Solana’s Pump Fun Denies SOL Sale Despite $138M Deposit to Kraken

Pump fun, a platform integral to the Solana ecosystem, has denied claims that it sold 99,999 SOL valued at $22.74 million after transferring the tokens to the Kraken exchange. Blockchain analytics platform Lookonchain had suggested the possibility of a sale following the large transaction, but Pump.fun clarified that no evidence supports such claims.

In a statement, Lookonchain acknowledged the misunderstanding, explaining that asset transfers to exchanges do not necessarily imply sales. “The Pump.fun Fee Account merely deposited 99,999 SOL into Kraken. We cannot confirm whether the SOL was sold,” Lookonchain stated on X.

Solana’s Pump Fun Denies SOL Sale

Pump fun’s deposit to Kraken adds to a series of substantial SOL transfers. From May 19 to September 3, Pump.fun reportedly sold 264,373 SOL for $41.64 million on-chain, averaging $158 per token. However, since September 19, the platform shifted to depositing SOL into Kraken rather than conducting on-chain sales.

Lookonchain reported that 733,869 SOL, valued at $138.74 million, has been deposited into Kraken over the past two months. These weekly deposits have fueled speculation that the SOL tokens are being sold off-platform, but no concrete evidence has surfaced to confirm such activity.

Given Pump fun’s previous history of on-chain SOL sales, market watchers believe the Kraken deposits might also indicate intent to sell. However, without on-chain data or public confirmation, the nature of these transactions remains unclear.

Pump fun and Its Role in the Solana Ecosystem

Launched in January, Pump fun has emerged as a key player in Solana’s ecosystem, enabling users to create tokens effortlessly. The platform initially required small fees to launch tokens, but later made the service free, contributing to its rapid growth.

Pump fun is credited with driving 62.3% of all decentralized exchange transactions on Solana in November as per Dune data.

Despite its success, Pump fun has faced criticism over controversial tokens and inappropriate content on its livestreaming feature. This includes instances of explicit stunts and unethical behavior aimed at promoting meme coins. Concurrently, they have removed the livestreaming feature, but the platform remains operational.

Is SOL Price Facing Selling Pressure?

The recent developments around Pump.fun come amid a bearish trend for Solana’s broader ecosystem. SOL’s price dropped to $228.07, reflecting a correction in the market. Other Solana-based tokens have also recorded declines, with the total market capitalization of Solana tokens falling from $347.8 billion to $228.8 billion within 24 hours.

Market data reveals a 43.2% increase in trading volume during this period, underscoring heightened sell-side activity. Analysts attribute this trend to investor concerns surrounding Solana-based assets and their declining value.

Traders are closely monitoring key support levels for SOL. The $236.27 Fibonacci 0.618 level has emerged as a critical zone, with further bearish pressure possible if prices fall below $215.27. Meanwhile, potential upward targets include $260.31 and $280.30 if the support holds.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.