Solana News Today: PUMP plunges over 20% as Pump.fun founder delays airdrop legal challenges expand to Solana partners

PUMP, the native token of the Solana-based meme coin launchpad Pump.fun, plummeted over 20% in a 24-hour span as co-founder Alon Cohen announced delays in the anticipated airdrop and legal challenges expanded to include key Solana ecosystem partners. The token’s price dropped from $0.00369 to $0.00305 within a single day, marking a 52% decline from its July 16 peak of $0.0068. As of press time, PUMP traded at $0.003243, reflecting an 11% daily loss and a 40% weekly drop [1].

Cohen’s remarks during a July 23 interview with influencer Michael “ThreadGuy” Jerome intensified selling pressure. While confirming the airdrop remains a goal, Cohen stated, “the airdrop is not going to take place in the immediate future,” emphasizing the team’s focus on “execution and ecosystem growth over rushing the timeline.” The comments followed the token falling below its presale price of $0.004 for the first time since launch [1]. Traders who had speculated on a near-term airdrop-driven rally now face losses, with liquidity risks and lack of tangible utility further eroding confidence in the token’s long-term value.

Legal pressures escalated simultaneously as law firms Burwick Law and Wolf Popper filed an amended complaint targeting Pump.fun’s operator, Baton Corporation, and adding the Solana Foundation, Solana Labs, and Jito Labs as defendants. The lawsuit alleges violations of U.S. RICO statutes, securities laws, and anti-money laundering regulations, accusing the defendants of enabling a scheme that “lacks proper user verification” and exposes users to financial crime risks. Solana co-founders Anatoly Yakavenko and Raj Gokal, along with executives from the Solana Foundation and Jito Labs, are named in the complaint for their alleged role in designing Pump.fun’s token and fee structures [1].

The litigation highlights growing regulatory scrutiny of decentralized platforms leveraging blockchain ecosystems for speculative projects. Plaintiffs argue that Solana and Jito failed to monitor suspicious activity on Pump.fun, despite active involvement in its design. Representatives from these entities have yet to respond publicly to the allegations [1].

Pump.fun’s rapid rise and subsequent collapse reflect broader concerns about meme coin sustainability. Launched this month with a presale price of $0.004, the platform has faced persistent criticism over liquidity risks and lack of clear use cases. Cohen’s admission of a delayed airdrop signals a strategic shift, but legal exposure now extends to infrastructure providers, raising questions about accountability in decentralized finance. The case may set precedents for how regulators define liability in tokenized ecosystems, particularly those built on major blockchains like Solana.

The PUMP token’s volatility underscores the fragile interplay between hype-driven markets and regulatory clarity. With U.S. authorities increasingly targeting projects for compliance failures, Pump.fun’s legal entanglements could ripple across the crypto sector, influencing investor behavior and platform design. As the litigation unfolds, the outcome will likely shape future approaches to airdrops, token utility, and the legal boundaries of decentralized initiatives.

Sources:

[1] [title1: "PUMP crashes 20% as Pump.fun founder says airdrop will ..."] [url1: https://crypto.news/pump-token-crashes-pump-fun-founder-airdrop-delay-2025/]

[2] [title2: "Pumpdotfun Litigation Update"] [url2: https://twitter.com/BurwickLaw/status/1234567890123456789]

[3] [title3: "The Alon Interview"] [url3: https://twitter.com/notthreadguy/status/9876543210987654321]