A state-side legal firm is inviting anyone wronged by Pump.fun, a meme coin launchpad based on the Solana platform, to stand behind a potential legal suit devised to seek compensatory justice. Burwick Law, based in New York, has voiced concerns over the suspect promotional operations performed by Pump.fun users in recent times.
Burwick Law alleges that, amid a backdrop of deviant and anti-social behavior exhibited on the platform, Pump.fun has amassed hundreds of millions in dollars from fees. The legal firm has publicly invited those reportedly hurt by the platform’s operations to step forward, corroborate the upcoming suit and seek financial restoration.
The popular meme coin launchpad, Pump.fun, has seen around 70% of all transactions on Solana-driven networks over the past couple of days. However, startling on-chain data states that only a meager 0.4% of wallet holders on the platform have reaped profits beyond $10,000, raising issues regarding the platform’s fairness to an average user. Contrarily, Alon, co-founder of Pump.fun, has contested this data saying that it is skewed due to traders making a majority of their gains after a coin “graduates” from the platform once it reaches a $100,000 market cap.
Going back to its inception in January 2024, Pump.fun has had a dominant hand in meme coin creation – with over 6 million tokens generated as per Dune Analytics data. Sadly, the platform, originally designed to let technologically-inexperienced users launch tokens, swiftly gained an infamous reputation for speculative trading and high-risk behavior.
Exacerbating matters further, the platform drew severe backlash for a live-streaming feature, allowing users to perform dangerous stunts to publicize their tokens. The platform has since suspended this controversial feature. Nonetheless, Pump.fun methods have led to a precarious system disproportionately benefitting few while leaving most facing financial devastation.