Pseudonymous co-founder of Pump.fun, Sapijiju, has dismissed accusations regarding a staggering cashout of over $436 million in stablecoins, labeling these claims made by Lookonchain as “complete misinformation.”

In a recent post on X, Sapijiju clarified that the USDC movements are routine and part of Pump.fun’s treasury management system. The funds arose from the PUMP token’s initial coin offering (ICO) and were simply redistributed between internal wallets.

“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,” stated Sapijiju. “Pump has never directly worked with Circle.”
“Ce qui se passe fait partie de la gestion de trésorerie de Pump, où l’USDC de l’ICO $PUMP a été transféré dans différents portefeuilles pour que la viabilité de l’entreprise puisse être réinvestie.”

Treasury management implies a project’s method of handling and relocating its funds, which may encompass operational capital and reserves, ensuring ongoing operations without necessitating sales.

Cointelegraph attempted to contact Lookonchain and Pump.fun for further insights but did not receive responses prior to publication.

Movement of Funds Caused Concerns Over Selling Pressure

Sapijiju’s statements came in light of Lookonchain’s report that associates of the Solana memecoin launchpad had transferred $436 million in USDC to Kraken, raising fears of a potential large-scale sell-off.

This transfer coincided with a monthly revenue dip for Pump below $40 million, falling to $27.3 million in November, according to data from DefiLlama. However, platforms like DefiLlama, Arkham, and Lookonchain reported that the Pump.fun wallet retained over $855 million in stablecoins and $211 million in Solana (SOL).

Nicolai Sondergaard, a researcher at the crypto platform Nansen, perceived the supposed sell-off as a precursor to more significant sales. EmberCN suggested that the funds came from institutional placements of the PUMP token, not active selling.

Community Divided: Skepticism, Support, and Calls for Audits

Responses from the community to Sapijiju’s clarification were mixed. While some individuals questioned the transparency of the statements, others defended Pump.fun’s autonomy in managing its treasury.

X user Voss observed potential contradictions in Sapijiju’s assertion, noting that although he claimed a non-involvement in transfers, he also mentioned treasury management. “Definitely didn’t just contradict yourself on a post you had 10 hrs to respond to,” Voss commented.

Another user, EthSheepwhale, dismissed Sapijiju’s explanation, alleging that the actions constitute “price manipulation via airdrops.”

CoinGecko data indicates that the PUMP token trades at $0.002714, down 32% from its ICO price of $0.004 and nearly 70% lower than its peak in September at $0.0085.

Some community members sympathized, arguing that the fundamental issue is the lack of clarity regarding reserves. User Matty.Sol remarked that Pump.fun has the right to utilize its revenues and proceeds from the ICO as it deems fit. “Nothing wrong even if it’s true. It’s your own revenue tho,” Matty noted.

User Oga NFT stated that moving USDC is standard procedure post-ICO and questioned whether USDC reserves properly supported the circulating supply.