Solana News Today: Pump.fun's $436M Transfer: Exit Strategy or Standard Treasury Practice?

The Pump.fun co-founder, known pseudonymously as Sapijiju, has denied allegations that the Solana-based memecoin project cashed out $436 million in USDC stablecoins, calling the claims "complete misinformation" from blockchain analytics firm Lookonchain. The controversy erupted after Lookonchain reported that Pump.fun-linked wallets had transferred the funds to Kraken since mid-October, an activity interpreted by many as a large-scale liquidation. Sapijiju clarified that the transfers were part of routine treasury management, redistributing initial coin offering (ICO) proceeds to internal wallets for reinvestment, and emphasized that Pump.fun has never directly collaborated with Circle, the issuer of USDC as stated in the report. Treasury management, a common practice in crypto projects, involves reallocating funds for operational needs or future development, and does not inherently signal selling pressure according to crypto analysts.

Despite the dispute, on-chain data from platforms like DefiLlama, Arkham, and Lookonchain shows Pump.fun-tagged wallets still hold over $855 million in stablecoins and $211 million in Solana as of November. This contradicts fears of a cash-out, though the project's monthly revenue fell to $27.3 million in November-the first decline below $40 million since July-raising questions about financial sustainability according to reports. Analysts remain divided: Nicolai Sondergaard of Nansen suggested the transfers could precede further selling, while researcher EmberCN argued the funds originated from institutional private placements rather than active dumping according to analysis.

The community's reaction has been polarized. Critics questioned inconsistencies in Sapijiju's statements, such as his simultaneous claims of no involvement in the transfers and active treasury management according to community analysis. Others defended Pump.fun's right to manage its assets, with users noting that reallocating ICO funds is standard for legitimate projects as observed. Meanwhile, the PUMP token has faced downward pressure, trading at $0.002714 as of press time-a 32% drop from its ICO price and nearly 70% below its September peak as reported.

Recent price action has shown some recovery. After initial weakness, PUMP rebounded 2% on November 26, breaking above the critical $0.0060 resistance level to trade at $0.00625. This follows an 8.7% 24-hour gain, driven by revenue-based buybacks reducing circulating supply and renewed Solana memecoin sector strength according to market data. Technical analysts project short-term targets of $0.0077–$0.0080, with a broader outlook aiming for a retest of the all-time high above $0.015, contingent on Solana's momentum as forecasted. Key support levels at $0.0060 and $0.0054 are critical for maintaining bullish momentum, while risk management strategies recommend tight stops and disciplined profit-taking according to technical analysis.

The ongoing debate over treasury management versus selling pressure underscores the volatility inherent in memecoins, where project actions and market sentiment can rapidly shift. As Pump.fun navigates these challenges, its ability to maintain transparency and community trust will likely influence its trajectory.