Pump.fun co-founder denies $436M cash out, claims it was ‘treasury management’
Analysis
Price Impact
MedThe co-founder's denial of a $436m cash-out aims to mitigate fears of a large sell-off. while it attempts to counter negative sentiment, the sheer volume of funds and existing community skepticism mean the impact is not entirely positive, nor fully neutral.
Trustworthiness
LowThe denial comes from a pseudonymous co-founder and is met with skepticism from parts of the community, who point out contradictions. blockchain analytics firms initially reported the movements, and the explanation lacks independent verification or detailed proof.
Price Direction
NeutralThe pump token is already significantly down from its ico and september high. the denial seeks to prevent further bearish pressure by clarifying fund movements as treasury management. however, community skepticism and current price action suggest a lack of strong bullish momentum, leading to a neutral outlook unless more concrete evidence is provided.
Time Effect
ShortThe denial addresses immediate fud (fear, uncertainty, doubt) surrounding the reported transfers. the long-term price effect will depend on pump.fun's future actions, transparency, and whether the 'treasury management' claims are substantiated over time.
Original Article:
Article Content:
Ezra Reguerra 3 minutes ago Pump.fun co-founder denies $436M cash out, claims it was ‘treasury management’ The Pump.fun co-founder disputed claims of a massive off-ramp and says Pump.fun’s USDC shifts were routine treasury operations. Listen 0:00 37 News COINTELEGRAPH IN YOUR SOCIAL FEED Pseudonymous Pump.fun co-founder Sapijiju rejected claims that the project cashed out more than $436 million in stablecoins, calling the allegations “complete misinformation” from the blockchain analytics firm Lookonchain. In an X post, Sapijiju addressed the report, insisting that none of the transferred funds were sold. He said the USDC originated from the PUMP token’s initial coin offering (ICO) and was simply redistributed to internal wallets as part of the company’s treasury management process. “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,” Sapijiju. “Pump has never directly worked with Circle.” Treasury management happens when a project allocates, stores and moves its funds, such as operating capital, ICO proceeds or reserves, to ensure it can continue running. The transfers don’t necessarily indicate selling and can simply involve wallet reorganization and preparing budgets for future developments. Cointelegraph reached out to Lookonchain and Pump.fun, but had not received a response by publication. Source: Sapijiju Fund movement sparked fears of selling pressure Sapijiju’s comments came after Lookonchain reported that wallets linked to the Solana memecoin launchpad had moved $436 million in USDC to the crypto exchange Kraken since mid-October, which was widely interpreted as a large-scale cash-out. The fund movements coincided with Pump’s monthly revenue falling below $40 million for the first time since July, declining to $27.3 million in November, according to DefiLlama data. Despite this, data platforms DefiLlama, Arkham and Lookonchain showed that the Pump.fun-tagged wallet still holds over $855 million in stablecoins and $211 million in Solana ( SOL ). Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, interpreted the perceived sell-off as a precursor to further selling. However, EmberCN said that the funds originated from institutional private placements of the PUMP token, rather than active dumping. Source: Lookonchain Related: Memecoin market sinks to 2025 low as $5B wiped out in a day Community split between skepticism, defense and calls for audits The community’s response to Sapijiju’s explanation was divided. Some argued that the wording raised more questions, while others supported Pump.fun’s right to manage its own treasury. X user Voss stated that there were contradictions in the statement, as the co-founder claimed it wasn’t involved in the transfer while also stating that they were managing their treasury. “Definitely didn’t just contradict yourself on a post you had 10 hrs to respond to,” Voss wrote . Another community member, with the handle EthSheepwhale, dismissed Sapijiju’s announcement entirely and criticized what they described as “price manipulation via airdrops” and poor execution that left the token trading below its offering price. CoinGecko data showed that the PUMP token trades at $0.002714, down 32% from its ICO price of $0.004. The token is also down by nearly 70% from its September high of $0.0085. Pump.fun price chart. Source: CoinGecko Meanwhile, some community members offered more sympathy while saying that the real issue lies beyond wallet flows and into transparency about reserves. User Matty.Sol said that Pump.fun had the right to deploy its revenue and ICO proceeds however it chose. “Nothing wrong even if it’s true. It’s your own revenue tho,” Matty wrote . User Oga NFT said that moving USDC is what legitimate projects do after an ICO, and the key question is whether USDC reserves truly back the circulating supply. Magazine: Bitcoin whale Metaplanet ‘underwater’ but eyeing more BTC: Asia Express # Blockchain # Cryptocurrencies # Altcoins # Data # Solana # Memecoin Add reaction