Pump.fun Refutes Reports of Native Token Launch
Denial of Token Plans
Pump.fun co-founder Alon Cohen has dismissed reports that the Solana-based memecoin launchpad is preparing to issue its own native token, contradicting claims made by crypto journalist Colin Wu.
Wu reported that Pump.fun was working on a token and planned to distribute it via a Dutch auction system in collaboration with multiple centralized exchanges. He cited insider sources from these exchanges and claimed his team had obtained documents detailing the token issuance. However, Cohen refuted these claims in a social media post, stating:
“Seeing rumors about a potential Pump.fun token – these are wrong.”
Cohen emphasized that the company remains focused on improving its platform and fairly rewarding users but did not confirm any token plans.
Crypto Journalist Stands By Reporting
Despite Cohen’s denial, Wu stood by his reporting, stating:
“It is almost a public fact that Pump.fun plans to issue a token using the Dutch auction inside the CEXs.”
He asserted that his team had obtained official preparation documents and that multiple exchange officials confirmed Pump.fun’s token launch plans, although the timing remained undetermined.
Legal Challenges
The debate over a possible token launch comes as Pump.fun faces increased legal scrutiny.
A class-action lawsuit filed in the Southern District of New York alleges that the platform facilitated the sale of unregistered securities, generating nearly $500 million in fees. The lawsuit claims that the platform’s operations violate US securities laws and seeks damages on behalf of affected investors.
In a separate case, Burwick Law and Wolf Popper LLP have sent a cease-and-desist letter to Pump.Fun, demanding the removal of more than 200 tokens that allegedly misuse their intellectual property.
The firms argue that Pump.fun has enabled the creation of tokens impersonating their firms, employees, and clients, which they claim is an attempt to interfere with ongoing litigation.
Cohen has not directly addressed these legal disputes but has maintained that Pump.fun operates within legal boundaries.
Conclusion
As the controversy surrounding Pump.fun’s potential token launch continues to unfold, one thing is certain: the memecoin launchpad is under intense scrutiny, both from regulators and the broader crypto community.
FAQs
- What is the alleged token plan?
- Pump.fun is reportedly working on a native token, which would be distributed via a Dutch auction system in collaboration with multiple centralized exchanges.
- Who is reporting on the alleged token plan?
- Crypto journalist Colin Wu is one of the primary sources reporting on the alleged token plan.
- Why is Pump.fun denying the alleged token plan?
- Pump.fun co-founder Alon Cohen has stated that the company is not planning to issue a token, emphasizing its focus on improving the platform and fairly rewarding users.
- What are the legal implications of this controversy?
- Pump.fun is currently facing legal scrutiny, including a class-action lawsuit and a cease-and-desist letter from law firms Burwick Law and Wolf Popper LLP.
