Pump.fun reportedly dismissed employees shortly before their PUMP token grants were scheduled to vest, leaving at least one former worker without an allocation now valued at seven figures.

Pump.fun layoffs preceded employee token vesting

Pump.fun reduced its workforce in late March and early April after rapidly expanding its operations, according to an investigation by Sandmark.

Documents, emails, and internal recordings reviewed by the publication showed that some employees lost their jobs shortly before their PUMP allocations were due to begin vesting. At least one former employee allegedly forfeited tokens now worth seven figures.

Workers had reportedly signed token grant agreements in June 2025. Under those arrangements, the first 25% of their allocations would vest after one year, followed by additional releases over time.

Sandmark obtained a termination email showing that Pump.fun head of talent Lloyd McCarthy called affected employees into a group meeting in late March. During the recorded meeting, co-founder Noah Tweedale said the company had “grew too quickly,” limiting its ability to operate “fast and rough.”

Contracts were terminated in early April, according to the report. Affected workers received severance payments based on how long they had worked for the company, but their unvested PUMP allocations were reportedly canceled.

Pump.fun has not publicly addressed the findings.

Former workers allege a second round of cuts

New allegations surfaced after former workers claimed that Baton Corp., the company behind Pump.fun, conducted another round of layoffs in mid-July.

A newly created X account named “ex pump employee” alleged that Baton dismissed about 40 employees one day before their PUMP grants were scheduled to vest. The account owner claimed to have worked for the company for more than a year.

The account also alleged that Pump.fun never intended to conduct a public PUMP airdrop because the company opposed “giving free money” to users. Pump.fun has not responded publicly to that claim.

However, Sandmark said it could not independently verify the allegation that 40 workers were dismissed immediately before the July vesting event. The claim therefore remains based on the former employee’s account rather than independently reviewed employment records.

The dispute centers on employee compensation rather than tokens already held by public investors. Still, the allegations could increase scrutiny of how crypto companies structure token grants and whether employment termination clauses allow firms to cancel large allocations shortly before vesting.

PUMP distribution moved $86.49M to 121 wallets

The allegations follow Pump.fun’s first major team and investor token distribution after a one-year lockup expired.

As crypto.news previously reported, on-chain tracking showed that 57.279 billion PUMP tokens, valued at approximately $86.49 million at the time, moved to 121 wallets on July 15.

Wu Blockchain said the distribution marked the start of a three-year vesting period for team and investor allocations. The transfers made previously restricted tokens available to recipients, although wallet movements alone do not prove that any of the tokens were sold.

For US token holders, the employment allegations do not change their ownership rights. The broader concern is market-related: continued insider distributions could increase transferable supply and create selling pressure if recipients move tokens to exchanges.

PUMP remains 77% below its record high

PUMP traded around $0.002 at press time, gaining nearly 5% over the previous 24 hours, according to CoinGecko. Despite the daily rise, the token remained roughly 77% below its September 2025 all-time high.

The decline comes as Pump.fun continues to generate large numbers of short-lived meme coins. A June CoinGecko study examined 18.67 million tokens created through the launchpad between January 2024 and June 2026.

Researchers found that 12.8 million tokens, or 68.67%, recorded their final Pump.fun bonding-curve trade on the day they launched. Tokens that never traded were excluded because they had no measurable trading lifespan.

CoinGecko linked the high failure rate to the platform’s low barriers to token creation, which allow users to abandon launches quickly when early demand fails to appear.

Bitcoin (BTC) fell to its lowest levels in over two weeks on Friday as US stocks saw pressure into the monthly close.

Key points:

• Bitcoin approaches $62,000 as daily losses hit 3.5%.
• US stocks saw no positive reactions to relief in Asia, where stocks rebounded after the semiconductor sell-off.
• Analysis warns that Bitcoin bear-market history should continue to repeat in August.

Bitcoin price targets $62,000 in month-end volatility

Data from TradingView showed BTC/USD falling 3.5% to reach $62,369 on Bitstamp, a level last seen on July 14.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

US stocks turned red at the open before treading water, diverging from a major relief bounce seen in Asia. There, South Korea’s KOSPI index ended the day up 17.9%, its largest single-day gain on record.

