By Nermeen Nabil Khear Rumors recently circulated on X that Pump.fun, the leading Solana-based memecoin launchpad, was gearing toward a Dutch auction in partnership with centralized exchanges. Wu Blockchain reported on Sunday that they saw documents that confirmed the token launch.
Despite Alon’s denials, reports claim to have documentary evidence and confirmations from exchange staff.
The report, which also outlined a token supply and unlock schedule for public sale, sparked speculation about a potential airdrop for early Pump.fun adopters. However, co-founder Alan Cohen quickly addressed them, saying that the leading Solana memecoin launchpad has no plans for a token launch or IPO.
Big Play
In a statement shared briefly after the report broke, Alan stated that reports about the potential Pump.fun token were inaccurate. He advised users to only rely on official updates from the team. Alon also noted that Pump.fun’s main focus has been on improving the platform and rewarding users.
Despite Alan’s denial, the Wu Blockchain team asserted that they had obtained strong evidence that Pump.fun is planning to issue a token. The team directly challenged Alan’s statement, accusing him of lying to the community.
Wu Blockchain reiterated that the token issuance would be conducted through a Dutch auction inside centralized exchanges.
“WuBlockchain Team obtained the detailed coin issuance preparation documents that Pumpfun provided to the CEXs. We can also publish with permission,” the team said.
Wu Blockchain added that the CEX listing staff have independently confirmed the token launch plan, although they admit the exact timing is still unknown.
Neither Alon nor Pump.fun commented on the accusation.
Apart from the general plan, accusations of a token distribution strategy benefiting insiders also surfaced against Pump.fun, suggesting the company may be misleading the public.
Reports indicate early investors would receive 22.05% of the token supply, with the team controlling 25% under a one-year lockup and three-year gradual release.
Ongoing Legal Challenges
Pump.fun is currently facing multiple legal challenges. Last month, Burwick Law, along with Wolf Popper LLP, initiated legal action against the platform, on behalf of investors who have suffered losses.
These actions assert that Pump.fun has been engaged in the sale of unregistered securities in the form of meme tokens, a practice contravening U.S. securities laws. The platform is accused of generating nearly $500 million in fees through these activities.
The plaintiffs in these cases claim to have suffered material financial damages following the purchase of tokens on the platform. They contend that Pump.fun and its operators engaged in the promotion of these tokens through inflated and ultimately unrealized promises of substantial returns, resulting in significant losses for investors.
The tokens specifically identified in the litigation include FWOG, FRED, and GRIFFAIN. Pump.fun is also sued for operating a platform that co-issues and markets unregistered securities.
The plaintiffs say its operations are a new form of Ponzi and pump-and-dump scheme. They allege that Pump.fun employed influencers to create artificial hype around meme coins, causing retail investors to rush into purchases without making informed decisions.
These lawsuits’ concentration is on whether the tokens created using Pump.fun’s platform should be classified as securities. The plaintiffs argue that these tokens should be considered securities and thus require registration. The suits seek damages, attorneys’ fees, and rescission of all token purchases.
Burwick Law and Wolf Popper LLP separately sent a cease and desist letter to Pump.fun, demanding the removal of tokens that impersonate the firms. This action was prompted by a token called ‘DOGSHIT2,’ which referenced the law firm and led to claims of intellectual property violation.
The law firms allege that Pump.fun launched tokens designed to intimidate clients and interfere with ongoing litigation
The UK’s top financial watchdog, the Financial Conduct Authority (FCA), previously issued a warning against Pump.fun and blocked access to the platform in the UK.
The post Pump.fun Co-founder Refutes Rumors of Token Launch appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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