On-Chain Data Challenges Pump.fun's Treasury Narrative Amid $436M Outflows

The co-founder of Pump.fun, a prominent Solana-based memecoin launchpad, has denied allegations that the platform cashed out $436.5 million in USDC stablecoins, calling the claims "complete misinformation" and attributing the transfers to treasury management. The controversy has intensified as on-chain data revealed significant outflows from Pump.fun wallets to Kraken, followed by movements to Circle, the issuer of USDC. Analysts and users alike have raised concerns about the implications for the platform's financial strategy and the broader memecoin ecosystem.

Blockchain analytics firm Lookonchain reported that since October 15, 2025, Pump.fun transferred 436.5 million USDC to Kraken. Over the same period, 537.6 million USDC moved from Kraken to Circle through a wallet identified as DTQK7G, leading some analysts to interpret the activity as a liquidity withdrawal. The funds reportedly originated from Pump.fun's June 2025 private sale of PUMP tokens, where 18% of the total supply was sold to institutional investors at $0.004 per token. The public sale, which concluded in 12 minutes, raised an additional $500 million.

Dylan Kerler, Pump.fun's co-founder and CTO, responded on social media, stating that no funds were "withdrawn", and that the transfers were part of the platform's treasury management strategy. He emphasized that the USDC from the initial coin offering (ICO) was being reallocated to reinvest operating capital into the business. Kerler also denied direct collaboration with Circle, clarifying that the platform had no involvement in the transactions between Kraken and the stablecoin issuer.

The controversy has coincided with a decline in user confidence and the PUMP token's price. The token has fallen 22% over the past week, trading at $0.00262 as of November 25. Pump.fun's official X account has remained silent for over 10 days, exacerbating uncertainty among users. The platform's recent Mayhem Mode experiment, designed to boost activity for new tokens, has also faced criticism, with the number of new token creations dropping sharply.

Market data further highlights Pump.fun's challenges. Its monthly revenue has fallen to $27.3 million in November, down 53% from $58.9 million in September. The platform's daily revenue has declined to $200,000, compared to over $7 million at the height of the January 2025 memecoin frenzy. Competitors like LetsBonk.fun have gained market share, intensifying pressure on Pump.fun to innovate. In response, the platform launched the Glass Full Foundation to inject liquidity into select ecosystem tokens, though details on funding sources and selection criteria remain undisclosed.

Pump.fun's actions have broader implications for the memecoin market, which has seen waning enthusiasm amid macroeconomic headwinds and regulatory scrutiny. Treehouse, another DeFi protocol, recently announced a revenue-backed buyback program for its TREE token, reflecting a shift toward treasury-driven value accrual. Meanwhile, Pump.fun's recent acquisition of Padre Trading and Kolscan aims to bolster its ecosystem, though the effectiveness of these moves remains to be seen.

As the debate over Pump.fun's financial practices continues, the platform's ability to restore user trust and adapt to a cooling market will be critical. The outcome could influence the trajectory of memecoins on Solana and the broader crypto landscape.