Pumpfun Accused of Token Dumping Following USDC Transfers
- Pumpfun accused of dumping tokens after USDC transfers.
- Sapijiju denies allegations, cites treasury management.
- PUMP token price down 72% from recent highs.
Pumpfun, a meme coin project on the Solana blockchain, faces accusations of token dumping following massive USDC transfers to Kraken, sparking concern within the crypto community.
The controversy highlights existing worries about potential liquidation and market manipulation in Solana’s ecosystem, negatively impacting the value of Pumpfun’s native token, PUMP.
The Pumpfun team faces allegations of token dumping following significant USDC transfers to Kraken. The accusations arose during massive fund movements, raising concerns within the crypto community about potential market manipulation.
The main figures linked to this event, including co-founder Sapijiju, have publicly addressed these accusations. He stated that the USDC transfers were part of normal treasury management, refuting claims of direct cash-outs or sales.
“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.” — Sapijiju, Co-founder, Pump.fun
Immediate effects include a 40% decline in Pumpfun’s token value. The PUMP token is now down over 72% from September 2025 highs, reflecting uncertainty among investors in the wake of recent events.
Financial implications show a significant drop in Pumpfun’s revenue, declining from $136 million in January 2025 to $38 million recently. This suggests a severe decrease in user activity and confidence in the project.
On-chain data reveals large USDC movements interpreted as potential sell-offs. The lack of communication from Pumpfun’s leadership heightens community concerns about transparency.
Insights suggest possible regulatory scrutiny due to Pumpfun’s history of similar events. The firm faces ongoing legal challenges over potential securities law violations, adding complexity to its operational environment.
