Fast Facts
-
Allegation Rejection: Pump.fun’s co-founder, Sapijiju, labeled the $436.5 million USDC cash-out claims by Lookonchain as “complete misinformation,” asserting that no funds had been withdrawn.
-
Treasury Management: The USDC movements were clarified as part of internal treasury management for reinvesting from the PUMP token ICO, not direct cash-outs or partnerships with Circle.
-
Mixed Community Reactions: While some find reassurances about ongoing engagement positive, others raised concerns over the transparency of the treasury management strategy and the potential for instability.
-
Controversial ICO: Pump.fun’s ICO raised $500 million in 12 minutes amidst controversy, including a sudden pre-market listing cancellation by Gate.io, prompting scrutiny of the project’s operations and strategies.
Pump.fun Co-Founder Denies Cashing Out ICO Funds, Calls Allegations ‘Misinformation’
Pump.fun’s co-founder, Sapijiju, has strongly rejected accusations of cashing out $436.5 million in USDC. Instead, he labeled the claims as “complete misinformation.” Sapijiju emphasized that “$0 has been cashed out” and denied any involvement with the transactions linked to the crypto exchange Kraken and stablecoin issuer Circle.
Earlier reports by on-chain analytics platform Lookonchain raised alarms about significant USDC movements. Sapijiju clarified that these transactions were part of internal treasury management. Specifically, they involved restructuring funds from the PUMP token initial coin offering (ICO) to support reinvestment in the business.
Lookonchain’s claims indicated that since mid-October, the company had deposited large sums into Kraken, with additional transfers moving from Kraken to Circle. Furthermore, they reported that Pump.fun had sold large amounts of SOL, raising mixed reactions from the community.
Some observers expressed concern about the potential contradiction in Sapijiju’s statements. They noted that while the firm distanced itself from Kraken and Circle, it acknowledged the USDC movements tied to the PUMP ICO treasury management. Others welcomed the transparency, hoping it signaled an ongoing commitment to community engagement.
Concerns over treasury management persist, as critics fear it could be mistaken for cash-outs. Skeptics also seek reassurance that the USDC reserves adequately back the circulating supply of the token.
Pump.fun itself has faced scrutiny since its ICO in July, where it raised $500 million in 12 minutes. The controversial launch marked significant interest but also revealed vulnerabilities, such as a sudden pre-market listing cancellation by crypto exchange Gate.io.
As Pump.fun navigates these complex challenges, industry experts suggest that clarity around treasury practices could bolster confidence. The platform aims to solidify its position in the rapidly evolving landscape of cryptocurrency development.
Continue Your Tech Journey
Learn how the Internet of Things (IoT) is transforming everyday life.
Access comprehensive resources on technology by visiting Wikipedia.
Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
CryptoV1
