Pump.Fun moved $436.5M in USDC to Kraken since mid‑October 2025, a sequence of on‑chain transactions that coincided with a 24% drop in $PUMP over seven days.
On‑chain records indicate a withdrawal of $436.5M in USDC from addresses associated with Pump.Fun to Kraken; subsequently, about $466M reportedly moved from Kraken to Circle, according to analysts such as EmberCN and Lookonchain. USDC is a stablecoin pegged to the dollar designed to maintain a 1:1 parity with that currency.
The sell‑off was not limited to USDC: since May 2024, Pump.Fun reportedly liquidated 4.19M SOL, for a value close to $757M, with $715.5M deposited at Kraken, underscoring the scale of the repositioning.
On the operational revenue side, the platform recorded a 53% contraction in monthly revenues, from $58.9M in September to $27.3M in November, a figure that reflects lower activity in its token‑launch business model.
Regarding the native token, $PUMP fell 24% in seven days, with an additional 4% decline in 24 hours to $0.0026, leaving it roughly 35% below its all‑time high and below the $0.004 price paid by institutional investors in a private sale in June 2025 that reportedly raised about $500M.
Market, product and regulatory impact
The liquidation triggered adverse reactions in the community and in the memecoin market. Pump.Fun’s official communication was scant after the moves, fueling criticism about prioritizing liquidity extraction over community incentives, the absence of airdrops and a lack of marketing.”.
To boost activity, the platform launched “Mayhem Mode”, based on AI to simplify launches; however, the effect was marginal, with daily launches rising only from 17,300 to 17,800, suggesting limited immediate impact on growth.
Pump.Fun faces several class‑action lawsuits in New York accusing it of selling unregistered securities and alleging misleading information about potential returns, which adds legal and compliance pressure.
In terms of token strategy, Pump.Fun has announced plans for an initial token offering scheduled for July 12, 2025; the figures vary by source, placing the fundraising intent between $1.0B and $1.3B, with a fully diluted valuation estimated at $4B, reserving 25% for public sale and 10% for airdrops. A revenue‑sharing model for $PUMP holders has also been proposed as a possible retention measure.
The massive liquidity moves and the token drop have highlighted tensions between monetization, transparency and compliance at Pump.Fun.
