Pump.fun addresses ‘wrong’ token launch rumors on heels of lawsuit

The co-founder of Pump.fun has denied circulating rumors about an upcoming token launch, urging users to disregard information not directly shared by the platform.

Co-founder Alon Cohen, who helped launch Pump.fun in January 2024, posted on X that his team remains focused on product improvements. They also remain committed to “rewarding users properly,” he said.

Cohen’s message emphasized the importance of patience, stating “good things take time,” while warning against unauthorized claims about the platform’s plans. This comes as the platform goes through increased attention from both traders and regulators.

The 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 established itself as a prominent meme coin launchpad on the Solana ( SOL ) blockchain, allowing users to create and trade tokens quickly. However, the platform faces several legal challenges now.

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.

The co-founder’s warning against unauthorized claims comes as the platform goes through this increased regulatory scrutiny.