Pump.fun Faces Legal Storm as Meme Coin Launchpad Denies Token Launch Rumors

Pump.fun, a prominent meme coin launchpad on the Solana (SOL) blockchain, has faced increased scrutiny from both traders and regulators in recent months. The platform, which allows users to create and trade tokens quickly, has established itself as a key player in the meme coin ecosystem. However, it has also been the subject of several legal challenges.

On Jan. 16, Burwick Law and Wolf Popper LLP filed the first major lawsuit against the platform. The lawsuit alleged violations of U.S. securities laws through the facilitation of unregistered securities sales disguised as meme tokens. The complaint specifically highlighted the case of the Peanut the Squirrel token, which allegedly experienced artificial price inflation through influencer promotions before a collapse.

The legal pressure intensified on Jan. 30, with a second lawsuit expanding allegations against Baton Corporation Ltd., Pump.fun’s operator, and key platform executives. These legal actions target what plaintiffs mentioned as coordinated price manipulation schemes harming retail investors.

Amidst this increased regulatory scrutiny, Pump.fun co-founder Alon Cohen took to X to address rumors about an upcoming token launch. Cohen denied the rumors, urging users to disregard information not directly shared by the platform. He emphasized the importance of patience, stating "good things take time," and warned against unauthorized claims about the platform’s plans.

Cohen’s statement contradicts earlier reports from crypto analyst Wu Blockchain, who reported Pump.fun was preparing to release a token through a Dutch auction model in collaboration with centralized exchanges. Speculation about the token’s features included revenue sharing and exclusive platform access for holders.

Pump.fun has been a popular choice for users looking to create and trade meme tokens quickly. However, the platform’s legal challenges and the recent denial of token launch rumors highlight the complexities and uncertainties facing the meme coin ecosystem.