KOSPI index one-day chart. Source: Cointelegraph/TradingView

“Semiconductor shares led both the sell-off and the subsequent recovery, reflecting the index’s high exposure to the global AI and memory-chip cycle,” trading company QCP Capital wrote in commentary on the latest macro market moves.

QCP noted that crypto market trading activity increased around the KOSPI gyrations, something it said “highlighted the growing relationship between crypto liquidity, regional equity positioning and broader technology-sector sentiment.” 

Both Japan and Korea reportedly engaged in currency interventions on Thursday, while Japan’s central bank kept benchmark interest rates at 1.0%, following the US Federal Reserve’s decision to stand pat on Wednesday.

Bitcoin traders see bear-market history repeating in August

BTC/USD approached the end of the monthly candle up 8.5%, marking its strongest July performance since 2022, per data from CoinGlass.

BTC/USD monthly returns (screenshot). Source: CoinGlass

Related: Here’s what happened in crypto today

Previously, traders had anticipated a relief bounce for the pair lasting until August, mirroring the 2022 bear market and ultimately reaching its next long-term bottom.

Trader and analyst Rekt Capital, among those seeing BTC price action copying bear-market moves from four years ago, forecast that the tide might not turn immediately.

“It’s likely price will try to maintain these highs in the early stages of August but history suggests price could rollover just like it did in 2022,” he wrote in a post on X on Friday.

Rekt Capital reiterated that Bitcoin’s 50-month exponential moving average (EMA), currently at $65,820, continued to act as resistance after two failed breakouts since mid-June.

BTC/USD one-day chart with 50-month EMA. Source: Cointelegraph/TradingView

Bitcoin price fell below $63,000 on Friday as a short-lived rebound in Asian semiconductor stocks faded, adding pressure as the cryptocurrency entered its historically weak August trading period.

Bitcoin price falls below $63K as risk assets weaken

Bitcoin traded below $63,000 after losing approximately 3% over the previous 24 hours. The decline followed renewed weakness in Asian technology shares, particularly companies tied to the artificial intelligence and semiconductor sectors.

Ethereum fell 2.8% to around $1,860, while Solana declined 2% to approximately $73. XRP traded near $1.06 as selling spread across large-cap cryptocurrencies.

The pullback came one day after Samsung Electronics and SK Hynix rallied roughly 25%, helping South Korea’s KOSPI recover from a steep multiweek decline. That rebound initially suggested investors were returning to semiconductor stocks following heavy selling.

Momentum failed to carry into Friday, however, raising concerns that Thursday’s advance was a temporary relief rally rather than the start of a sustained recovery.

Why faltering AI stocks are weighing on crypto

Crypto assets and AI-related equities have increasingly traded as part of the same risk-sensitive market. Both sectors rely heavily on speculative capital and tend to weaken when investors reduce exposure to high-valuation assets.

Recent pressure on semiconductor stocks has centered on questions about whether AI infrastructure spending can continue at its current pace. Investors are also examining whether future demand for memory chips and computing hardware can support valuations reached during the AI investment boom.

Those concerns are not directly related to Bitcoin’s network or adoption. However, broad risk reduction can still affect crypto as institutional traders rebalance portfolios, reduce leverage and move funds into cash or defensive assets.

For US investors, the next moves in Nvidia and other AI-linked shares could provide an important signal for crypto sentiment. Continued losses across the Nasdaq and semiconductor sector may limit Bitcoin’s ability to recover even without a crypto-specific negative catalyst.

Extreme fear compounds Bitcoin’s August risk

Market sentiment has deteriorated alongside prices. Alternative’s Crypto Fear & Greed Index stood at 25, placing the market in the “Extreme Fear” category. The index was at 28 one week earlier.

CoinGecko category data also showed limited strength across the crypto market. Decentralized finance showed limited relative resilience, but the sector remained under pressure alongside the broader crypto market.

That flat performance suggests investors may be favoring yield-generating or market-neutral DeFi strategies over directional exposure. It does not necessarily indicate that traders expect an immediate market recovery.

Bitcoin’s entry into August adds another risk. Historical data over the past 4 years places its average return for the month near negative 10%, making August one of the cryptocurrency’s weakest calendar periods.

Thin summer liquidity can magnify price swings as participation falls. Traders may also reduce exposure ahead of a month associated with repeated losses, creating additional selling pressure through a self-reinforcing seasonal pattern.

