Project Says USDC Movements Were Internal Reallocations, Not Large-Scale Selling
Pump.fun’s pseudonymous co-founder, Sapijiju, has pushed back against allegations that the Solana-based memecoin platform quietly cashed out more than $436 million in USDC, calling the claims “complete misinformation” circulated by blockchain analytics firm Lookonchain.
Co-Founder Says Funds Weren’t Sold
In a detailed response posted on X, Sapijiju insisted that none of the shifted USDC was off-ramped or liquidated, explaining that the stablecoins originated from the project’s PUMP token initial coin offering.
“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,” he wrote, adding that Pump.fun had “never directly worked with Circle.”
Treasury management—an operational practice that involves reallocating reserves, reorganizing wallets and preparing budgets—does not inherently indicate selling.
The co-founder emphasized that the transfers represented internal bookkeeping rather than market exits.
Fund Movements Trigger Selling Fears
Lookonchain had earlier reported that wallets linked to the project moved $436M in USDC to Kraken since mid-October, sparking speculation of a major cash-out. The activity also coincided with Pump.fun’s monthly revenue fall from over $40 million to $27.3 million in November, according to DefiLlama.
Despite the concerns, data from Arkham, Lookonchain and DefiLlama showed Pump.fun-tagged wallets still holding over $855 million in stablecoins and $211 million in Solana.
Market analysts offered mixed interpretations. Nansen analyst Nicolai Sondergaard suggested the activity looked like a potential precursor to further selling, while EmberCN argued the funds likely came from institutional private placements, not dumping.
The public reaction was sharply split. Some X users argued that Sapijiju’s explanation lacked clarity, pointing out inconsistencies in the statement. Others defended the project’s right to manage its treasury as it sees fit.
Meanwhile, the PUMP token has continued to slide, trading at $0.002714, down 32% from its ICO price and nearly 70% below its September peak.
For many in the community, the core issue now centers on transparency around reserves rather than wallet movements alone.
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