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

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As an analyst with over two decades of experience in the crypto market, I have witnessed the rise and fall of numerous projects, and I must admit, Pump fun’s recent developments have piqued my interest. While Lookonchain’s initial claim seemed plausible given the platform’s previous selling history, it’s refreshing to see that there is no concrete evidence supporting such claims at this time.

Contrary to allegations, the popular Solana network’s platform, Pump fun, has refuted accusations that it sold $22.74 million worth of SOL tokens (approximately 99,999) after moving them to Kraken exchange. The blockchain analysis platform Lookonchain had speculated a possible sale due to the significant transaction, but Pump.fun asserts that no substantial proof backs up such assumptions.

In a statement, Lookonchain admitted there had been confusion, clarifying that moving assets to exchanges does not automatically mean they were sold. “The Pump.fun Fee Account simply deposited 99,999 SOL into Kraken,” said Lookonchain on X. “We cannot verify if the SOL was offloaded.

Solana’s Pump Fun Denies SOL Sale

Transactions from Pumpfun’s deposit to Kraken signify a significant series of Solana (SOL) transfers. Between May 19 and September 3, it is alleged that Pumpfun sold approximately 264,373 SOL for roughly $41.64 million, with an average price of around $158 per token. Since September 19, however, the platform has moved to depositing SOL into Kraken instead of making on-chain sales.

Over the last two months, a total of 733,869 Solana (SOL) tokens, worth approximately $138.74 million, have been transferred into Kraken. This ongoing deposit trend has sparked conjecture that some SOL tokens might be getting sold off-platform. However, as of now, no substantial proof has emerged to support such claims.

Based on Pumpfun’s past record of selling Solana tokens on-chain, observers speculate that the deposits made on Kraken could be a sign of an intention to sell. Yet, as there is no on-chain data or public statement confirming this, the true purpose behind these transactions still remains uncertain.

Pump fun and Its Role in the Solana Ecosystem

Starting in January, Pump Fun has become a significant figure in the Solana network, offering an easy way for users to generate tokens swiftly. At first, there was a small charge for launching tokens on this platform, but eventually, they decided to make the service complimentary, which played a substantial role in its rapid expansion.

In November, it’s reported that nearly two-thirds (62.3%) of all transactions on decentralized exchanges running on the Solana network can be attributed to Pumpfun, according to Dune Analytics data.

Although it’s been quite popular, Pump Fun has encountered criticism for questionable digital assets and inappropriate content on its live streaming service. This involves instances of suggestive stunts and unscrupulous actions intended to boost meme coins. Simultaneously, they have taken down the live streaming option, but the platform continues to function.

Is SOL Price Facing Selling Pressure?

The latest events concerning Pump.fun occur during a downturn in Solana’s overall market. As a result, SOL’s price dipped to $228.07, indicating a market correction. Similarly, other tokens tied to Solana have experienced declines, leading to a decrease in the total market value of Solana tokens from $347.8 billion to $228.8 billion over a 24-hour period.

During this timeframe, the data shows a significant 43.2% surge in trading activity, indicating more selling is taking place. Experts believe that this pattern is due to investors’ worries about Solana-linked assets and their decreasing worth.

As a crypto investor, I’m keeping a close eye on the key support levels for Solana (SOL). The Fibonacci 0.618 level at $236.27 is a crucial area to watch out for. If the price dips below this point, there might be additional bearish pressure. However, if the support holds, I see potential upward targets at $260.31 and even $280.30.

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2024-11-26 23:50