Kraken Sees $405M Inflow as Pump.fun Team Withdraws Amid Token Price Collapse

The Solana-based meme coin platform Pump.fun has executed a massive withdrawal of $436.5 million in USDC stablecoin since mid-October, with a staggering $405 million funneled directly into the Kraken cryptocurrency exchange in just the past week. This substantial capital movement coincides with a severe downturn in the price of the platform's native PUMP token, which has plummeted 24% and is now trading at approximately $0.0026. This valuation places it significantly below its initial private sale price of $0.004, eroding early investor value and raising serious questions about the project's financial management and long-term viability. On-chain analytics reveal a concerning pattern: funds deposited into Kraken appear to be part of a direct pipeline to Circle, the issuer of USDC, strongly suggesting a systematic conversion of crypto assets into traditional fiat currency. This activity points towards a major liquidity exit by the project's team or associated wallets. The timing and scale of these withdrawals, paired with the token's poor market performance, have ignited a wave of criticism from the crypto community. Observers and investors are scrutinizing the team's actions, with many alleging that the massive sell-off has directly contributed to the token's price suppression and lack of recovery. This incident underscores the high-risk, often opaque nature of the meme coin sector, even on established blockchains like Solana. It highlights critical issues of transparency and trust, where large, concentrated holders can dramatically impact market stability. For exchanges like Kraken, such large, one-directional inflows can signal significant market-moving events. The situation serves as a stark reminder for investors to conduct thorough due diligence, particularly regarding tokenomics, vesting schedules, and the track record of development teams behind new and speculative crypto assets. The fallout may prompt increased scrutiny from regulators and a more cautious approach from institutional players observing the ecosystem.

Pump.fun Team Withdraws $436M as PUMP Token Slides 24% Below Private Sale Price

Solana-based meme coin platform Pump.fun has moved $436.5 million in USDC since mid-October, with $405 million deposited into Kraken last week alone. The withdrawals coincide with a 24% price drop for PUMP tokens, now trading at $0.0026 - below their $0.004 private sale valuation.

On-chain data reveals a direct pipeline from Kraken to Circle, suggesting conversion to fiat. The project has drawn criticism for failing to deliver promised airdrops and incentives despite generating over $1 billion in revenue, including $757 million from solana token sales between May 2024 and August 2025.

Pump.fun Moves $436M in Stablecoins Amid Memecoin Revenue Collapse

Pump.fun, the Solana-based launchpad that fueled the memecoin frenzy, has quietly shifted $436 million in USDC to Kraken since mid-October. Blockchain data reveals a systematic offloading of stablecoins following October's $19 billion market wipeout, which decimated speculative activity across the sector.

The platform's revenue plummeted to $27.3 million in November—a 54% drop from September's $59 million peak. The transfers, first flagged by Lookonchain, suggest a strategic exit as trading volumes and user engagement dwindled. Critics speculate whether the outflows signal deeper instability or mere profit-taking.

Memecoins like DOGE, SHIB, and PEPE—once Pump.fun's lifeblood—now languish as risk appetite evaporates. The move mirrors broader crypto trends: institutional players pivot toward Bitcoin ETFs while retail traders retreat from hyper-speculative assets.

Pump.fun Denies $436M USDC Cash-Out Claims Amid Treasury Management Explanation

Pump.fun co-founder Sapijiju has dismissed allegations that the project moved $436 million in USDC to exchanges for liquidation, labeling the reports as "complete misinformation." Blockchain analytics firm Lookonchain had flagged the transfers, suggesting a potential cash-out, but Sapijiju clarified the funds were part of routine treasury management from the project's ICO.

The disputed transactions involved 436.5 million USDC sent to Kraken in mid-October and 4.19 million SOL sold between May 2024 and August 2025. Sapijiju emphasized these movements were internal wallet reorganizations, with no actual selling of assets. "$0 have been cashed out," he stated, denying any involvement in transactions between Kraken and Circle.

Treasury management is a standard practice for crypto projects, enabling budget planning and strategic reinvestment. The controversy highlights the scrutiny faced by blockchain projects over fund movements, even when operational explanations exist.

Kraken Expands into Consumer Banking with Crypto-Focused Financial Portal

Kraken has significantly upgraded its Krak app, transforming it from a crypto companion into a full-service financial platform. The update introduces features typically found in traditional fintech banking apps, including a Mastercard-powered debit card for European and U.K. users, offering up to 1% cashback redeemable in local currency or Bitcoin.

The platform now supports direct paycheck deposits, bridging the gap between wages, spending, and crypto investing. Kraken also launched Vaults, a savings product yielding over 10% APY, leveraging its staking infrastructure to appeal beyond crypto-native users.

This expansion follows Kraken's recent $800 million funding round, aimed at making Krak a globally accessible multi-asset platform. The MOVE signals Kraken's ambition to compete directly with traditional banks by integrating crypto into everyday financial activities.

Kraken Launches Krak Card in UK and EU with MiCAR License Backing

Kraken has introduced its Krak Mastercard debit card and accompanying app in the United Kingdom and European Union, marking a significant step in blending cryptocurrency with everyday financial transactions. The card supports spending across more than 400 crypto and fiat assets, offering users seamless access to their holdings. A standout feature is the 1% cashback reward on all purchases, redeemable in fiat or Bitcoin, with no foreign exchange or monthly fees.

The rollout is bolstered by Kraken's MiCAR license in the European Economic Area and its longstanding registration with the UK's Financial Conduct Authority. The firm positions the Krak Card as a challenger to traditional banking, with plans to integrate salary deposits and high-yield DeFi "Vaults" in the NEAR future.

Alchemy Pay Enhances RWA Platform with Kraken Integration for Tokenized Equities

Alchemy Pay has upgraded its real-world asset (RWA) investment platform, integrating Kraken's Pro API to provide institutional-grade liquidity for Backed's tokenized equities and ETFs. The move aims to democratize access to global markets, particularly in regions with limited brokerage options.

The collaboration leverages Alchemy Pay's payment network, Backed's tokenized products, and Kraken's liquidity infrastructure. Over 60 tokenized stocks are now accessible through the enhanced platform, unlocking what the company calls a "multi-trillion dollar RWA opportunity" for global users.

This development represents a significant step in bridging traditional finance with digital assets, offering improved trading conditions for tokenized versions of publicly traded securities. The integration comes as institutional interest in RWAs continues to grow across cryptocurrency markets.