Pump.fun has denied claims of a $436M cash out and says that the transfers were part of routine treasury management.
The Strategy behind Pump.fun’s recent fund movements has become a major talking point across the Solana space.
A recent report claimed that the team moved hundreds of millions in stablecoins to an exchange. In an X post, Sapijiju, the Pump.fun cofounder rejected that idea and said the movements were part of normal treasury operations.
The back and forth thus created debate and left the community searching for clearer answers.
Strategy Explanation From the Pump.fun Team
Sapijiju pushed back against claims that the team cashed out $436 million. The comments followed a report from Lookonchain, which flagged a large amount of USDC moving from wallets tied to the project to Kraken.
Sapijiju said none of the transferred funds were sold. He explained that the USDC came from the PUMP token’s initial coin offering. The team moved it between internal wallets to support regular treasury organization.
complete misinformation from @lookonchain again. $0 have been cashed out – we’re not involved in the transactions between Kraken and Circle that you’re alleging us to be a part of.
What’s happening is a part of pump’s treasury management, where USDC from the $PUMP ICO has been… https://t.co/qd6GUnIxKH
— Sapijiju (@sapijiju) November 24, 2025
He said the company had never worked directly with Circle and that the flow of funds showed efforts to arrange budgets and support the platform’s runway.
Treasury management covers simple tasks like storing funds, adjusting budgets and reorganizing wallet structures. These moves do not confirm selling and projects often reshuffle resources before large updates or expansion plans.
Even with the clarification, the report created heated debates because the transfers came at a difficult moment for the platform. Pump.fun’s monthly revenue fell to $27.3 million in November.
It had not dropped below $40 million since July, according to DefiLlama.
Strategy Questions Rise After Large USDC Transfers
Lookonchain reported that wallets tied to Pump.fun sent $436 million in stablecoins to Kraken between mid-October and late November.
Many observers saw this as a major off-ramp. The timing added pressure because the memecoin market was already cooling after heavy losses earlier in the month.
The practice of manipulating prices through airdrops is utterly baffling; your explanation is untenable, and the price fell below the offering price even without airdrops—what a terrible team…
— 羊咩的鲸鱼 (@EthSheepwhale) November 24, 2025
Despite the movement, platforms Arkham, DefiLlama and Lookonchain still showed more than $855 million in stablecoins sitting in the main Pump.fun wallet. They also showed around $211 million in Solana remaining untouched.
This added more confusion. Some researchers said such transfers could be an early hint of future selling. Others said they looked more like private placement withdrawals than open market activity.
EmberCN argued that the USDC likely came from institutional allocations of the PUMP token rather than aggressive selling.
Related Reading: Pump Fun Unveils “Spotlight” Initiative for Tokenized Projects
Community Divided as Questions Continue
The community reaction was split into several camps. Some users felt that the explanation created more confusion.
They pointed out that the co-founder said the project managed its treasury, but also said he was not involved in the movement of the funds. They argued that the message sounded unclear and left open questions.
Other users dismissed the entire statement and argued that the token’s performance showed deeper issues. $PUMP thus traded at $0.002714 at the time of the discussion. CoinGecko data showed a 32% drop from its ICO price of $0.004. The token also fell almost 70% from its September peak of $0.0085.
A separate group defended Pump.fun’s right to organize its own treasury as it saw fit.
They said the transfers alone did not prove anything. They felt the issue centered on one question. The community wanted to know whether USDC reserves truly matched the circulating supply.
Some supporters said the project should publish clearer documentation to help address that point.
The tension grew because of the wider environment. The memecoin sector had lost billions after a market crash in October and activity slowed across the entire ecosystem. Pump.fun still held large reserves, but its revenue drop matched a decline in user interest.