Key Highlights
- Sandmark claims Pump.fun laid off employees just before PUMP token vesting, leaving some without token rewards.
- At least one former employee reportedly lost PUMP tokens worth more than $1 million after being laid off.
- Pump.fun has not publicly responded to the allegations or confirmed the reported layoffs.
Pump.fun, the popular Solana memecoin launchpad, is facing claims that it laid off dozens of employees shortly before they were due to receive their PUMP token allocations.
The allegations come from a report by Sandmark, which says the layoffs happened in late March and early April, only weeks before the token vesting date. If true, the timing meant some former employees lost token rewards that were reportedly worth more than $1 million. Pump.fun has not made any public statement about the claims.
According to Sandmark, the allegations are based on internal documents as well as some audio and video recordings, emails, and conversations with former employees. The report says at least one employee missed out on a seven-figure PUMP token allocation after losing their job before the vesting date.
However, Sandmark also said it could not independently confirm every claim made by former workers, including the total number of employees who were laid off.
Main reason for job cuts
One piece of evidence mentioned in the report is a “termination of services” email that Sandmark said it obtained. The email reportedly invited employees to a group meeting in late March before the layoffs took effect. During that meeting, Pump.fun co-founder Noah Tweedale explained why the company was reducing its workforce.
According to the report, Tweedale told employees that Pump.fun had “grew too quickly,” adding that the company’s fast expansion had made it difficult to move “fast and rough.” Sandmark said employees who were affected officially had their agreements ended in early April. They were reportedly given a severance package worth one week’s salary for every month they had worked at the company.
Former employees missed their PUMP tokens
However, the employees told Sandmark that the biggest loss was missing the upcoming PUMP token vesting. These employees had reportedly signed token grant agreements in mid-June 2025. Under those agreements, one-quarter of their token allocation was expected to unlock one year later. Because some workers were no longer employed when that date arrived, they allegedly lost access to those tokens.
Sandmark said at least one former employee lost tokens valued at more than $1 million based on the token’s current market price, despite PUMP trading nearly 69% below its 2025 peak. At the time of publication, the token is trading at $0.002044, up 8.12% over the previous 24 hours, but still down 26% in a year.
Pump.fun price chart | Source: CoinMarketCap
Claims of a second round of layoffs
Sandmark also reported that the layoffs did not end in April. Former employees claimed there was another round of job cuts in mid-July.
Around the same time, an X account called ExPumpEmployee began sharing what it claimed were termination emails. The account owner also alleged they were dismissed just one day before their scheduled token vesting.
Pump.fun remains silent on the allegations
Former employees told Sandmark that more than 40 workers were laid off across both rounds. However, Sandmark said it could not independently verify that number. Pump.fun co-founders Noah Tweedale and Alon Cohen also did not respond to the publication’s requests for comment.
The claims have attracted attention because of how quickly Pump.fun grew over the past year. The platform became one of the biggest projects on Solana after allowing anyone to create a memecoin in seconds without paying launch fees. The company also reportedly expanded from just three employees to nearly 100 earlier this year.
The CryptoTimes has reached out to the Pump.fun team for comment and to confirm the claims made in Sandmark’s report. At the time of publication, the company had not responded. This story will be updated if Pump.fun provides a statement or additional information.
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