Pump.fun Team Dumps $500M After PUMP Tanks — Major Exit Incoming?

Key Takeaways

• Pump.fun has transferred hundreds of millions of dollars raised from the PUMP token sale to Kraken.
• The move has prompted fears that the project’s team is cashing out.
• PUMP is currently trading around 36% below its ICO price.

When PUMP was launched in July, demand was so high that all 150 billion tokens were sold out within minutes.

At $0.004 a piece, the sale generated significant revenue for Pump.fun’s founders, who have moved to cash out $466 million USDC in recent days.

But with PUMP trading below $0.0026 as of Nov. 24, investors haven’t been so lucky.

Exit Fears Abound as Pump.fun Team Cashes Out

According to blockchain analyst EmberCN , in the week to Monday, Pump.fun deposited $466 million USDC into Kraken, where it was swiftly transferred to Circle.

The funds can be traced back to the memecoin launchpad’s token sale in the summer, which raised a total of $600 million.

Unlike other similar offerings, Pump.fun’s team never said they would use proceeds from the sale as seed liquidity.

Nor did they commit to a predetermined lockup period. Nevertheless, the recent withdrawals coupled with radio silence from the platform’s founders have set alarm bells ringing .

Normally a prolific social media poster, Pump.fun founder alon’s X profile has been inactive since Nov. 8. The platform’s official X account has also been suspiciously quiet.

PUMP ICO Investors Down 36%

Initial Coin Offering (ICO) profits generated by Pump.fun’s founders stand in stark contrast to losses incurred by investors.

With PUMP now trading under $0.0026, ICO buyers are sitting on losses of roughly 36% from the $0.004 sale price.

For now, the memecoin exchange remains as popular as ever.

But the ship could sink rapidly without a captain.

In a market that prices memecoins on vibes and momentum, ongoing exit fears threaten to further erode to PUMP’s price.