Token Sale Postponement Amid Legal and Operational Scrutiny
The planned $1 billion token sale for memecoin platform pump.fun, initially slated for June 25, 2025, has reportedly been postponed until mid-July. This deferral, as reported by Wu Blockchain, is attributed to escalating legal pressures and significant disruptions across social media platforms, intensifying scrutiny on the project’s operational integrity and its founder, Alon Cohen.
Mounting Legal Challenges
A primary catalyst for this postponement is a class-action lawsuit initiated by Burwick Law. The firm alleges violations of securities laws and engaging in price manipulation, effectively characterizing the platform as an “evolution of an MLM scheme.” Burwick Law explicitly states its objective as safeguarding retail traders from what it terms “unfair practices,” claiming to have amassed hundreds of statements from alleged victims. Beyond the scope of securities concerns, the legal challenge further encompasses allegations of intellectual property infringement, contending that user-generated memecoins frequently integrate well-known logos without proper authorization. Burwick Law issued an intellectual property violation notice in February 2025, a development that prompted pump.fun to enhance its content moderation protocols—a measure directly pertinent to an ongoing segment of the legal proceedings.
Social Media Disruptions and Market Perception
Further compounding the platform’s predicament were temporary account suspensions on the social media platform X (formerly Twitter) for both pump.fun and its founder, which occurred on June 16. Although these profiles were reinstated swiftly, with the platform attributing the incident to a “technical content review,” the episode reportedly exacerbated investor anxiety concerning potential future sanctions. This incident, coupled with the persistent legal challenges, introduces additional layers of uncertainty for a platform that had previously aimed to raise $1 billion at a fully diluted valuation (FDV) of $4 billion, even amidst sustained high demand from prospective investors.
Underlying Concerns Regarding Platform Integrity
These recent developments unfold against a backdrop of prior analyses that have cast doubt on the integrity of the platform’s user base. Notably, reports have indicated that 93 out of 100 top wallets on pump.fun were identified as automated bots, raising significant concerns about the prevalence of artificial activity within the ecosystem. The confluence of a prominent class-action lawsuit, ongoing intellectual property disputes, recent social media service disruptions, and earlier reports of pervasive bot activity collectively underscores the intricate challenges pump.fun faces as it navigates its high-profile token sale and endeavors to stabilize investor confidence.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.