An investigation by Sandmark suggests that Pump.fun, operated by Baton Corp., accelerated workforce reductions in late March and early April after a period of rapid expansion. Internal recordings reveal co-founder Noah Tweedale citing a need to move "fast and rough" as the impetus for the cuts. While affected workers received severance based on tenure, their unvested PUMP allocations were canceled, stripping them of equity that has since ballooned in value.
The situation intensified in mid-July when an anonymous account claiming to represent former staff alleged that 40 employees were terminated just one day before another scheduled vesting date. While these claims regarding the July layoffs remain unverified by independent records, they mirror concerns about the company's internal handling of compensation. The controversy highlights a growing tension in the crypto sector regarding how firms manage token-based incentive structures during staff reductions.
These reports coincide with a significant liquidity event for the company, as 57.279 billion PUMP tokens—valued at approximately $86.49 million—were moved to 121 wallets following the expiration of a one-year lockup. With PUMP currently trading at roughly $0.002, or 77% below its September 2025 peak, the market remains sensitive to insider distributions that could increase selling pressure. Pump.fun has not publicly responded to the allegations regarding the termination of staff grants.
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