Pump.fun laid off workers before they received millions in PUMP tokens: ReportPump.fun co-founder Noah Tweedale reportedly attributed the layoffs to said the company growing too quickly.
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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The Solana-based memecoin launchpad Pump.fun laid off employees in April, two months before those workers were scheduled to receive millions of dollars worth of PUMP tokens. According to a report by Sandmark cited by Cointelegraph, at least one former employee was set to receive PUMP tokens valued in the seven-figure range under agreements signed in 2025. These agreements stipulated that a quarter of the allocated tokens would be unlocked after one year, specifically in June 2026.
Pump.fun co-founder Noah Tweedale attributed the layoffs to the company expanding too rapidly, though the exact number of employees affected has not been disclosed. This development comes amid legal challenges for Pump.fun, including a lawsuit accusing the platform of operating a “rigged” machine for investors and another concerning its maximal extractable value (MEV) practices.
At the time of publication, the price of PUMP tokens was $0.002113, marking a 7.5% increase over the previous day. The significance of these layoffs, coupled with forthcoming token allocations and ongoing legal issues, highlights possible operational and reputation challenges facing Pump.fun as it navigates growth and regulatory scrutiny.