Pumpfun Token Drops 40% Amid $480M USDC Transfers to Kraken

Sean Williams
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  • Pumpfun’s token, PUMP, has dropped by over 40% in the past month.
  • Alleged market manipulation arises from the transfer of $480M USDC to Kraken.
  • Despite new initiatives, the platform is struggling with declining user activity and revenue.

Pumpfun, a growing blockchain platform, is under fire as its native token, PUMP, continues to experience a significant drop in value. Allegations of market manipulation have surfaced after on-chain data flagged large transfers of USDC, tied to the platform’s ICO proceeds, to cryptocurrency exchange Kraken. This has sparked concerns that the team may be orchestrating sell-offs that are contributing to the token’s sharp decline.

USDC Transfers and Alleged Sell-Offs: What’s Behind the Controversy?

According to data from blockchain analytics firm EmberCN, the Pumpfun team recently transferred a massive 75 million USDC to Kraken within just eight hours. This is part of a broader pattern, with a total of 480 million USDC moving across different wallets linked to the platform’s treasury. While the team insists that these are routine treasury management actions, the data raises eyebrows. After receiving the funds, Kraken transferred 69.26 million USDC to Circle, an action that some experts suggest is indicative of a sell-off.

The timing of these movements, coupled with the declining price of the PUMP token, has led many in the crypto community to speculate that Pumpfun may be dumping tokens to manipulate the market. It doesn’t help that Lookonchain data reveals the platform has already sold off $757 million in Solana (SOL) between May 2024 and August 2025, raising further suspicions.

The Fall in User Activity and PUMP Token Price

Despite a strong start to 2025, when Pumpfun recorded $136 million in revenue in January, the platform has since seen a steep decline in user activity. Revenue has dropped dramatically, now standing at just $38 million. This sharp drop raises questions about the platform’s long-term sustainability and its impact on the PUMP token’s market performance.

The PUMP token itself has taken a severe hit. Once peaking at $0.00898 after its ICO, it has plummeted by over 40% in the last month alone, currently trading around $0.00291. Even with positive initiatives like the Project Ascend program, which aims to incentivize creators with lower fees, the token has failed to regain its upward momentum.

Co-Founder’s Response and the Future of Pumpfun

Pumpfun co-founder Sapijiju has dismissed these accusations, explaining that the flagged USDC transactions are simply part of normal treasury management. In a public statement, he clarified that the company is reinvesting in its business and that the transfers are unrelated to any market manipulation.

Also Read: Pump.fun Denies $436M Cash-Out, Explains Treasury Management

Despite these efforts to restore confidence, the continued decline of the PUMP token and growing skepticism in the crypto community have raised serious concerns about Pumpfun’s future. The platform’s attempt to stabilize the token price with a buyback program is yet to show results, and it remains unclear whether Pumpfun can recover from this deepening crisis.

Pumpfun’s rapid decline in both user engagement and token price has raised alarms about its future. While the team has tried to quell concerns through public statements and new initiatives, the continued movement of ICO funds to Kraken and the ongoing price dip suggest that the road ahead may be a rocky one. Whether the platform can regain its footing or face further decline remains to be seen.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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