Sepjijo, the co-founder of the pseudonymous Pump.Phone, dismissed claims that the project has lost more than 436 million from blockchain analytics firm Licoinchain, calling the allegations “total misinformation.”
In an X-Post, Sepjijo addressed the report, insisting that none of the transferred funds had been sold. He said that USDC started with the initial coin offering (ICO) of Pump Token and was redistributed to internal wallets as part of the company’s treasury management process.
“What’s happening is part of Pump’s treasury management, where $ from the Pump ICO is moved to USDC in different wallets to reinvest the company’s runway into the business.” “Pump never worked directly with the Circle.”
Treasury management is when a project allocates, stores and transfers its funds, such as operating capital, ICO proceeds or reserves, to ensure that it is afloat. A transition does not necessarily indicate a sale and may involve restructuring the portfolio and budgeting for future developments.
QuintileGraph reached out to Avonchain and Pump.phone, but did not receive a response by publication.
The fund movement sparked fears of selling pressure
Sipjijo’s comments came after Lukonchen reported that wallets linked to the Solana Mimicoin launchpad had transferred $6,436 million in USDC to crypto exchange Kraken since mid-October, which was widely interpreted as a massive cashout.
Fund movements fell below $40 million for the first time since July, with monthly revenue at the pump falling to $27.3 million in November, according to DeFilm data.
Despite this, data platforms Defilama, Arkham and Lyconchain showed that Pump.tagged wallets still hold more than $855 million in stablecoins and $211 million in Solana (sol).
Nikolai Sondergaard, a research analyst at crypto intelligence platform Nancy, interpreted the perceived sell-off as a precursor to further selling. Amberkin said the funds originated from an institutional private placement of pump tokens rather than active dumping.
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Divided between calls for community skepticism, defense and audit
Community reaction to Sepjijo’s explanation was divided. Some argued that the words raised more questions, while others supported Pump.Phone’s right to manage its own treasury.
X-user Vos said there were inconsistencies in the statement, as the co-founder claimed he was not involved in the transition while also stating he was managing his own treasury. “Definitely didn’t contradict yourself on the only post you had 10 hours to respond to,” Voss wrote.
Another community member, with the handle EthshapeWheel, rejected Sepjijo’s announcement outright and criticized what he described as “price manipulation via airdrop” and poor execution that left the token trading below its offering price.
Kongiko data shows that Pump Token trades at $0.002714, which is 32% lower than its ICO price of $0.004. The token was also down about 70% from its September high of $0.0085.
Some community members offered more sympathy, saying the real problem went beyond wallet flows to transparency about reserves.
User matey.sol said pump.fin has the right to deploy its earnings and ICO earnings however it chooses. Matty wrote, “It’s also wrong even if it’s true. It’s your own income.”
User Oga NFT said moving USDC is what legitimate projects do after an ICO, and the key question was whether USDC reserves supported the circulating supply.
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