In summary
- Pump Fun sent over $94M worth of Solana to Kraken in the last month, generating selling speculation.
- Lookonchain clarified that it could not confirm whether Pump Fun sold Solana on Kraken.
- Pump Fun has generated $220M in revenue since January 2024, dominating Solana DEX transactions.
Pump.fun, Solana’s meme Cryptocurrency launch platform, sent another $22 million in Solana to Kraken yesterday. The latest outflow brings the total to more than $94 million sent by the Pump Fun Fee Account to Kraken in the last month, according to Blockchain data on Solana’s block explorer Solscan.
The most recent exit fueled speculation that Pump Fun is selling Solana on centralized exchanges, a move that some feel could be suppressing Solana’s price. That speculation was quickly answered by Alon, co-founder of Pump Fun, who indicated that the sales claims were “spreading misinformation.”
“Did you know that you can send assets to an exchange without the intention of selling those assets?” said on X (formerly known as Twitter) in response to popular on-chain data account Lookonchain’s claim that Pump Fun sold Solana. Lookonchain later issued a correction, clarifying that it could not verify the Solana sale. The Pump Fun founders did not immediately respond to Decrypt’s request for comment.
The popular memecoin launchpad has been a standout crypto app this cycle, generating more than $220 million in revenue since its creation in January 2024, according to data from DefiLlama.
A notable percentage of that revenue has presumably been sold or moved off-chain, drawing community ire since June.
“Pump fun developers are actively selling the money they are Mining in USDC, taking money out of the hands of retailers; If this pace of value destruction continues, it becomes a pretty significant headwind for minting on Solana,” cryptocurrency enthusiast 0xSisyphus said in June.
As such, Pump Fun has been compared to the Ethereum Foundation, which is often cited for sending Ethereum to exchanges, a suitable scapegoat for Ethereum’s relatively underperformance compared to its cryptocurrency peers Bitcoin and Solana.
Whether Pump Fun is using Solana as collateral for leveraged trades on Kraken or simply selling, the asset has continued to gain traction alongside the platform’s rise. Solana recently hit an all-time high, rising above $260 before pulling back in recent days.
Since its inception, nearly 4 million tokens have been launched on Pump.fun, and the platform has accounted for more than 62% of Solana decentralized exchange (DEX) transactions in November.
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