Pumpfun Faces Accusations Amid Large USDC Transfers and Falling Token Price

Pumpfun is under renewed scrutiny as on-chain analysts flag massive USDC transfers allegedly tied to its ICO treasury, fueling accusations of price manipulation. According to blockchain monitoring platform EmberCN, the project moved 75 million USDC to Kraken within eight hours, bringing total transfers to 480 million USDC. While the Pumpfun team insists these transactions are routine treasury operations, on-chain data shows Kraken later forwarded 69.26 million USDC to Circle, a move experts interpret as likely sell pressure.

Additional reports from Lookonchain reveal that the team has already sold $757 million in SOL between May 2024 and August 2025, further intensifying concerns about sustained offloading activity. These large transfers come at a time when the platform’s revenue has sharply declined—from $136 million in January to just $38 million, signaling a significant drop in user engagement.

Co-founder Sapijiju has firmly rejected the accusations, stating that the USDC reallocations were part of standard treasury management aimed at extending the company’s runway and reinvesting into operational growth. He emphasized that Pumpfun has “never directly worked with Circle,” pushing back against claims that the sales were coordinated dump events.

However, the controversy threatens to undermine trust in Pumpfun’s buyback initiative launched in September to stabilize the PUMP token. Despite ecosystem upgrades, including the Project Ascend program—which restructured fees to incentivize creators—and a rare move by Fitell Corporation to add PUMP to its treasury, market sentiment remains bearish.

Since peaking at $0.00898 after its ICO, the PUMP token has dropped to $0.00291, marking a 40% decline in the past month. Even with institutional interest and platform improvements, the token continues to struggle, leaving investors wary as allegations and declining metrics cast uncertainty over Pumpfun’s long-term prospects.