Pump.fun Co-founder Denies Token Launch Rumors Amid Legal Challenges

Pump.fun Co-founder Refutes Rumors of Token Launch

In a recent statement, Alan, a co-founder of Pump.fun, has denied rumors circulating about the potential launch of a Pump.fun token. Alan advised users to rely solely on official updates from the team and emphasized that the platform's primary focus has been on improving the platform and rewarding users.

However, the Wu Blockchain team has challenged Alan's statement, asserting that they have obtained strong evidence indicating that Pump.fun is planning to issue a token. The team claimed that the token issuance would be conducted through a Dutch auction within centralized exchanges and that they possess detailed coin issuance preparation documents provided by Pump.fun to the CEXs.

The Wu Blockchain team also alleged that 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. Neither Alon nor Pump.fun commented on the accusation.

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. The plaintiffs allege that Pump.fun has been engaged in the sale of unregistered securities in the form of meme tokens, contravening U.S. securities laws.

The lawsuits focus 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.

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.