The Solana-based meme coin launching and trading platform, Pump.fun has again sparked a controversy with deposited a staggering 117,913 SOL – approximately $18.26 million – to the cryptocurrency exchange Kraken within a two-hour window. This move follows a pattern that has raised eyebrows and ignited heated discussions within the Solana community.
According to a post from Lookonchain, Pump.fun has deposited a cumulative total of 3,097,265 SOL – equivalent to $575 million at an average price of $186 per SOL – to Kraken since its inception. Additionally, the platform sold 264,373 SOL for 41.64 million USDC at an average price of $158 per SOL.
This move could be an attempt to lock in profits or hedge against market volatility, especially as Solana’s price has fluctuated dramatically in the past two months.
Pump.fun has long been a dominant force in the Solana ecosystem with it responsible for over 70% of token launches and 56% of decentralized exchange (DEX) transactions on the network. The ease of use and low entry barriers have made Pump.Fun a go-to for creators while marking a record of over 45,000 tokens in a single 24-hour period earlier this year.
However, these latest actions have sparked significant backlash from the Solana community with many accusing the platform of extracting liquidity without reinvesting in the ecosystem.
The latest controversy echoes earlier concerns raised in October 2024 when the platform sold over 503,343 SOL ($78 million) at the time – as a source of market instability. Such sales have historically led to panic selling, margin calls, and liquidity pool disruptions in the fragile markets.
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