Kraken Sees Massive $405M USDC Inflow from Pump.fun Amid Token Downturn

Solana-based meme coin launchpad Pump.fun has withdrawn $436.5 million in USDC since mid-October, with $405 million deposited into Kraken and an additional $466 million later transferred to Circle. Analysts suggest this movement likely represents a cash-out strategy, as the funds stem from Pump.fun's private sale of PUMP tokens to institutional investors in June, followed by a $500 million ICO in July. The significant transfers have raised concerns within the crypto community about the project's liquidity and future stability.

Pump.Fun Withdraws $436.5M USDC Amid Token Decline, Sparking Community Concerns

Solana-based meme coin launchpad Pump.fun has moved $436.5 million in USDC since mid-October, with $405 million deposited into Kraken and $466 million subsequently transferred to Circle—a maneuver analysts interpret as a likely cash-out. The funds originate from Pump.fun's June private sale of PUMP tokens to institutional investors, which preceded a $500 million ICO in July.

The project's official communications have gone dark for over a week, fueling speculation. Blockchain tracker Arkham reveals additional outflows totaling 537.6 million USDC from Kraken to Circle since October, compounding community unease about the team's financial operations.

PUMP tokens have slumped 24% in seven days, underperforming broader meme coin markets. The withdrawals coincide with growing scrutiny of Solana-based launchpads following multiple rug-pull incidents this quarter.

Pump.fun USDC Cashout and SOL Transfers Spark Market Speculation

Unusual on-chain activity tied to Pump.fun has ignited debates across the solana community. Since October 15, the platform has moved 436.5 million USDC directly to Kraken, alongside 537.6 million USDC routed through Circle via wallet DTQK7. These transactions coincide with the sale of 4.19 million SOL ($757 million at $181 avg) between May 2024 and August 2025, including 3.93 million SOL ($715.5m) deposited to Kraken.

Analysts diverge on interpretations—some view this as treasury management, while others suspect undisclosed strategic maneuvers. The scale of movement, particularly the Kraken-linked SOL transfers, has fueled theories of a coordinated exit strategy.

Pump.fun Co-Founder Denies $436M Cash-Out Allegations, Cites Treasury Management

Pump.fun's pseudonymous co-founder Sapijiju has dismissed claims of a $436 million USDC cash-out as "complete misinformation," countering blockchain analytics firm Lookonchain's report. The disputed transfers, initially flagged as potential liquidations, were characterized as routine treasury movements for operational needs and runway management.

On-chain data reveals Pump.fun retains substantial reserves, with over $855 million in stablecoins and $211 million in SOL. The funds in question originated from the PUMP token's initial coin offering, according to Sapijiju's X post. Market observers remain divided on the interpretation of these wallet activities.

The controversy highlights the challenges of interpreting blockchain transactions without full context. Pump.fun maintains it has never directly transacted with Circle, emphasizing the internal nature of these stablecoin redistributions.

Kraken Launches Crypto Debit Card in EU & UK as Best Wallet Eyes Its Own ‘Best Card’

Kraken has introduced its Krak Mastercard debit app across the European Union and the United Kingdom, enabling real-time spending of multiple cryptocurrencies wherever Mastercard is accepted. The card provides 1% cashback on purchases and supports over 400 currencies across 160 countries. This MOVE highlights how regulated exchanges are expanding crypto's utility beyond trading into everyday payments and merchant adoption.

Meanwhile, Best Wallet aims to capture 40% of the wallet market share by 2026, leveraging Fireblocks MPC security and presale access. Its planned ‘Best Card’ seeks to challenge exchange-centric debit models. The Best Wallet Token ($BEST) presale has already raised over $17.5 million, with the offering closing in just two days.

Kraken’s announcement on X teased upcoming features, including a 10% flexible APY, signaling further innovation in crypto-financial products. The shift from speculative trading to practical payments marks a significant evolution in cryptocurrency adoption.