Pump.fun continues to postpone the token sale, facing multiple lawsuits and legal concerns.

The famous launchpad platform on Solana – Pump.fun – has just postponed the public token sale again, extending a series of instability that has lasted for many months for both users and investors.

Initially, Pump.fun planned to raise 1 billion USD with a valuation of 4 billion USD through a token auction on June 25. However, the sale has been postponed to mid-July, but the development team has not announced a specific date or a clear reason for this delay.

It is known that the token sale plan has been postponed several times since the beginning of 2024, causing disappointment for the supportive community that is looking forward to the future direction of the platform.

Facing class action lawsuits

The legal troubles of Pump.fun stem from a class action lawsuit filed by Burwick Law on January 15.

The lawsuit alleges that Pump.fun operates as an unregistered securities exchange and engages in systematic price manipulation, inflating the value of memecoins created on the platform, which ultimately causes retail investors to suffer significant losses when the FOMO wave subsides.

Mr. Max Burwick – the founder of a law firm – publicly accused Pump.fun of operating "a modern pyramid scheme disguised as a viral meme economy." The lawsuit seeks damages and requests the court to issue an injunction against the alleged misleading promotional and trading activities.

In addition, in February, Burwick Law, in cooperation with Wolf Popper LLP, sent a letter requesting Pump.fun to cease operations, alleging that the memecoins created by users frequently infringe on copyrights and trademarks without authorization, putting the platform at legal risk regarding intellectual property.

The locking of social media accounts has left the community even more confused.

The crisis escalated on June 16 when the official account on social media X of Pump.fun and the personal account of the founder were temporarily locked without a clear reason.

This ban – although lifted a few days later – sparked rumors that regulatory agencies or legal complaints might be the cause. However, neither platform X nor Pump.fun confirmed that this was related to ongoing lawsuits.

The incident reflects a broader trend in the crypto industry, as more and more projects are abruptly suspended on social media platforms, making a community that is already sensitive to legal risks even more uneasy.

The future is unclear

Under increasing legal pressure, Pump.fun has expanded its legal team to respond to a series of lawsuits and maintain support from the community. However, despite these moves, both users and investors still do not have a specific answer regarding the timing of the token sale – an event seen as a crucial milestone for the future of the project.

The repeated delays have also sparked debates within the Solana community regarding the sustainability and potential legal risks associated with the trendy memecoin launchpad model.

According to market observers, the outcomes of the current lawsuits could set an important legal precedent for other memecoin platforms, as the line between the viral craze and legal regulation becomes increasingly blurred.