- Solana-based meme coin launchpad Pump.fun faces a class-action lawsuit alleging it facilitated unregistered securities and engaged in pump-and-dump schemes.
- Meanwhile, competitor Pepe Unchained (PEPU) is gaining momentum with its upcoming Pepe’s Pump Pad, offering a potentially safer alternative for meme coin investors.
The popular Solana-based meme coin launchpad, Pump.fun, has found itself in hot legal waters after being hit with a class-action lawsuit. The lawsuit, filed on January 30 in a New York federal court by Diego Aguilar, alleges that every token created on the platform qualifies as an unregistered security. The case has sent shockwaves through the Solana meme coin community, raising concerns about potential regulatory crackdowns.
Pump.fun’s Alleged Pump-And-Dump Scheme
Pump.fun, reportedly operated by UK-based Baton Corporation, has been accused of manipulative marketing tactics. Aguilar’s filing claims that the platform, in collaboration with influencers, created a false sense of urgency around newly launched meme coins. This strategy allegedly encouraged reckless retail investments, leading to massive financial losses for many traders.
According to the lawsuit, Pump.fun represents an evolution of Ponzi and pump-and-dump schemes, where influencers play a key role in driving artificial demand for tokens before prices inevitably crash.
Key Figures Named in the Complaint
Several individuals connected to Baton Corporation have been named in the lawsuit, including:
- Alon Cohen
- Dylan Kerler
- Noah Bernhard Hugo Tweedale
These officers are accused of playing an active role in facilitating the alleged scheme.
Burwick Law Firm Joins the Legal Battle
Pump.fun’s legal troubles don’t end with Aguilar’s lawsuit. The Burwick Law Firm, a U.S.-based legal entity, has also announced its intention to take action against the platform. The firm claims that investors who engaged with Pump.fun suffered heavy losses due to rug pulls and false promises made by meme coin projects launched on the platform.
The law firm has also criticized Pump.fun for hosting and allowing harmful content on its platform. It cited instances of drug use, self-harm, racism, antisemitism, and explicit material, further tarnishing the reputation of the launchpad.
A Rising Challenger: Pepe Unchained (PEPU)
While Pump.fun faces mounting legal challenges, some competitors are emerging as potential winners. Pepe Unchained (PEPU) is gearing up to launch Pepe’s Pump Pad, a new meme coin launchpad that seeks to rival Pump.fun.
PEPU’s Impressive Market Performance
- +11% surge in the past 24 hours
- +53% gain over the past week
The hype surrounding PEPU’s upcoming launchpad has attracted significant investor interest, with the platform promising a safer, more structured approach to meme coin launches.
Pepe’s Pump Pad Investment Tiers
PEPU’s platform will offer four portfolio options for investors:
- Meme Titan – Focuses on top meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
- Meme Frenzy – A high-risk, high-reward strategy targeting new, volatile projects.
With the controversy surrounding Pump.fun, investors may shift towards more transparent alternatives like Pepe’s Pump Pad.
Final Thoughts
The lawsuits against Pump.fun could mark a turning point for meme coin regulations on Solana and beyond. If the allegations hold, it may lead to greater scrutiny of similar platforms, forcing them to comply with stricter security and transparency measures. Meanwhile, competitors like Pepe Unchained may seize the opportunity to reshape the meme coin ecosystem.
Could this legal battle spell the end of Pump.fun, or will it emerge stronger from the controversy? Only time will tell.
