Pump.fun Sold $436M USDC As Revenue Fell 53% Since October Crypto Crash

Memecoin launchpad Pump.fun has reportedly cashed out greater than $436 million in stablecoins since October’s report crypto market crash throttled buying and selling exercise and slashed the platform’s month-to-month income.

Since Oct. 15, the Solana-based memecoin launchpad transferred $436 million in USDC (USDC) stablecoins to cryptocurrency alternate Kraken, signaling the platform’s operators had been cashing out, according to blockchain information platform Lookonchain.

Pump.fun started transferring hundreds of thousands in stablecoins to the alternate every week after the record $19 billion October crypto market crash had reduce speculative urge for food amongst memecoin traders.

Pump.fun’s month-to-month income fell under $40 million for the primary time since July, dropping to $27.3 million in November, down 53% from September’s $58.9 million, according to information from DefiLlama.

Cointelegraph contacted Pump.fun for touch upon the explanation behind the promoting and whether or not the platform plans future token liquidations. A spokesperson for Pump.fun mentioned the “related crew” is engaged on a remark and can reply “after they have the time.”

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Is Pump.fun’s income nonetheless pressured by the dynamics of the $19 billion market crash?

Pump’s large-scale transfers triggered criticism amongst crypto traders, who noticed it as a possible precursor for extra promoting strain from the platform.

Memecoin buying and selling exercise had been trending down earlier than the October market crash, which “accelerated” the slowdown, in line with Nicolai Sondergaard, analysis analyst at crypto intelligence platform Nansen.

“Retail received burned repeatedly over the previous few months, so the drop-off we’re seeing now’s a continuation of that,” the analyst informed Cointelegraph, including:

“This additionally isn’t the primary time we’ve seen stories of huge sell-offs from Pump.fun, so it wouldn’t be shocking in the event that they continued promoting from their holdings.”

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The Pump.fun-tagged cryptocurrency pockets nonetheless holds about $855 million value of stablecoins and $211 million value of Solana (SOL) tokens, according to blockchain information platform Arkham. 

The $436 million switch was doubtless a withdrawal fairly than a direct sell-off, in line with onchain analyst EmberCN, who wrote that the funds got here from institutional personal placements of the $PUMP token in June at a value of $0.004.

“Pump.fun transferring like a full-time liquidation machine whereas everybody else is out right here ‘shopping for dips’ that by no means cease dipping,” crypto investor SK wrote in an X put up.

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