Pump.fun’s SOL Deposits to Kraken Surpass $660 Million: Profit Cash out or Liquidity Play?
Pump.fun, a Solana-based memecoin launchpad and trading platform, has deposited over $660 million in SOL to Kraken. Is this a profit cash out or liquidity play?
Pump.fun, a Solana-based memecoin platform, has moved a staggering 132,180 SOL to Kraken. This transfer, worth about $20.87 million, happened on June 10. It’s part of a larger pattern of deposits to the exchange this year.
So far, pump.fun has deposited 2.47 million SOL, valued at $404.64 million, to Kraken. In total, the platform has sent 3.62 million SOL, or $660.5 million, to the exchange. According to Lookonchain, Pump.fun has sold 264,373 SOL for 41.64 million USDC. With only 3,610 SOL left in its fee account, its SOL holdings have significantly decreased. This could mean they’re taking profits or reallocating capital.
Why is Pump.fun sending so much SOL to Kraken? Some think it’s cashing out profits. Others believe it’s preparing for a rumored $1 billion token sale. A June 3 Blockworks report claims the sale will happen soon at a $4 billion valuation. However, Pump.fun hasn’t confirmed this on official channels.
Community reactions are mixed. critics question how the funds will be used. Developer 0xngmi wonders why they need to raise $1 billion when they’ve already made $675 million. The platform’s monthly revenues have dropped 66% as January. This decline might be why they’re reevaluating their capital strategy.
The token sale, if true, could be unnecessary. The platform’s revenues have fallen from $137 million in January to $46.6 million in May.
Whether this is a selloff or preparation for a token launch remains unclear. The market will have to wait and see.
