The latest controversy around Pumpfun isn’t centered on memes or hype — it’s about money leaving the ecosystem, and a lot of it.
- Massive USDC transfers tied to Pumpfun’s treasury triggered fresh dumping fears.
- Platform revenue has collapsed, amplifying trust concerns.
- The team denies selling, but confidence remains shaky.
As the project’s token continues to bleed value, on-chain analysts are uncovering large treasury movements that are raising doubts about whether the team is quietly cashing out.
A Collapse in User Demand Meets Major Treasury Movements
Activity on Pumpfun has been slowing for months. Monthly revenue, which hit an eye-watering $136 million in January, has now dropped to $38 million. With fewer users creating and trading tokens — the core engine of the platform — investors are watching the team’s financial decisions much more closely.
That has made the latest blockchain discoveries particularly explosive. Trackers observed 75 million USDC sent to Kraken in just eight hours, part of a much larger trail totaling roughly 480 million USDC transferred from wallets tied to ICO funds.
pump. fun (@Pumpfun) 在 8 小时前继续把 7500 万枚 USDC 转进了 Kraken，他们从 11/15 以来 12 天时间一共向 Kraken 转移了 4.8 亿枚 ICO 销售获得的 USDC。
前几天 pump. fun 团队的人说他们并没有进行出金，只是把这些 ICO 销售获得的 USDC 进行了分散，以便公司重新投入业务。
不过今天凌晨他们这… https://t.co/ZF50eruGSd pic.twitter.com/hOxYxDCZeq— 余烬 (@EmberCN) November 27, 2025
The transfers would normally be written off as operational if the token price were stable. Instead, they landed during one of the worst declines since launch — and that combination has triggered an uproar.
Why Kraken Became the Center of the Storm
The moment that shifted the conversation from “suspicious” to “concerning” was Kraken’s own transaction. Shortly after receiving the treasury funds, the exchange forwarded 69.26 million USDC to Circle, a pattern typically seen when liquidity is converted or redeemed.
That detail fueled speculation that the treasury was being liquidated rather than repositioned.
It didn’t help that earlier data from Lookonchain showed wallets tied to Pumpfun selling $757 million worth of SOL between May 2024 and August 2025 — activity that already had some traders on edge.
Public Response: Denial — and Doubt
Co-founder Sapijiju issued a direct rebuttal, saying the circulating narrative “misinterprets routine treasury management.” He argued that the company was simply moving ICO proceeds into wallets designed to fund long-term development.
However, with the project actively running a buyback program intended to support the token, the community is now questioning whether Pumpfun is really reducing sell pressure — or creating it.
A Trust Problem More Than a Blockchain Problem
Nothing in the blockchain record proves malicious intent. But the order of events — shrinking revenue, accelerating transfers, price decline, and the lack of proactive transparency — has created a perception issue that may be difficult to reverse.
Even if the funds were moved for completely legitimate runway management, the damage isn’t happening on the ledger — it’s happening in confidence.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/pump-investors-lose-confidence-as-on-chain-data-points-to-major-sell-pressure/