” Others, like EthSheepwhale, rejected the statement entirely, accusing the project of poor token execution and “price manipulation through airdrops,” noting that PUMP is trading 32% below its ICO price of $0.002714 and nearly 70% below its September peak price.
Pump.fun’s Acquisition of Kolscan
In July, Pump.fun announced the acquisition of wallet tracking tool Kolscan, aiming to revolutionize on-chain trading. The integration brings together Kolscan’s analytics with Pump.fun’s social trading capabilities, improving transparency, wallet tracking, and copy trading capabilities. Co-founder Alon Cohen emphasized that trading is a “social sport” and highlighted the importance of community and sharing insights for success within the ecosystem.
Under the agreement, all Kolscan services are provided to users free of charge. Having already attracted tens of thousands of users, Pump.fun aims to build a scalable crypto social media platform while leveraging Kolscan’s tools to grow its community and influence. For more information, visit https://cryptonews.com/news/pump-fun-co-founder-denies-436m-cash-out-claims-cites-internal-transfers/
