Solana-based meme coin launchpad Pump.fun is under intense scrutiny and facing community backlash following a massive series of USDC transfers, which analysts are calling a "withdrawal" or "cash out" operation.
Key Financial Movements:
- Total Withdrawal: Since October 15, Pump.fun has withdrawn an estimated $436.5 million USDC (according to on-chain analysis).
- Recent Transfers: In the past week alone, the team moved $405 million USDC into Kraken, followed by a transfer of $466 million USDC from Kraken to Circle.
- Proceeds Source: Crypto analyst EmberCN suggests these funds are likely the proceeds from Pump.fun’s June private sale of PUMP tokens to institutional investors.
- Solana Sales: The platform has also sold a total of 4.19 million Solana (SOL), worth nearly $757 million, between May 2024 and August 2025. The majority of this SOL ($715.5 million) was deposited into Kraken.
Community Reaction and Token Performance:
- Silence from Platform: Pump.fun's official X account has been silent for over a week, failing to address the large transfers.
- Community Criticism: The significant cash-outs have triggered a strong negative reaction from the community, with users noting that the project has allegedly "pocketed over a billion in the past year" without providing airdrops, marketing, or other incentives back to its supporters.
- PUMP Token Plunge: The native PUMP token has been bearish, falling nearly 4% in the last 24 hours and over 22.77% in the past week. Its current price of $0.0026 is now lower than its June institutional private sale price of $0.004.
- Failed Feature: Investor confidence was further undermined by the recent launch of "Mayhem Mode," an AI-driven token launch feature that failed to significantly boost daily token launches.
November 2025, Cryptoniteuae