Memecoin launchpad Pump.fun has cashed out more than $436 million in stablecoins since October’s record crypto market crash throttled trading activity and slashed the platform’s monthly revenue.
Since Oct. 15, the Solana-based memecoin launchpad transferred $436 million in USDC (USDC) stablecoins to cryptocurrency exchange Kraken, signaling the platform’s operators were cashing out, according to blockchain data platform Lookonchain.
Pump.fun began transferring millions in stablecoins to the exchange a week after the record $19 billion October crypto market crash had cut speculative appetite among memecoin investors.
Pump.fun’s monthly revenue fell below $40 million for the first time since July, dropping to $27.3 million in November, down 53% from September’s $58.9 million, according to data from DefiLlama.
Cointelegraph contacted Pump.fun for comment on the reason behind the selling and whether the platform plans future token liquidations. A spokesperson for Pump.fun said the “relevant team” is working on a comment and will respond “when they have the time.”
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Is Pump.fun’s revenue still pressured by the dynamics of the $19 billion market crash?
Pump’s large-scale transfers triggered criticism among crypto investors, who saw it as a potential precursor for more selling pressure from the platform.
Memecoin trading activity had been trending down before the October market crash, which “accelerated” the slowdown, according to Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen.
“Retail got burned repeatedly over the past few months, so the drop-off we’re seeing now is a continuation of that,” the analyst told Cointelegraph, adding:
“This also isn’t the first time we’ve seen reports of large sell-offs from Pump.fun, so it wouldn’t be surprising if they continued selling from their holdings.”
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The Pump.fun-tagged cryptocurrency wallet still holds about $855 million worth of stablecoins and $211 million worth of Solana (SOL) tokens, according to blockchain data platform Arkham.
The $436 million transfer was likely a withdrawal rather than an immediate sell-off, according to onchain analyst EmberCN, who wrote that the funds came from institutional private placements of the $PUMP token in June at a price of $0.004.
“Pump.fun moving like a full-time liquidation machine while everyone else is out here ‘buying dips’ that never stop dipping,” crypto investor SK wrote in an X post.
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