TLDR
- Pump.fun transferred $75 million in USDC to Kraken on November 27.
- The project has moved a total of $480 million to Kraken over the last 12 days.
- Analysts observed that the latest flow followed a similar redemption pattern reported earlier.
- About $69.26 million USDC was sent from Kraken to Circle shortly after the deposit.
- Co-founder Sapijiju stated the transactions are routine treasury redistributions.
Pump.fun transferred another $75 million in USDC to Kraken on November 27. This brings total transfers over 12 days to $480 million. The funds originated from its initial coin offering, according to blockchain analysis by EmberCN.
Observers linked this latest transfer to earlier patterns in recent stablecoin activity. Right after the deposit, $69.26 million in USDC moved from Kraken to Circle. Analysts suggest these movements align with USDC redemptions seen in past transactions.
Pump.fun Moves Mirror Earlier Kraken Activity
The current transfer mimics a $405 million deposit made earlier this week, also followed by a large Circle withdrawal. On November 24, $466 million left Kraken shortly after the deposit, raising similar questions. Analysts closely tracked these transactions due to their consistent sequencing.
The ongoing flows again highlight concern about Pump.fun’s treasury behavior. EmberCN confirmed all funds came from Pump.fun’s ICO wallet. The team has not disclosed the exact reason for these synchronized exchanges.
Co-founder Sapijiju denied speculation surrounding treasury sell-offs or redemptions. He explained, “These are standard treasury redistributions, not withdrawals or cash-outs.” He added that Pump.fun has never coordinated directly with Circle.
ICO Proceeds and Token Concerns
Pump.fun’s token allocations continue to attract scrutiny from investors and the wider crypto community. The project raised $720 million by selling 18% of PUMP‘s one-trillion supply at $0.004. Early buyers and insiders held over half of the supply when trading began.
This allocation structure led to concerns over potential price manipulation at launch. Critics said the setup gave unfair market advantages to private investors. These issues reignited after each large USDC transfer from project-controlled wallets.
The token’s current price stands at $0.00294, reflecting a 38% monthly decline. Price movement has closely tracked these recent treasury shifts. The project’s model and distribution remain under the spotlight.
Revenue Model and Legal Scrutiny
Pump.fun has earned over $910 million in revenue since its inception, based on Dune Analytics data. However, platform activity has slowed recently, fueling concerns about sustainability. Many community members have also questioned the success rate of created tokens.
Legal pressure is growing against Pump.fun in the U.S. Courts in New York are reviewing class-action lawsuits against the platform. Allegations include unregistered token sales and misleading promotional claims.
Meanwhile, reports of side wallet activity and insider trades have circulated in online discussions. These concerns have fueled market fear and hesitation among traders. Ongoing lawsuits could impact investor confidence further.
Coincodex analysts reported extreme market fear around Pump.fun, using a Fear & Greed Index score of 15. They expect volatility to continue through December as traders remain cautious. Forecasts suggest further price weakness without a shift in sentiment.
At press time, Pump.fun had not issued a new statement following the latest $75 million transfer. The team has remained consistent in its defense of treasury operations. No regulatory findings have yet confirmed wrongdoing.
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