Pump.fun has delayed its public token sale once again, extending months of uncertainty for users and investors as the popular Solana-based launchpad wrestles with a flurry of lawsuits, Colin Wu reported on June 20.
Pump.fun had aimed to raise $1 billion at a $4 billion valuation through its token auction originally set for June 25. The sale is now expected to happen in mid-July, although the team did not give a precise date or clear reason for the additional delay.
The token launch has reportedly been postponed multiple times since planning began in early 2024, frustrating backers eager for clarity on the platform’s future.
Class action lawsuit
Pump.fun’s legal headaches center on a class action lawsuit filed by Burwick Law on Jan. 15.
The complaint claims that the launchpad operated as an unregistered securities exchange and engaged in systematic price manipulation, inflating the value of tokens minted through its platform and leaving retail buyers with heavy losses when hype subsided.
Max Burwick, founder of the firm, has publicly accused Pump.fun of running what he calls a modern pyramid scheme masked as a viral meme economy. The lawsuit seeks damages and an injunction to halt what the plaintiffs describe as deceptive marketing and trading practices.
On top of the securities claims, Burwick Law and Wolf Popper LLP served Pump.fun with a cease and desist order in February, alleging that user-generated memecoins regularly use trademarks and brand names without permission, exposing the platform to intellectual property liabilities.
Social media ban fuels uncertainty
The project’s struggles spilled onto social media when the official X accounts of Pump.fun and its founder were suspended on June 16 without public explanation.
The ban, which was lifted a few days later, sparked rumors that regulators or legal complaints may have prompted the takedown. However, neither X nor Pump.fun confirmed any link to the pending lawsuits.
The incident mirrored a broader trend, as other crypto startups have reported abrupt suspensions on the platform in recent months, further rattling communities already wary of increasing regulatory crackdowns worldwide.
Pump.fun has since expanded its legal team in an attempt to defend itself against multiple lawsuits and maintain community support. Despite the fresh hires, users and investors remain in the dark about when the token sale, billed as a major milestone for the project, will finally take place.
The repeated postponements have also reignited debate within the Solana ecosystem about the sustainability and legal risks of rapid-fire memecoin launches.
Industry watchers say the outcome of the lawsuits could set an important precedent for other meme-focused platforms navigating the thin line between viral hype and regulatory compliance.
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