• Pump.fun moved $436M in USDC to Kraken after October’s crypto market crash.
• Platform revenue fell 53% as memecoin demand and retail activity declined.
• The PUMP token dropped further despite large reserves and new AI Mayhem Mode.

Pump.fun, the Solana-based memecoin launchpad, has withdrawn more than $436 million in stablecoins following the record October crypto market crash that disrupted trading activity and reduced the platform’s monthly revenue.

According to blockchain data provided by Lookonchain, since October 15, Pump.fun transferred $436 million in USDC to the crypto exchange Kraken, which suggests that its operators were cashing out. The moves started about a week following the $19 billion market meltdown, which significantly curtailed the speculative interest among memecoin traders.

Pump.fun Faces 53% Revenue Fall and Growing Uncertainty

Revenue data also display a steep fall. DefiLlama reported that Pump.fun made $27.3 million in November, compared to an amount of $58.9 million in September. This is a reduction of 53% and the lowest revenue since July. The drop is an indicator of lower demand to launch more memecoin projects on Solana at a time of dwindling retail activity.

Source: DefiLlama

Pump.fun failed to provide a clear explanation. A spokesperson stated that the concerned team would get back when they are available. No additional information was given. This communication failure contributed to market panic and speculation of probable further liquidations.

According to analysts, interest in memecoins was already waning. According to Nicolai Sondergaard of Nansen, retail traders had experienced a number of losses in recent months. He explained that the crash in October was a boost to the reduction and that many traders were forced out of the risky assets.

“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.”

Despite such huge outflows, Pump.fun-linked wallets have considerable reserves. According to data by Arkham Intelligence, the wallets hold $855 million in stablecoins and $211 million in Solana. These deposits offer liquidity, yet have failed to trigger fears regarding the new transfers.

Source: Arkham

Market Reaction Turns Negative as Token Extends Decline

Onchain analyst EmberCN revealed that the transfer of the $436 million was probably a withdrawal of funds collected in institutional private placements of the $PUMP token in June at a price of $0.004. He said that the movement might not indicate an instant sale. The transfer extent, however, still raises concerns with market participants.

The response of social media has been negative. Pump.fun investor SK wrote that it is moving like a full-time liquidation machine as traders express increased frustration on the part of the team for not communicating more clearly.

The PUMP token is in a downward trend. According to CoinMarketCap data, it has declined by 22.77% in the last week. The token is trading at $0.0026, which is lower than the June institutional selling price. It also declined by 3.97% in the last 24 hours, continuing its losses.

The recently launched feature of pump.fun is Mayhem Mode, an AI-based token launch tool. The update slightly increased the number of tokens being launched each day, 17,300-17,800, as per The Block, but failed to change the overall activity. The absence of market confidence is due to investors awaiting a decisive statement by the platform.

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