The Solana-based platform Pump.fun has attracted attention again due to massive deposits to cryptocurrency exchange Kraken, sparking discussions within the Solana community.
Recent Actions by Pump.fun
Recently, Pump.fun deposited 117,913 SOL (approximately $18.26 million) to Kraken within a two-hour window. Since its inception, the platform has deposited a total of 3,097,265 SOL to Kraken, equivalent to $575 million at an average price of $186 per SOL.
Market Impact and Community Response
Additionally, the platform sold 264,373 SOL for 41.64 million USDC at an average price of $158 per SOL. These actions could be an attempt to lock in profits or hedge against market volatility, especially given the dramatic price fluctuations of Solana over the past two months.
Reactions and Criticism from the Solana Community
Despite its dominant role in the Solana ecosystem, accounting for over 70% of token launches and 56% of decentralized exchange transactions, Pump.fun has faced backlash. Many in the community accuse the platform of extracting liquidity without reinvesting in the ecosystem, reminiscent of events in October 2024 when it sold 503,343 SOL for $78 million, leading to market instability.
Pump.fun's actions continue to provoke controversy and dissatisfaction among market participants, raising questions about the future stability of the Solana ecosystem and the role of platforms like Pump.fun.