Bitcoin price could test $58K if weakness persists

An 8% decline from Bitcoin’s current level near $63,000 would place the asset around $58,000. That area is likely to attract attention as a possible support zone if selling continues.

A break below $58,000 could expose Bitcoin to a deeper correction, particularly if weak liquidity combines with leveraged long liquidations. Conversely, a recovery above $63,000 would be an early sign that buyers are absorbing supply.

The more important test may come from outside the crypto market. A sustainable floor in AI and semiconductor shares could help restore broader risk appetite, while another sharp decline would increase the likelihood of further pressure on Bitcoin.

Extreme fear has historically appeared near favorable medium-term entry points, but it does not identify an exact market bottom. Bitcoin’s August seasonality, weak technology shares and cautious investor positioning leave the near-term setup tilted toward volatility.

Tether generated approximately $1.5 billion in net operating profit during the second quarter of 2026 as returns from US Treasury holdings and repo operations supported its earnings.

Tether reports $4.1B in excess reserves

Tether’s total assets stood at approximately $187.7 billion at the end of June, while its reported liabilities totaled $183.6 billion. The difference left the stablecoin issuer with roughly $4.1 billion in excess reserves.

The figures appeared in Tether’s latest reserve attestation, prepared by accounting firm BDO and released Friday. US government-backed securities continued to account for the largest portion of the company’s reserve portfolio.

Interest earned from that portfolio, along with returns from repo operations, provided the main source of Tether’s second-quarter profit. The company’s exposure to short-term US debt has made its earnings sensitive to Federal Reserve policy and changes in Treasury yields.

Tether also reported that the circulating supply of USDT reached approximately $184.6 billion by the end of June. Based on the company’s figures, the token controlled more than 60% of the global stablecoin market.

Gold holdings rise as secured lending declines

Tether adjusted the composition of its reserves during the quarter by reducing secured lending and increasing its holdings of physical gold.

Outstanding secured loans fell by about $2.4 billion. Tether did not provide a full breakdown of the borrowers or collateral involved in the lending reduction in the information accompanying the results.

Meanwhile, the company purchased another 14 tons of physical gold, bringing its total holdings to more than 146 tons. The increase continued Tether’s move beyond cash-equivalent reserves and into assets such as gold and Bitcoin.

Tether said its portfolio remained resilient despite sharp price swings affecting both assets during the quarter. Its Bitcoin holdings were valued at approximately $5.8 billion at the end of June.

Those positions may provide additional returns when prices rise, but they also expose part of Tether’s balance sheet to greater market volatility than short-dated US government debt.

US Treasury holdings keep Tether tied to US markets

Tether’s reserve structure gives the company a substantial connection to US financial markets even though USDT operates globally.

The company’s earnings remain heavily influenced by income from US Treasury securities and related repo transactions. Any change in US interest rates could therefore affect future profitability, even if the number of USDT tokens in circulation continues to grow.

Tether is also expanding a separate US-focused stablecoin, USAT. The token recently launched on Celo, its second supported mainnet following Ethereum.

USAT users can mint and redeem the token natively on Celo without relying on third-party bridges. Celo’s CIP-64 upgrade also allows approved ERC-20 tokens to pay network transaction fees, meaning users can use USAT for gas instead of holding a separate token.

The deployment extends Tether’s US-oriented product to a blockchain commonly used for digital-dollar payments. It also separates USAT’s expansion from the company’s larger offshore USDT business.

Tether expands infrastructure beyond stablecoins

Tether said it added more than 30 million users globally during the second quarter while continuing preparations for a full audit by a Big Four accounting firm. It did not provide a completion date for that process.

The company is also exploring tokenized capital-market infrastructure in Africa. Tether and the Nairobi Securities Exchange signed a memorandum of understanding on July 28 covering tokenized securities, blockchain-based market systems and digital asset education in Kenya.

The parties will assess whether USDT could support settlement infrastructure where Kenyan regulations allow. However, the memorandum does not authorize a tokenized security, launch a trading venue or commit the exchange to using USDT.

No pilot date, budget, or binding implementation schedule was disclosed. Future developments will depend on regulatory approval, technical assessments, and whether the exploratory agreement advances into a formal project.