According to on-chain reports, Pump.fun, the leading meme coin on the Solana (SOL) blockchain, has allegedly cashed out over 436 million USDC since mid-October.
These withdrawals raise questions about Pump.fun’s financial strategy at a time when its community management has gone silent and user confidence and token price are wavering.
Pump.fun Sparks Concers After Alleged USDC Cashout
On-chain data indicates a significant outflow of capital associated with Pump.fun. Lookonchain reported that, since October 15, Pump.fun transferred 436.5 million USDC to the crypto exchnage Kraken.
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Over the same period, 537.6 million USDC moved from Kraken to Circle through the wallet identified as DTQK7G. Analyst EmberCN suggested that this activity is most likely a withdrawal. The analyst also noted that these funds originate from Pump.fun’s sale of the PUMP tokens to institutional investors in June.
In that private sale, 18% of the total 1 trillion PUMP supply was allocated to institutional buyers at a fixed price of 0.004. This was followed by a public sale that concluded in just 12 minutes, raising 500 million.
Additionally, Lookonchain noted that the platform offloaded substantial Solana (SOL) holdings in the past months.
Notably, Pump.fun’s silence on X has contributed to the uncertainty. The account has not posted anything for around 10 days, leaving users without updates. This lack of communication has further intensified questions about the platform’s direction and ongoing commitment.
The newly launched Mayhem Mode has also caused user disappointment. The experimental feature is designed to boost activity for newly created tokens by using an AI agent that executes trades on eligible assets during its first 24 hours..
According to Dune data, the number of Mayhem tokens created has dropped significantly, from 1,430 on November 12 to just 19 on November 21. The Mayhem Agent currently shows a net PnL of –$84,819.
Pump.fun (PUMP) Price Performance. Source: BeInCrypto MarketsLastly, PUMP is also facing market headwinds. BeInCrypto Markets Data shows that PUMP has declined 22.2% over the past week. At the time of writing, the altcoin was trading at 0.00262, a decrease of 2.43% over the past 24 hours.
Source: https://beincrypto.com/pumpfun-usdc-withdrawals-mayhem-backlash/
