Pump.fun, the Solana-based memecoin launchpad, reportedly terminated more than 40 employees across two separate rounds of layoffs conducted shortly before their PUMP token grants were scheduled to vest.

An investigation by Sandmark alleges that the layoffs targeted individuals who had qualified for token allocations under agreements reached in June 2025. Pump.fun has not publicly responded to the claims.

According to the report, the first wave of layoffs occurred in April 2026, with a second round following in mid-July. Employees affected by the initial wave reportedly forfeited token allocations that were set to unlock in June 2026. One dismissed worker stated that the lost tokens were worth millions of dollars at the time they were originally slated to vest.

Token-Based Compensation Under Scrutiny

The timing of the dismissals has drawn attention to the broader industry practice of compensating cryptocurrency employees with tokens rather than cash. Vesting schedules are designed to incentivize long-term commitment, but employees who are terminated before their vesting dates typically lose unvested holdings. Unlike traditional equity compensation, which has accumulated decades of legal precedent around employee protections in major tech jurisdictions, token-based compensation operates with comparatively few established guardrails, leaving employees reliant on individual contract terms that companies draft and control.

Pump.fun has grown into one of Solana's highest-generating applications, producing approximately $1 million in daily revenue and accumulating $1.3 billion in lifetime income. The platform's dominance as a memecoin launchpad—enabling a no-code token creation model that lets users launch new coins in minutes—has attracted developers and traders to the Solana ecosystem.

Pumpfun ($1.3B lifetime revenue) publicly posted a Chief Legal Officer role with a $1–5M base salary. Yet it laid off employees just weeks/months before their PUMP token grants were set to vest. At least one person missed a seven-figure allocation.… — LayoffHedge (@LayoffAI) July 31, 2026

The allegations add to a series of challenges facing Pump.fun. In 2024, the platform dealt with a fraud case in which an insider stole $2 million worth of tokens. More recently, the company reportedly received a regulatory penalty in the United Kingdom for failing to meet mandatory accounting filing requirements, intensifying concerns about its corporate governance practices.

PUMP Token Posts Gains Despite Layoff News

On the day the layoff report surfaced, the PUMP token recorded gains. It traded around $0.002207, up 9.34% over a 24-hour period, with daily trading volume of approximately $187 million and a market capitalization near $875 million, according to CoinGecko. The token remains roughly 77% below its September 2025 peak.

The reported dismissals could affect confidence among existing staff, prospective hires, and token holders, especially as crypto companies increasingly depend on token-based compensation to attract talent. No regulatory investigation has been announced. Market observers are watching for an official statement from Pump.fun regarding its compensation policies and whether the controversy will impact recruitment, governance, or confidence in one of Solana's largest revenue-generating platforms.