Pump.fun dismissed more than 40 employees in two rounds of layoffs just weeks before their PUMP token grants were due to vest. This move reportedly affected team members who qualified for token allocations agreed upon back in June 2025.
The first wave of layoffs hit in April 2026, with the second following in mid-July. Employees let go in the initial cut lost tokens scheduled to unlock in June 2026. One ex-worker claimed those forfeited tokens were worth millions at the time they should have vested. The timing raises eyebrows amid a growing trend where crypto companies compensate staff with tokens instead of cash, tying vesting schedules to employee retention and company growth.
Revenue Highs Shadowed by Governance Issues
Pump.fun is one of Solana’s top-performing apps, generating roughly $1 million daily and over $1.3 billion lifetime. It has gained traction as the go-to platform for memecoin launches on Solana, attracting developers and speculators alike. Despite publicly advertising a Chief Legal Officer role with a $1 5 million base salary, the company proceeded with layoffs that cost staff seven-figure token allocations.
These allegations come amid other troubles. In 2024, an insider fraud case resulted in $2 million in stolen tokens. More recently, Pump.fun faced UK regulatory penalties for failing to meet accounting filing requirements, adding to corporate governance concerns.
Yet, the PUMP token shrugged off the controversy, rising 9.3% to about $0.0022 with a daily trading volume near $187 million and a market cap around $875 million the day these reports surfaced.
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