- Pump.fun team moved $436M in USDC, raising transparency concerns.
- PUMP price dropped 24%, falling below previous levels.
- Investors criticized lack of updates, incentives, and declining platform activity.
Pump.fun — PUMP , faced a sharp decline after reports of large fund transfers emerged. Traders and investors reacted quickly as the token fell 24%, prompting concerns over transparency and market stability. The team moved $436.5 million in USDC since mid-October, raising questions about the project’s financial operations. PUMP’s recent performance shows how quickly market sentiment can shift when significant funds leave a project.
Massive Fund Movements Raise Questions
On-chain analyst EmberCN reported that Pump.fun transferred approximately 405 million USDC to the Kraken exchange last week. During the same period, 466 million USDC flowed from Kraken to Circle, the issuer of the stablecoin. Analysts suggest these movements likely represent a major withdrawal by the project team.
Institutions acquired 18% of the total 1 trillion token supply, generating an estimated $720 million. Since October 15, 436.5 million USDC moved into Kraken, followed by 537.6 million USDC flowing to Circle. In addition, the team sold 4.19 million Solana tokens since May 2024, bringing in roughly $757 million in proceeds through August 2025.
Community Concerns and Token Impact
The large fund movements sparked criticism from the community. Social media users highlighted that Pump.fun generated over $1 billion in revenue in the past year. Many questioned the absence of airdrops, marketing support, or community incentives. Others challenged founder Alon’s claims regarding Q4 performance expectations. The PUMP token suffered significant losses, dropping 22.77% over the past week.
In the last 24 hours as of writing, it fell another 3.97%, trading at $0.0026, below previous price levels. Analysts noted that insiders and early investors controlled around 55% of the token supply at launch, creating unfavorable conditions for retail traders. Pump.fun has earned over $908 million in revenue from its token factory platform since launch, according to Dune Analytics. Yet platform activity has slowed in recent weeks.
Daily active wallets dropped below 100,000, and only 86 of more than 10,000 tokens created in the last 24 hours reached higher-tier status. The platform recently introduced Mayhem Mode, an AI-driven feature to boost activity. Despite this, daily token launches increased slightly from 17,300 to 17,800. Meanwhile, Pump.fun faces class-action lawsuits in New York alleging the sale of unregistered tokens and misleading statements about potential returns.
