Key Takeaways
- Pump.fun has processed over $420 million in fees since March 1st, 2024.
- The platform has over 10 million active wallet addresses and over 6 million tokens launched.
- Pump.fun daily active addresses currently exceed 200,000, and over 9,500 tokens were launched in the past 24 hours.
Pump.fun is facing yet another hurdle as a law firm has now initiated a public lawsuit against the memecoin-generating platform for allowing bad actors, frauds, and scams to proliferate on the platform, costing everyday investors millions of dollars.
A Ponzi Scheme?
Burwick Law is opening up a public lawsuit against Pump.fun for costing investors major sums of money across its dubious memecoins, rug pulls, and “unfulfilled promises.”
The post questions the hundreds of millions of dollars the memecoin platform has generated in fees while all manners of nefarious, illicit, and depraved acts were displayed on Pump.fun’s live stream feature.
“The creator of this platform has chosen to remain anonymous, despite acknowledging the importance of transparency in scaling and retail engagement, which raises serious concerns about accountability,” the firm adds.
Burwick notes that “we all” entered into crypto for its “profound promises” of bringing new financial tools and systems to the masses, disrupting legacy systems, and empowering individuals worldwide.
However, the firm highlights that despite this, the ecosystem remains at the behest of scammers, frauds, and bad actors.
“[…]speculative assets like memecoins that primarily benefit small pools of insiders and corrupt corporations—at the expense of most crypto enthusiasts.“
Since late 2024, when Pump.fun activity reached a fever pitch, Burwick Law has been canvassing on social media to investors of tokens such as $FRIEND and ‘celebrity’ memecoin $DAVIDO, suggesting they may be due compensation after these projects were seemingly abandoned.
The firm believes that Pump.fun has played a role in exploiting everyday people and dampens the potential of crypto and its numerous projects, which may lead to genuine, tangible societal change.
Pump.fun Rolls On
Despite being one of the hottest crypto trends in 2024, Pump.fun’s rise to the top of crypto was both a blessing and a curse. The platform delivered on lowering the bar of entry for people to create, promote, and sell cryptocurrencies that they create, though it would appear that the bar was too low.
Tokens such as Peanut the Squirrel (PNUT), Just a Chill Guy (CHILLGUY), and the artificially intelligent (AI)-driven token Goastseus Maximus (GOAT) were major successes in the memecoin goldrush of 2024, but they represent just a fraction of a percentage of tokens that actually “graduated” from Pump.fun.
Hundreds of millions of fresh capital poured into the Solana ecosystem. As per Dune, Pump.fun transactions continue to overwhelmingly dominate network metrics. However, in recent weeks, non-Pump.fun volumes on Solana decentralized exchanges (DEXs) have regained dominance.
Evidently, the prospect of creating a crypto for less than $2 and hoping to walk away with a fat return was too good to pass up for millions of people. However, it quickly became a hotspot for controversy, mainly as a result of its depressing livestream content, which regularly featured the most provocative content to grab the attention of the platform’s 14 million users.
At present, AI-powered memecoins are keeping the platform’s metrics afloat. However, with Solana founders in staunch opposition to the platform, bans in countries like the UK, and growing pressure
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
