A new on-chain report from Lookonchain has reignited debate around Pump.fun’s treasury activity. But the team behind the memecoin launchpad is openly rejecting the claims, calling the circulating numbers “misinformation” and insisting the large transfers reflect internal treasury management, not cash-outs. Lookonchain’s report surfaced major USDC and SOL outflows over the last year, sparking speculation across X. Pump.fun quickly responded, denying any wrongdoing and arguing that the movements stem from reorganizing treasury funds raised during the PUMP ICO. The conflicting narratives are now driving one of the platform’s biggest transparency tests to date. Lookonchain Reports Over $1B in Combined USDC + SOL Movements Lookonchain’s thread presents a detailed breakdown of on-chain activity involving Pump.fun wallets. The core claims: 436.5M USDC sent to Kraken since October 15 Between October 15 and today, Lookonchain tracked 436.5M USDC flowing from Pump.fun-linked wallets into Kraken. The on-chain flow also showed: 537.6M USDC leaving Kraken and moving into Circle through wallet DTQK7G A nearly matching inflow/outflow pattern that raised questions around whether Pump.fun was off-ramping proceeds Lookonchain framed the activity as part of a broader pattern of exchange deposits and potential cash-outs. It appears https://t.co/C909I8882s has cashed out at least 436.5M $USDC since Oct 15. Since Oct 15, https://t.co/C909I8882s has deposited 436.5M $USDC into#$Kraken. During the same period, 537.6M $USDC flowed from #Kraken to #Circle through wallet DTQK7G. Between May 19, 2024… pic.twitter.com/WQGnUcA8l4 — Lookonchain (@lookonchain) November 24, 2025 4.19M SOL sold between May 2024 and August 2025 The report also highlighted long-term SOL selling: 4.19M SOL sold in total since May 19, 2024 Valued at $757M at an average price of $181 Of that: 264,373 SOL was sold directly on-chain (~$41.64M) 3.93M SOL (~$715.5M) was deposited into Kraken This multi-year accumulation of transactions intensified concerns that Pump.fun has been liquidating assets steadily. The thread triggered immediate reactions across X, from curiosity to outright FUD, partly fueled by its precise numbers and the size of the movements. Pump.fun Responds: “This Is Misinformation” Pump.fun publicly rejected Lookonchain’s interpretation. In multiple posts, the team stated that: The USDC movements were part of internal treasury management The funds originated from the PUMP ICO Transfers involved reorganizing liquidity across wallets The platform has never worked directly with Circle, despite the flows Lookonchain connected to Circle-related wallets No evidence supports the idea of coordinated off-ramps or cash-outs by the founders The team’s position is clear: the transactions represent corporate bookkeeping, not dumping. Pump.fun emphasized that the company is actively managing its “runway,” reallocating USDC to support growth, operations, and business reinvestment. They called Lookonchain’s framing inaccurate and misleading, sparking debate over how much on-chain analysis can infer about corporate treasury behavior. A Closer Look at Treasury Management Claims Pump.fun’s defense hinges on one central explanation: The USDC from the PUMP ICO is being moved across internal wallets as part of structured treasury management. The team provided additional context: 1. Funds were reorganized across multiple treasury wallets The USDC wasn’t withdrawn into cash, according to Pump.fun, but redistributed for operational planning and financial management. 2. No direct relationship with Circle While Lookonchain identified USDC eventually reaching Circle’s mint/burn pathways, Pump.fun insists those flows do not imply a business relationship. Many large exchanges routinely use Circle for settlement. Kraken → Circle flows do not necessarily indicate Pump.fun’s involvement beyond depositing to Kraken. complete misinformation from @lookonchain again. $0 have been cashed out – we're not involved in the transactions between Kraken and Circle that you're alleging us to be a part of. What's happening is a part of pump's treasury management, where USDC from the $PUMP ICO has been… https://t.co/qd6GUnIxKH — Sapijiju (@sapijiju) November 24, 2025 3. Treasury tokens from the ICO are being used for runway Pump.fun states the PUMP ICO raised significant capital, and that treasury diversification is part of long-term sustainability. They argue it is normal for companies to: Move funds between wallets Rebalance holdings Use centralized exchanges for treasury operations And adjust capital allocations year-to-year The team’s stance is that nothing in the transactions signals mismanagement or off-ramping. Why the Report Triggered FUD So Quickly The crypto space reacts fast, especially when a thread highlights millions moving through exchanges. Three factors drove the rapid bearish sentiment: Large Numbers Seeing $436M USDC and 4.19M SOL tied to one protocol creates immediate alarm, regardless of context. Kraken Deposits In the industry’s eyes, CEX deposits often equal “preparing to sell.” The nuance behind treasury management rarely reaches the same virality. SOL Sales Timeline The SOL sales span over a year, but were summarized in one thread, amplifying the shock. Together, these points created a narrative that Pump.fun was “cashing out,” even before the team responded. Ongoing Debate: Transparency vs. Interpretation This situation illustrates a recurring tension in crypto: On-chain data shows what happens. But it doesn’t always show why it happens. Lookonchain’s report is precise in tracking transactions. But Pump.fun argues the interpretation misses internal context. This raises several questions: Should protocols proactively disclose treasury management updates? Should analysts label findings more cautiously when intent is unknown? Should treasury wallets be publicly flagged to avoid misinterpretation? How should projects communicate large movements without triggering community panic? These debates will likely continue as protocols grow more sophisticated and their treasuries scale. Pump.fun hasn’t announced further clarification, but several things are likely: 1. More transparency After this level of scrutiny, protocols often publish updated treasury overviews or dashboards. 2. Continuous monitoring Analysts on X will keep watching Kraken-linked wallets for any new deposits or sales. 3. Community stabilization The initial wave of FUD is cooling as the team’s explanation circulates. Market sentiment typically normalizes once context becomes clearer. 4. Growth still accelerating Despite the noise, Pump.fun remains one of the most active platforms in Solana’s ecosystem, powering tens of thousands of launches monthly. Treasury events rarely slow activity unless tied to confirmed misconduct, and there is no evidence of that here. Disclosure: This is not trading or investment advice. 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