Pump.fun sends $16M SOL to Kraken, cashing in as Solana memes show sign of life

Pump.fun, the meme coin launchpad on Solana that went viral last year, is once again making headlines after sending about $16 million worth of SOL to the crypto exchange Kraken, fueling speculation that the platform is taking profits amid renewed activity in the Solana meme coin ecosystem.

According to on-chain data shared on X by blockchain analytics platform Lookonchain, Pump.fun deposited 105,233 SOL worth $15.86 million at the time, to Kraken. This move takes the Pump.fun’s deposits to Kraken to 3,202,498 SOL, which is worth $591 million at $185 per SOL.

Pump.fun has become a major player in the Solana memecoin ecosystem since last year, offering users a simple interface to launch and trade meme tokens on the go. The platform reportedly earns a cut of trading fees and also benefits from tokens it launches, giving it ample opportunity profit from the wild swings of the meme coin market.

These recent deposits also suggest renewed interest in Solana memecoin projects.

Pump.fun deposits indicate changing investor mood

The consistent profit-taking by Pump.fun suggest that is proof that the platform regularly capitalizes on the cyclical meme coin hype, converting its SOL into stablecoins or fiat as interest spikes.

Roughly a week ago, Lookonchain reported that Pump.fun deposited 117,913 SOL worth $18.26 million, taking its Kraken deposits to 3,097,265 SOL($575 million). It also sold 264,373 SOL for 41.64 million USDC at $158.

On-chain data indicate that Pump.fun also made large deposits in early April, late March, February, and in January, all to Kraken. However, the recent deposits and the short interval between them have increased speculation, with some quarters accusing the platform of wider profit taking at the detriment of SOL.

Critics argue that meme coin platforms encourage reckless speculation and rug pulls. They also finger Pump.fun’s regular SOL transfers as doing more harm than good to Solana’s ecosystem.

Despite concerns over market manipulation and sustainability, Pump.fun’s transfers appear to align with renewed optimism around Solana’s meme coin economy.

Solana memecoins hemorrhaged value to scams and profit-taking

Memecoin projects, especially those hosted on Solana before now, have been relatively quiet following the sharp drop in market cap of President Donald Trump’s official memecoin, TRUMP, as well as that of his wife, MELANIA.

The market was further shaken following the collapse of the LIBRA project endorsed by Javier Milei, Argentina’s president, which rode on the popularity of the TRUMP memecoin.

LIBRA happened to be a scam and was reportedly launched by bad actors who rug pulled investors and dealt the memecoin market a huge blow as interests fell to an all-time low.

The impact of the LIBRA’s collapse and the attendant apathy for memecoins affected Pump.fun’s revenue which was already taking hits following the failure of its livestream feature launch.

Pump.fun endured over 50% decline in token launches, with some commenters predicting that the figure could drop further. However, it appears to have weathered that lull as the platform tries to regain the pace of token launches in January 2025.

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