- Burwick Law plans legal action against Pump.fun over alleged dubious promotions.
- Pump.fun dominates memecoin launches on Solana, generating $398M amid growing legal scrutiny.
Notable law practice based in New York, Burwick Law, declared they will initiate a lawsuit towards Pump.fun, a memecoin launchpad operating on the Solana blockchain, for the sake of wronged investors.
The platform is being closely examined due to suspicions about its questionable marketing activities spanning over several months.
Burwick Law’s latest legal move
Known for recently filing a federal lawsuit against the creators of the unsuccessful Hawk Tuah memecoin, Burwick Law has made its newest action known through a post on platform X (previously Twitter).
The law firm alleged,
Over the last several months, the platform known as pumpdotfun has accumulated a substantial sum of around half a billion dollars from fees, despite numerous instances where harmful activities such as illegal drug use, self-harm, racial discrimination (including racism and antisemitism), lewd behavior, bestiality, violence, and other socially unacceptable actions were openly exhibited.
What’s more
As per analyst Adam Tehc’s data on his Dune platform, the system processed an impressive $2.2 billion in trades last week. Yet, a thorough examination revealed a significant gap in profits among its users.
Among the 14 million wallet addresses on Pump.fun, only about 57 thousand users have earned profits surpassing $10,000. To put it in perspective, an extremely small fraction – just 298 wallets or approximately 0.00217%, have accumulated gains worth over $1 million.
Remarking on the same, Tehc highlighted,
“If you’ve realized $10,000 trading Pump.fun’s tokens, you’re a top 0.412% wallet.”
For context, profits are considered realized only after traders have sold their assets.
The journey of Pump.fun
Since its launch in January 2024, Pump.fun has quickly become a dominant force in the world of meme coins. As per data from Dune Analytics, it appears that this platform has generated more than 6 million tokens.
At first, this platform was advertised as an accessible tool for creating tokens without requiring much technical knowledge. However, it quickly became known for encouraging high-risk trading activities and raising concerns due to some questionable practices.
Despite having suspended its livestreaming feature, the platform encountered strong criticism due to accusations that it had facilitated unethical behavior among its users. This reportedly included staging suicide attempts and instances of animal abuse, with the intention of boosting their digital tokens.
The way forward
In the growing Solana environment, Pump.fun has become an essential force, attracting substantial focus and control in the memecoin market.
On some days, the platform significantly dominates new token launches, earning more than $398 million, which makes up over 70% of the revenue, demonstrating its unquestionable impact.
It’s worth noting that the court cases involving Pump.fun occur at a time when the meme coin market is seeing renewed growth. At nearly $9 billion, Solana’s DeFi activity was approaching a record high in terms of Total Value Locked (TVL).
Regardless of the debate surrounding it, the swift financial success of Pump.fun, such as its 207% increase in revenue during just November, highlights its significance in developing the memecoin sector built on the Solana platform.
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2025-01-16 17:35