Pump.fun let go over 40 employees in two waves of layoffs timed shortly before those workers’ $PUMP token shares were due to vest. The timing raises questions about whether the firings were strategically planned to avoid granting token rewards worth millions.
According to an investigation by Sandmark, the first round of layoffs hit in early April 2026, just weeks before the June vesting date for $PUMP tokens originally agreed upon in mid-2025. A second wave followed in July. At least one ex-employee says their lost token allocation was valued in the seven-figure range.
Financial Struggles Behind the Scenes
Pump.fun, operating under Baton Corporation Ltd, has made roughly $1.3 billion in cumulative revenue and generates about $1 million in daily profit. Despite this impressive revenue, the company has faced internal and regulatory challenges. In 2024, it suffered a $2 million embezzlement case and more recently was fined in the UK for failing to file accounting documents.
The $PUMP token itself has significantly declined, dropping 77% from its peak in September 2025 to around $0.002 today, though it gained slightly when the layoff news surfaced. Even with this drop, the token rewards remained valuable enough for employees to stand to lose millions.
Token grants like these aim to align employee incentives with company growth, similar to stock options in traditional startups. Alleged manipulation of vesting schedules could damage trust within crypto projects where tokens make up a big part of compensation.
This material is for informational purposes and is not financial advice.
