Pump.fun Faces Backlash After $436 Million Withdrawal, PUMP Token Plunges
- Pump.fun withdraws $436.5 Million USDC since October, sparking community backlash over transparency and fund use.
- PUMP token falls over 22% in a week, trading at $0.002626, below the June private sale price.
- Large SOL sales totaling $757M from May 2024 to August 2025 raise further community concerns.
Pump.fun, a memecoin launchpad built on the Solana platform, has found itself at the center of a controversy regarding the withdrawal of a large sum of USDC worth $436.5 million since October 15.
Analysis by crypto researcher EmberCN showed that the group withdrew $405 million USDC to Kraken in the last week and also transferred $466 million USDC from Kraken to the USDC pool at Circle. This action reportedly signifies a large withdrawal of funds.
According to reports, this money came from the private sale of PUMP tokens by Pump.fun in June 2024. The project launched its PUMP token in July and raised $500 million in less than 12 minutes in the initial coin offering. In spite of this big fund movement, the X account of Pump.fun has been mute for over a week without explanations.
Pump.fun Sparks Community Backlash
Since mid-October, the network has transferred $436.5 million of USDC to Kraken, followed by $537.6 million transferred from Kraken to Circle, as per Arkham insights. The protocol has also sold 4.19 million SOL from May 2024 to August 2025, worth approximately $757 million.
According to Lookonchain data, approximately 264,373 SOL tokens were sold on chain at a value of about $41.64 million, and about 3.93 million SOL tokens (valued at about $715.5 million).
The community response has been rather negative. A user posted that Pump.fun has made over $1 billion in the last year without contributing to the community: “No airdrops, no marketing, no incentives” on X. Another community member reacted negatively to the founder Alon’s Q4 because it only benefits the Pump.fun community and not the users.
Also Read | Pmp.fun (PUMP) Price Analysis: Bullish Triangle Pattern Targets $0.0095
PUMP Token Sparks Community Concerns
The PUMP token has experienced reductions in value as the withdrawals continue. In the past week, the token has fallen in value by over 22% and is currently trading at $0.002626 against the $0.004 price at which the June private sale occurred.
Pump.fun has also launched the “Mayhem Mode” functionality, which makes use of AI technology in the context of token launches. However, according to The Block, there has been only a slight increase in the number of token launches per day from 17,300 to 17,800.
The community is also wary due to the poor communication of Pump.fun’s project, large withdrawals of funds, and losses of tokens. This not only reinforces the dangers of large-scale memecoins but also the risks of launch.
Also Read | Pump.fun Boosts Daily Buybacks to $990K While PUMP Faces Sharp Market Correction
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