Outside Source
Pump.fun’s co-founder Alon Cohen has dismissed speculation about an upcoming PUMP token launch.
The development comes as the platform is facing a potential class-action lawsuit for the alleged sale of unregistered securities.
Token Launch Rumors
Cohen addressed the rumors on X, stating, “Seeing rumors about a potential pump fun token – these are wrong.” He also urged users to rely only on official updates from the team. The executive emphasized that the platform remains focused on improving its services and rewarding users, adding that “good things take time!”
His response followed reports from Wu Blockchain, which suggested that Pump.fun was preparing for a Dutch auction in collaboration with unnamed centralized exchanges. This also led to rumors about a potential airdrop for early adopters.
The publication claimed to have obtained internal documents outlining the token issuance process. It also stated that the timing of the release had not been finalized, citing legal challenges faced by the Solana-based meme coin maker.
The claims also alleged that the token would have a total supply of 420 million, with 50% available for public sale at release. However, Cohen has denied all these rumors, stating that all reports of a token launch were false.
Legal Challenges
Pump.fun is currently facing a proposed class action lawsuit accusing the platform of securities violations.
The suit claims that every token created through Pump.fun qualifies as an unregistered security and alleges that the company has generated nearly $500 million in fees from these transactions. A similar case was filed by a different plaintiff just two weeks earlier.
Beyond its legal troubles, the platform has also dealt with controversy over a livestream feature introduced in November 2024. While intended to boost user engagement, the feature was quickly exploited to broadcast explicit and disturbing content. In response to public backlash, Pump.fun shut down the function, resulting in a decline in revenue.
Last year, the FCA also warned against Pump.fun, stating that it may be providing or promoting financial services or products without proper authorization. As a result, the company was forced to block access to its services for UK users.
Despite these challenges, activity on the Solana-based meme coin launchpad remains strong. Additionally, Solana continues to lead the retail decentralized exchange (DEX) market, accounting for 48% of total DEX volume, with nearly 60% of this activity driven by Pump.fun.
This article first appeared at CryptoPotato
