Pseudonymous Pump.fun co-founder Sapijiju has refuted claims that the project cashed out over $436 million in stablecoins, labeling the allegations as "complete misinformation" originating from blockchain analytics firm Lookonchain.
In an X post, Sapijiju addressed the report, asserting that none of the transferred funds were sold. He clarified that the USDC originated from the PUMP token’s initial coin offering (ICO) and was simply redistributed to internal wallets as part of the company’s treasury management process.
Sapijiju stated, "What’s happening is a part of Pump’s treasury management, where USDC from the $PUMP ICO has been transferred into different wallets so the company’s runway can be reinvested into the business. Pump has never directly worked with Circle."
Treasury management involves a project allocating, storing, and moving its funds, such as operating capital, ICO proceeds, or reserves, to ensure continued operation. These transfers do not necessarily indicate selling and can involve simple wallet reorganization and preparations for future developments.
Cointelegraph reached out to Lookonchain and Pump.fun for comment but had not received a response by the time of publication.
Fund Movement Sparked Fears of Selling Pressure
Sapijiju's statements followed a report by Lookonchain indicating that wallets associated with the Solana memecoin launchpad had moved $436 million in USDC to the crypto exchange Kraken since mid-October. This movement was widely interpreted as a significant cash-out event.
These fund transfers coincided with Pump's monthly revenue falling below $40 million for the first time since July, decreasing to $27.3 million in November, according to data from DefiLlama.
Despite these movements, data platforms DefiLlama, Arkham, and Lookonchain showed that the Pump.fun-tagged wallet still holds over $855 million in stablecoins and $211 million in Solana (SOL).
Nicolai Sondergaard, a research analyst at crypto intelligence platform Nansen, interpreted the perceived sell-off as a potential precursor to further selling. However, EmberCN suggested that the funds originated from institutional private placements of the PUMP token, rather than active selling.
Community Split Between Skepticism, Defense, and Calls for Audits
The community's reaction to Sapijiju’s explanation was divided. Some users expressed skepticism, believing the co-founder's wording raised more questions, while others defended Pump.fun's prerogative to manage its own treasury.
X user Voss pointed out perceived contradictions in the statement, noting that the co-founder claimed no direct involvement in the transfer while simultaneously stating they were managing their treasury. Voss wrote, "Definitely didn’t just contradict yourself on a post you had 10 hrs to respond to."
Another community member, EthSheepwhale, dismissed Sapijiju's announcement entirely, criticizing what they described as "price manipulation via airdrops" and poor execution that resulted in the token trading below its offering price.
CoinGecko data showed that the PUMP token was trading at $0.002714, marking a 32% decrease from its ICO price of $0.004. The token has also fallen by nearly 70% from its September high of $0.0085.
Conversely, some community members offered more sympathetic viewpoints, suggesting that the core issue extends beyond wallet flows to transparency regarding reserves.
User Matty.Sol stated that Pump.fun had the autonomy to deploy its revenue and ICO proceeds as it saw fit. Matty wrote, "Nothing wrong even if it’s true. It’s your own revenue tho."
User Oga NFT commented that moving USDC is a standard practice for legitimate projects post-ICO, emphasizing that the crucial question remains whether USDC reserves truly back the circulating supply.