The co-founder of Pump.fun has urgently refuted circulating rumors regarding a potential token launch, advising users to disregard unverified information.
Alon Cohen, a co-founder of Pump.fun, communicated on social media about the team’s commitment to enhancing their product and ensuring users receive appropriate rewards. Cohen emphasized the value of patience, stating, “good things take time,” and cautioned against listening to unauthorized announcements related to the platform’s future.
This clarification from Cohen follows a surge of attention from traders and regulatory bodies towards the platform. He urged followers to focus on verified communications directly from Pump.fun.
Contrary to Cohen’s statement, reports from analysts had suggested that Pump.fun was preparing to launch a token via a Dutch auction model in collaboration with centralized exchanges. Speculation around the token indicated possible features, such as revenue sharing and exclusive access for token holders.
Pump.fun has emerged as a significant player in the meme coin launchpad sector on the Solana (SOL) blockchain, providing users with a swift way to create and trade tokens. However, the platform is currently navigating multiple legal challenges.
On January 16, significant legal action was initiated against the platform by Burwick Law and Wolf Popper LLP, alleging breaches of U.S. securities laws through the sale of unregistered securities represented as meme tokens. The lawsuit notably referenced the Peanut the Squirrel token, accusing it of experiencing artificial price inflation due to influencer promotions before its subsequent decline.
The legal situation escalated on January 30, with a subsequent lawsuit broadening the allegations against Baton Corporation Ltd., the operator of Pump.fun, and its key executives. These legal challenges allege coordinated price manipulation schemes that have adversely affected retail investors.
As regulatory scrutiny heightens, the co-founder’s warning against unverified claims serves as a precautionary reminder for users to rely on credible sources for information regarding Pump.fun.
