The memecoin platform Pump.fun sent $75 million in USDC to Kraken on November 27, marking the latest in a series of large stablecoin transfers that have sparked widespread cash-out concerns. According to blockchain analytics by EmberCN, the total amount moved to the exchange since November 15 has reached approximately $480 million, all sourced from the project's initial coin offering (ICO) proceeds.
Pump.fun's co-founder, Sapijiju, has repeatedly denied allegations of cashing out, stating that the movements are part of routine treasury management to redistribute USDC across wallets for operational support and future development. However, analysts note a consistent pattern where funds deposited to Kraken are soon transferred to Circle, the issuer of USDC, often indicating redemptions to traditional currency. For instance, shortly after the $75 million deposit, about $69.26 million USDC moved from Kraken to Circle, mirroring a similar $466 million shift reported on November 24.
The controversy is compounded by Pump.fun's token allocation issues, where over half of the PUMP supply was held by insiders and early buyers at launch, distorting market conditions. The project has generated over $910 million in revenue, but recent slowdowns and legal pressures, including class-action lawsuits in New York alleging unregistered token sales, have weighed on sentiment. At press time, PUMP traded at $0.00294, down 38% over the month, with analysts from Coincodex predicting further weakness due to high volatility and an Extreme Fear score of 15 on the Fear & Greed Index.
TOWN
BTC