Pump.fun Denies Solana Sell-Off Rumors

Behind the $22 Million Transfer: Pump.fun Denies Solana Sell-Off Rumors

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 26, 2024

Key Takeaways

Pump.fun transferred $22M more Solana to Kraken, totaling $94M in outflows, fueling speculation about possible sell-offs;
Co-founder Alon denied selling claims, emphasizing assets can be sent to exchanges without intent to sell;
Despite $220M in revenue, Pump.fun faces community criticism over fund handling and alleged retail investor impact.

Another $22 million worth of Solana SOL $231.40 was transferred from the Pump.fun Fee Account to the centralized exchange Kraken $888.9M .

The total Solana shifted by the meme coin launchpad, Pump.fun, has exceeded $94 million over the past month, according to blockchain data sourced from Solscan, a Solana blockchain explorer.

These large transactions have sparked speculation within the crypto community, with many suggesting that Pump Fun is offloading Solana on centralized exchanges.

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Critics argue such actions could be contributing to downward pressure on Solana's market price. However, Alon, a pseudonymous co-founder of Pump.fun, quickly dismissed these rumors, labeling them as "misinformation".

Alon responded to claims made by on-chain analytics Lookonchain, which suggested Pump.fun was selling SOL. Alon remarked:

Did you know that you can send assets to an exchange without intending to sell those assets?

Lookonchain later issued a correction, admitting they could not confirm whether the platform sold the Solana tokens.

Since its launch in January 2024, Pump.fun has stood out as a player in the crypto space, particularly among meme coin enthusiasts. The platform has generated over $220 million in revenue, showing its influence in the current market cycle.

Despite its success, the project has faced criticism from the community for its handling of funds. Critics, including the pseudonymous crypto personality 0xSisyphus, accused Pump.fun’s developers of converting funds into USD Coin USDC $0.9973 at the expense of retail investors.

Pump.fun's financial decisions continue to stir debate, but the controversies don’t stop there. Recently, the platform faced even more backlash, leading to a surprising decision to shut down its livestreams indefinitely. What drove this drastic decision? Read the full story.