A New York-based law firm, Burwick Law, has announced plans to pursue legal action against Pump.fun, a Solana-based memecoin launchpad, following months of questionable promotional practices. The platform has come under intense scrutiny for allegedly facilitating harmful content and unethical behavior, raising concerns among investors.
Burwick Law’s Legal Move
Burwick Law, renowned for its recent federal lawsuit against the creators of the defunct Hawk Tuah memecoin, revealed its legal action in a post on X (formerly Twitter). The firm accused Pump.fun of collecting “hundreds of millions of dollars in fees” while hosting content that included illicit drug use, self-harm, racism, antisemitism, and disturbing acts of violence. This latest lawsuit signals a growing backlash against the platform, which has raised alarm bells within the broader crypto and legal communities.
If you’ve been affected, fill out this no-cost, no-obligation intake form: https://t.co/c9ak4AThsG.
— Burwick Law (@BurwickLaw) January 15, 2025
Today, Burwick Law is announcing publicly that we are pursuing legal action on behalf of investors in pumpdotfun memecoins. This announcement follows months of working alongside…
Financial Disparities on Pump.fun
Pump.fun has been a significant player in the meme coin sector, with a reported $2.2 billion in weekly trading volume, according to analyst Adam Tehc’s Dune dashboard. However, a closer inspection reveals stark inequalities in profitability among users. Of the platform’s 14 million wallet addresses, only 57,144 have made profits exceeding $10,000. Even more striking, only 298 wallets—roughly 0.00217%—have realized gains of over $1 million. Tehc pointed out that those who have earned $10,000 or more are part of the top 0.412% of wallet holders.
The Rise and Fall of Pump.fun
Since its inception in January 2024, Pump.fun quickly gained prominence within the Solana ecosystem, creating over 6 million tokens. Initially marketed as an easy-to-use platform for launching tokens, it soon became notorious for fostering speculative trading and promoting controversial behavior. A suspended livestreaming feature, which allegedly encouraged users to perform unethical acts for token promotion, led to significant backlash.
Also Read: 99.6% of Pump.fun Traders Haven’t Locked in Over $10K in Profits: Data Reveals
Despite the ongoing legal proceedings, Pump.fun continues to dominate the Solana-based memecoin space, with impressive revenues and a strong market presence. In November alone, the platform saw a staggering 207% increase in revenue, solidifying its role in the meme coin sector. As the Solana ecosystem flourishes, Pump.fun’s influence and legal troubles are poised to be key topics in the ongoing evolution of memecoin culture.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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