The cryptocurrency world is abuzz with recent developments surrounding Pump.fun, a platform known for launching meme coins. The native token, PUMP, has experienced a significant drop in value, and the company is now facing serious legal challenges.
PUMP Token’s Sharp Decline
On July 24, 2025, PUMP’s value fell by 17%, dropping from a high of $0.00369 to a low of $0.00305 within 24 hours. As of now, the token is priced at $0.00305415, reflecting a decrease of approximately 0.19% from the previous close. The day’s trading saw a peak at $0.00398809 and a low at $0.00294016.
This decline follows a trend since PUMP’s launch earlier this month. The token debuted at $0.004 during its presale, briefly reaching an all-time high of $0.0068 on July 16. However, it has since lost over 50% of its peak value.
Airdrop Delays Disappoint Investors
The downturn intensified after Pump.fun’s co-founder, Alon Cohen, announced that while an airdrop is planned, it won’t happen soon. In a July 23 interview, Cohen emphasized the team’s commitment to delivering a meaningful airdrop but stressed the importance of focusing on execution and ecosystem growth first.
“We’re going to keep our word… but the airdrop is not going to take place in the immediate future,” Cohen stated.
This news came shortly after PUMP’s price fell below its initial offering price, leading to increased selling pressure from traders who had anticipated a near-term distribution.
Legal Challenges Expand
Adding to the platform’s woes, legal actions against Pump.fun have intensified. On July 23, law firms Burwick Law and Wolf Popper expanded their lawsuit to include the Solana Foundation, Solana Labs, and Jito, along with key executives from these organizations. The amended complaint alleges violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as securities law breaches and unlicensed money transmission.
The lawsuit names Solana co-founders Anatoly Yakovenko and Raj Gokal, Solana Foundation members Dan Albert, Lily Liu, and Austin Federa, as well as Jito’s CEO Lucas Bruder and COO Brian Smith. Pump.fun’s founders—Dylan Kerler, Noah Bernhard, Hugo Tweedale, and Alon Cohen—are also listed as defendants.
The plaintiffs argue that these parties were not mere bystanders but active participants in the alleged fraudulent activities. They claim that Pump.fun operated as an unregistered securities exchange, exposing investors to significant financial risks. The platform is also accused of failing to implement anti-money laundering measures, thereby facilitating illicit activities such as money laundering.
One specific allegation involves the North Korea-linked Lazarus Group, which reportedly used Pump.fun’s infrastructure to launch a memecoin named “QinShihuang” and launder funds from the Bybit exchange hack.
Community and Market Reactions
The combination of delayed airdrops and escalating legal issues has led to a loss of confidence among investors and the broader cryptocurrency community. Social media platforms are filled with discussions about the future of Pump.fun and the potential implications for the Solana ecosystem.
Market analysts suggest that the ongoing legal battles could have broader repercussions for the cryptocurrency industry, especially concerning regulatory compliance and the responsibilities of platform operators.
Looking Ahead
As Pump.fun navigates these turbulent times, the focus will be on how the company addresses the legal challenges and whether it can regain investor trust. The outcome of the lawsuit could set important precedents for the industry, particularly in terms of regulatory oversight and the accountability of platform operators.
For now, stakeholders are advised to stay informed and exercise caution as the situation continues to unfold.
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