Pump.fun co-founder Sapijiju has pushed back against allegations that the platform cashed out hundreds of millions of dollars in stablecoin, calling the claims โcomplete misinformationโ in a series of social media statements responding to on-chain analytics account Lookonchain.
Lookonchain had alleged that Pump.fun deposited large sums into cryptocurrency exchange Kraken and that funds were subsequently transferred to stablecoin issuer Circle via an associated wallet. The account also pointed to what it described as substantial on-chain sales and deposits of the platformโs native token over a separate multi-month period.
Sapijiju disputed the claims, denying any involvement in transactions linked to Kraken or Circle and asserting that no funds had been cashed out. According to the co-founder, the wallet movements flagged by Lookonchain were related instead to internal treasury management.
Stablecoin raised during Pump.funโs initial coin offering (ICO) was redistributed across company wallets, he said, so the funds could be reinvested into ongoing development and operations. Pump.fun, he added, has โnever directly worked with Circle.โ
Mixed Community Response
Reaction to the co-founderโs explanation was divided. Some observers noted what they described as inconsistencies between denying participation in Kraken- and Circle-related transactions while acknowledging the movement of ICO funds across treasury wallets.
Others welcomed the teamโs engagement, suggesting that on-chain treasury management is frequently misinterpreted as a cash-out event.
Critics remained skeptical, questioning the teamโs strategy and raising concerns about potential downward pressure on token value. Several community members called for greater transparency, urging Pump.fun to provide verifiable proof that circulating tokens remain fully backed by stablecoin reserves.
ICO Background and Earlier Challenges
Pump.funโs ICO earlier this year drew significant attention after selling out a portion of the token supply within minutes, according to public reports. One-third of the total supply had been earmarked for the offering, split between institutional buyers and the public sale, though only part of the public allocation was ultimately sold.
Days before the ICO, exchange Gate.io canceled its pre-market listing of the token and refunded presale buyers. The platform later said the decision followed discussions with the Pump.fun team, without providing further detail.
Pump.fun, a Solana-based meme coin launchpad, has also faced operational challenges. Last year, the platform briefly suspended its livestream feature after it was exploited for disturbing broadcasts, including threats of self-harm and violence tied to token performance.
The surge in livestream activity strained moderation tools, prompting Pump.fun to expand its moderation staff and enhance both automated and human oversight.
As scrutiny over blockchain project treasuries intensifies industry-wide, the ongoing debate surrounding Pump.funโs on-chain activity highlights the growing demand for verifiable transparency in token-backed ecosystems.
