A drop in speculative interest in cryptocurrency has led to a dramatic decline in Pump.fun’s revenue, falling by 50% since October. Concerns have emerged over potential selling pressure following the massive cash-out actions by the platform.
Since October 15, Pump.fun has transferred over $436 million in USDC (a stablecoin) to Kraken, indicating that the operators might be liquidating their assets. This transfer came shortly after the notable $19 billion market collapse that dampened the enthusiasm of memecoin traders.
Source: Lookonchain
In November, Pump.fun’s revenue dipped below $40 million for the first time since July, plummeting to $27.3 million, down 53% from August’s earnings of $58.9 million.
Cointelegraph reached out to Pump.fun concerning the reasons behind the current selling trends and any plans for future liquidations. A representative indicated that the team would be issuing a comment soon as they manage their timeline.
Market Trends and Analysis
The large cash movements from Pump.fun have raised eyebrows among traders, who fear this indicates further sell-offs.
Analysts like Nicolai Sondergaard from Nansen remark that the decline in memecoin trading was noted even before the October flash crash, which hurried the downturn. He stated, “Retail got burned repeatedly over the past few months, so the drop-off we’re seeing now is a continuation of that.”
“This also isn’t the first time we’ve seen reports of large sell-offs from Pump.fun, so it wouldn’t be surprising if they continued selling from their holdings.”
As of now, the Pump.fun wallet still maintains approximately $855 million in stablecoins and $211 million in Solana tokens.
Source: Arkham
According to EmberCN, an onchain analyst, the recent transfers appear to reflect withdrawals rather than immediate sell-offs. This activity is perceived as stemming from prior institutional placements of the $PUMP token.
“Pump.fun is operating like a continuous liquidation machine while others are trying to catch up on buying the dips,” noted a crypto investor SK.
