Pump.fun co-founder denies cashing out ICO funds

Pump.fun co-founder Sapijiju rejected allegations that the platform cashed out hundreds of millions of dollars in stablecoin, responding directly to claims made by on-chain analytics account Lookonchain.

Summary

• Sapijiju called the allegation “complete misinformation” and stated that no funds had been cashed out.
• The movements flagged by Lookonchain were related to Pump.fun’s internal treasury management.
• Lookonchain had claimed that, over a recent period, Pump.fun deposited large sums into Kraken and that funds moved from Kraken to Circle via an identified wallet.

Sapijiju called the allegation “complete misinformation” and stated that no funds had been cashed out, according to statements posted on social media. The co-founder denied involvement in transactions Lookonchain linked to cryptocurrency exchange Kraken and stablecoin issuer Circle.

The movements flagged by Lookonchain were related to Pump.fun’s internal treasury management, redistributing stablecoin raised from the initial coin offering into different wallets so the company’s operational funds could be reinvested into the business, according to Sapijiju. The co-founder added that Pump.fun has never directly worked with Circle.

Lookonchain had claimed that, over a recent period, Pump.fun deposited large sums into Kraken and that funds moved from Kraken to Circle via an identified wallet. The analytics account also alleged substantial on-chain sales and deposits of the platform’s native blockchain token during a separate multi-month period.

Sapijiju receives mixed reactions

Some observers noted an apparent contradiction between the team’s denial of involvement in Kraken and Circle transactions while acknowledging that the stablecoin moves were part of treasury management from the ICO. Others welcomed the team’s engagement with the community, noting that treasury management is often mistaken for cash-outs.

Critics questioned the team’s strategy and warned about potential token value decline. Some community members urged the team to provide proof that stablecoin reserves fully back the circulating supply.

Pump.fun’s ICO earlier this year raised a substantial sum in minutes after selling a portion of the total supply in a public offering, according to reports. Initially, one-third of the token supply had been allocated to the ICO, with portions reserved for institutional buyers and the public sale, though only part of the public allocation was sold.

Days before the ICO, cryptocurrency exchange Gate.io canceled the token’s pre-market listing and refunded presale participants, later stating the decision followed discussions with the Pump.fun team.

Last year, the Solana-based meme coin launchpad temporarily paused its livestream feature after it was exploited for disturbing acts, including threats of self-harm and violence tied to token performance, according to the platform. Rapid growth in livestream activity overwhelmed moderation systems, prompting Pump.fun to expand its moderation team and improve automated and human oversight.