Pump.fun Co-Founder Denies Token Launch Rumors Amid Legal Challenges
The co-founder of Pump.fun, Alon Cohen, has denied circulating reports suggesting the platform is preparing to launch a new token. Cohen urged users to dismiss any information not directly communicated by the platform, emphasizing that speculation about the alleged token launch is unfounded.
Cohen, who played a key role in launching Pump.fun in January 2024, reaffirmed the team’s commitment to product development. In a statement shared on X, he assured users that the platform remains dedicated to rewarding its community appropriately. He also highlighted the importance of patience, stating that significant improvements require time.
Contradictions Between Cohen’s Statement and Analyst Report
Cohen’s remarks contrast with earlier reports from Wu Blockchain, a well-known crypto analyst, who claimed that Pump.fun was preparing a token launch through a Dutch auction model in partnership with centralized exchanges. The unconfirmed reports further suggested that the token could include features such as revenue sharing and exclusive platform access. However, the co-founder dismissed these claims and advised users to rely only on official updates from the platform.
Pump.fun has established itself as a leading meme coin launchpad on the Solana blockchain. The platform enables users to create and trade tokens efficiently. However, its rising popularity has drawn increased attention from both traders and regulators. Legal challenges have added further complications to its operations.
Lawsuits Alleging Securities Law Violations
The platform is currently facing legal pressure from multiple lawsuits. On January 16, Burwick Law and Wolf Popper LLP filed a case against Pump.fun, alleging violations of U.S. securities laws. The lawsuit claims the platform facilitated unregistered securities sales disguised as meme tokens. The complaint specifically mentioned the case of Peanut the Squirrel, a token that allegedly underwent artificial price inflation before collapsing due to influencer promotions.
Legal scrutiny escalated further on January 30, when a second lawsuit expanded allegations against Baton Corporation Ltd., which operates Pump.fun. This lawsuit accuses key executives of engaging in coordinated price manipulation schemes that allegedly harmed retail investors. The ongoing legal battles continue to put pressure on the platform as it navigates regulatory challenges.
Amid these legal and regulatory hurdles, Cohen reiterated the importance of avoiding misinformation. His statement served as a caution against unauthorized claims regarding the platform’s plans. As regulatory oversight increases, Pump.fun’s leadership remains focused on maintaining user trust and developing the platform.
