Memecoin launchpad Pump.fun has once again postponed its token auction, amid legal troubles and a social media ban.
Solana-based (SOL) memecoin launchpad is once again facing issues. On Friday, reports emerged that Pump.fun would postpone its public token sale yet again. Originally scheduled for June 25, the platform had planned to raise $1 billion at a $4 billion valuation.
According to crypto news reporter Colin Wu, the team now expects the auction to take place in mid-July. The team stated that planning for the token launch began in 2024 but noted that the launch has already been postponed several times. Pump.fun did not clarify why the latest suspension occurred, but it coincides with mounting legal troubles in several jurisdictions.
Pump.fun’s legal troubles
Pump.fun is facing legal issues in multiple jurisdictions, including a notable class action lawsuit. On Jan. 15, Burwick Law served the platform with a class action suit, accusing it of violating securities laws and engaging in market manipulation.
The lawsuit claims Pump.fun artificially inflated token prices for its own benefit, with the alleged manipulation resulting in significant investor losses. Max Burwick, founder of the law firm, described the project as “the ultimate evolution of multi-level marketing scams,” preying on desperate individuals.
In February, Burwick Law and Wolf Popper LLP also issued a cease and desist letter over alleged IP violations. Specifically, user-generated memecoins on Pump.fun frequently use logos and names that may infringe on the intellectual property of private individuals or corporations.
The legal situation has put the community on high alert. On June 16, X suspended the accounts of both Pump.fun and its founder, before reinstating them a few days later. While neither X nor Pump.fun provided an explanation, the incident was not isolated, several other crypto platforms also had their accounts temporarily suspended. Still, it remains unclear whether the Pump.fun ban was directly related to its ongoing legal troubles.
Read the full article here
