Pumpfun Accused of Token Dumping Amid Massive USDC Transfers to Kraken

The Pumpfun team has been accused of dumping the token’s price as it continues to decline. This came as on-chain data flags massive transfers of USDC linked to the platform’s ICO proceeds to Kraken for sell-offs.

Pumpfun Faces USDC Sales Allegations

Blockchain trackers have again identified another round of major USDC movements linked to the project’s treasury. Per data from EmberCN, the platform transferred 75 million USDC to Kraken within an eight-hour window. This brings the total amount moved to 480 million USDC.

The Pumpfun team said these were just normal transfers for its treasury. However, data showed that Kraken made a transfer of 69.26 million USDC to Circle after receiving the funds. Experts say this is most likely a sell-off.

Also, Lookonchain shared that they had already sold $757 million in SOL between May 2024 and August 2025. 

It appears https://t.co/C909I8882s has cashed out at least 436.5M $USDC since Oct 15.

Since Oct 15, https://t.co/C909I8882s has deposited 436.5M $USDC into#$Kraken.

During the same period, 537.6M $USDC flowed from #Kraken to #Circle through wallet DTQK7G.

Between May 19, 2024… pic.twitter.com/WQGnUcA8l4

— Lookonchain (@lookonchain) November 24, 2025

The platform generated $136 million in revenue in January. It has now fallen to $38 million. The implication here is that user activity is reducing.

Co-founder Sapijiju on the platform strongly pushed back against the claim. He argued that the flagged transactions were misconstrued. In a public statement, he described the USDC movements as part of standard treasury management.

“What’s happening is a part of pump’s treasury management, where USDC from the $PUMP ICO has been transferred into different wallets so the company’s runway can be reinvested into the business. pump has never directly worked with Circle,” he said.

These latest transfers could weigh on trust tied to Pumpfun’s buyback program. They started the initiative in September to help stabilize PUMP’s market performance.

PUMP Price Declines Despite Ecoystem Changes

The PUMP price has remained in a constant state of decline since reaching its peak in August. The token achieved a price high of $0.00898 following the end of its ICO. The coin has fallen steeply to currently trade around $0.00291. That marks a decline of more than 40% in just the last month.

This comes despite positive developments in its ecosystem. In September, Pumpfun began the Project Ascend program to improve its services. This initiative changes the fee structure to encourage creators. It also reduced fees as its market cap increased.

The token was also adopted by institutions. Fitell Corporation purchased PUMP tokens for its treasury holdings. This is usually not common for coins like this. These events did not have an effect on the token’s price as it still remains in a dip.