As reported by a popular blockchain analytics service, Lookonchain, seen on Solscan Pumpfun, has withdrawn $15M worth of USDC from the SOL sale and deposited it to the Kraken exchange. The transaction took place a few hours ago, and some analysts suggested that Pumpfun may be preparing for another cash-out in large quantities.
3 hours ago, #Pumpfun deposited the 15M $USDC obtained from their $SOL sale into #Kraken. Are they planning to cash out?https://t.co/eO2OHLWL0c pic.twitter.com/c4YTgrrUgV
— Lookonchain (@lookonchain) October 31, 2024
Possible Consequence of the $15M Transfer
Pumpfun could soon be seeking to liquidate. Such large-volume transfers are not exceptional when provided by various well-used crypto platforms; however, this specific transfer can indicate Pumpfun’s intention to sell a significant part of its holdings. This speculation is based on the history of transactions in the Pumpfun wallet that have had similar giant fluctuations in the past months but not as large as they were this time.
Community Reaction and Concerns
The crypto community has raised concerns regarding the reason behind the transfer, with more concerns arising about whether the memecoin platform converts the transferred USDC into fiat. Since this platform has many users and engages many people directly or indirectly, switching to a cash-out model may have negative consequences, particularly if funds are connected to other market operations or trading. At the moment, it still lacks clarity whether Pumpfun has a plan to make a cash-out or whether the transfer was made for other business functions. For now, the platform still retained a substantial amount of funds in assets, 350,054.75 SOL which is equivalent to approximately $59.3 million and an additional USDC of around $22.8 million.
