Pump.fun Under Fire as On-Chain Data Fuels Backlash
Pump.fun’s recent capital transfers have sparked new discussion in the crypto space. On-chain data and industry watchers wonder if the platform’s earnings are the result of proper business practices or overzealous user value extraction. Blockchain tracking data claims that in the last 24 hours, the Solana-based meme coin launchpad transferred about $50,000 to the Kraken exchange. According to analysts, the platform moved about $615 million off-chain in just the fourth quarter of 2025.
In the fourth quarter of 2025, Pump.fun made about $74.1 million, according to DefiLlama. The platform has made around $935.6 million in revenue since its introduction. The quarterly transfers are one of the biggest profit-taking events of the current market cycle, according to several industry analysts.
Is Pump.fun Profiting Fairly? Crypto Community Divided
Participants in the cryptocurrency market have responded to the transfers in various ways. During a gold rush, some pundits compared websites such as Pump.fun to shovel sellers. This implies that in the end, fee collectors profit while users suffer trade losses. Others retorted that “extraction” is not the appropriate term to describe profitability. They pointed out that users are not forced to use the platform; they do so voluntarily.
Similar issues were previously addressed in November by the platform’s pseudonymous co-founder. He refuted claims that the project had sold over $436 million in USDC. Transfers detected by blockchain monitors, according to the co-founder, constituted standard treasury management. He clarified that liquidations were not reflected in the funds. He said that the assets were redistributed internally for operational reasons after coming from the PUMP token initial coin sale.
Pump.fun Revenue Soars Despite Highly Speculative Activity
The activity of Pump.fun is still quite speculative. Less than 1% of the 14.8 million tokens that were launched ever graduated. All year long, this pattern has continued. Revenue data indicates that since its debut, Pump.fun has grown quickly:
- From $2.45 million in Q1 2024 to $47.9 million in Q2 2024 and $207.3 million in Q4 2024, quarterly revenue grew.
- The platform’s revenue peaked in Q1 2025 at $256.2 million, but it continued to decline for the rest of the year.
- Revenue for Q4 of 2025 stayed above $70 million.
- The platform runs at about 100% gross margins with no stated cost of revenue.
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