The grapevine on X has it that Pump.fun, notable for launching memecoins on Solana, is partnering with centralized exchanges for a Dutch auction. Wu Blockchain, on Sunday, claimed they acquired evidence indicating an impending token launch.
Despite Alon's denials, reports claim Possessing documentary proof, verification from exchange personnel was highlighted.
This report mentioned the token distribution plan and a public sale schedule, leading to whispers of a possible airdrop for Pump.fun's early users. Nevertheless, co-founder Alan Cohen immediately stepped in, declaring the Solana memecoin hub has no intention to initiate a token or IPO.
Big Play
Shortly after the news hit the wires, Alan clarified that the talk of Pump.fun's token was misguided. He urged users to rely solely on the official team updates. Alan also pointed out that Pump.fun's priority remains enhancing the platform and rewarding its community.
Despite Alan's refutation, Wu Blockchain stood firm, saying they have compelling proof of Pump.fun's token plan, countering Alan's remarks with allegations of misleading the community.
Wu Blockchain reiterated that the token launch is envisioned to be executed via a Dutch auction on centralized exchanges.
“The Wu Blockchain team acquired comprehensive token issuance documents from Pump.fun to the CEXs. Publication is possible with consent,” they revealed.
Wu Blockchain noted that exchange listing staff have independently confirmed the token launch agenda, admitting the exact date remains undisclosed.
Neither Alan nor Pump.fun have addressed these accusations.
Amid general plans, Pump.fun faces allegations of insider-favoring token distribution, implying public deceit.
Reports suggest a token allocation of 22.05% to early investors, with the team keeping 25% locked for a year, followed by a gradual release over three years.
Ongoing Legal Challenges
Pump.fun is under legal scrutiny . In the preceding month, Burwick Law, together with Wolf Popper LLP, filed a lawsuit against the platform, representing investors who have incurred losses.
The lawsuit contends that Pump.fun has engaged in the unregistered sale of meme tokens, violating U.S. securities laws, allegedly raking in nearly $500 million in fees.
The plaintiffs argue they suffered significant financial harm through token purchases on the platform, accusing Pump.fun of promoting these tokens with inflated promises of returns that failed to materialize, causing substantial investor losses.
Tokens named in the lawsuit are FWOG, FRED, and GRIFFAIN. The suit accuses Pump.fun of co-issuing and marketing tokens as unregistered securities.
The plaintiffs claim the operations mimic a Ponzi scheme, leveraging influencers to create meme coin hype, leading retail investors to impulsive buying without due diligence.
The lawsuits concentrate on if tokens from Pump.fun qualify as securities, necessitating registration, seeking damages, legal fees, and annulment of all token purchases.
Separately, Burwick Law and Wolf Popper LLP issued a halt notice to Pump.fun, demanding withdrawal of tokens misrepresenting the firms. This followed a ‘DOGSHIT2’ token reference to the law firm, leading to intellectual property claims.
The firms allege Pump.fun launched tokens to intimidate clients and meddle with ongoing litigation
Earlier, the UK's financial overseer, the Financial Conduct Authority (FCA), warned against Pump.fun, blocking the platform's access in the UK.
