Pump.fun Lays Off Staff Before Token Vesting, Sparking Industry Debate

Pump.fun, a Solana-based memecoin launchpad operated by Baton Corp., is facing backlash after allegedly laying off staff members shortly before their token allocations were scheduled to vest. The decision has reportedly left affected workers without substantial digital asset payouts despite the platform's massive financial success.

According to a report by KuCoin, internal documents and emails reviewed by investigators indicate that leadership trimmed staff after a period of rapid expansion. Staff members who signed token grant agreements in June 2025 were dismissed right before their initial one-year vesting milestones, cancelling their eligibility for token allocations worth millions of dollars.

The controversy centres on the timing of employee dismissals relative to the platform's PUMP token unlock schedule. Critics argue that terminating contracts immediately prior to major vesting events undermines the foundational incentive models that attract talent to early-stage cryptocurrency projects.