Pump.fun Co-Founder Strikes Back at ICO Cash Out Allegations – Claims “Misinformation!”

by

Pump.fun’s co-founder, Sapijiju, has slammed accusations that the platform cashed out hundreds of millions in stablecoin, dismissing them as “complete misinformation” while standing firm on social media to clear his name.

  • Sapijiju claims that no funds were cashed out, calling the allegations utterly false.
  • The flagged movements, according to him, were part of internal treasury management at Pump.fun.
  • Lookonchain had alleged that large sums were deposited into Kraken, followed by funds moving from Kraken to Circle via an identified wallet.

Sapijiju was quick to refute the charges, calling them “complete misinformation,” stating that Pump.fun had no involvement in any cash-out activity. The co-founder also denied any connection to transactions tied to the well-known exchanges Kraken and Circle, which had been pointed out by the on-chain analytics account Lookonchain.

The transactions in question, Sapijiju explained, were merely part of Pump.fun’s treasury management – the company was simply redistributing stablecoin raised from its initial coin offering (ICO) into different wallets, in an effort to reinvest operational funds back into the business. He also emphasized that Pump.fun has “never directly worked with Circle.”

Lookonchain’s accusations claimed that Pump.fun had deposited large sums into Kraken and then moved funds to Circle, all while allegedly selling off a substantial amount of the platform’s native blockchain token during a separate multi-month period.

Sapijiju’s Defense Faces Mixed Reactions

The responses from the community were anything but unanimous. While some applauded the co-founder’s attempt to engage directly with the public, others pointed out an apparent contradiction. They questioned how the company could deny involvement in Kraken and Circle transactions, yet admit to redistributing funds raised from the ICO. They were especially skeptical of the claim that treasury management was simply being misinterpreted as a cash-out.

Critics of Pump.fun’s approach have raised concerns about potential declines in token value, with some members of the community demanding proof that stablecoin reserves are indeed backing the circulating supply in full. Because, you know, “trust us” doesn’t always cut it when millions are on the line.

The ICO earlier this year was a hit, raising a substantial amount in mere minutes after offering up part of the token supply. Initially, one-third of the total token supply was set aside for the ICO, but not all of the public allocation was sold, leaving some wondering where the rest of the tokens went.

Adding fuel to the fire, the exchange Gate.io had canceled the pre-market listing of the token just days before the ICO, refunding presale participants and citing “discussions” with the Pump.fun team as the reason behind their decision. Very convenient, right?

Last year, the platform faced some rather unpleasant issues after their Solana-based meme coin launchpad was temporarily halted following a series of disturbing livestream incidents. These included threats of self-harm and violence, all tied to token performance, leading Pump.fun to scramble and expand its moderation team to handle the overwhelming demand. Some might say, when you’re playing with fire, you should at least have a fire extinguisher on hand.

Read More

2025-11-25 19:21