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Not So Fun for Solana Memecoin Factory Pump.fun as Class Action in the Works

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New York-based law firm Burwick Law is about to take all the fun out of the major memecoin launchpad Pump.fun, as the firm is now pursuing legal action against the platform on behalf of memecoin investors.

Burwick is inviting memecoiners who have lost "significant amounts of money to memecoins, rugs, and unfulfilled promises" to join the legal action, as they might "be entitled to compensation."

According to the lawyers, Pump.fun generated hundreds of millions of dollars "while illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violence, and other antisocial acts were displayed on the platform." The announcement also highlighted that the creator of the platform remains anonymous, which "raises serious concerns about accountability."

Burwick alleges that "small pools of insiders and corrupt corporations" primarily benefit in the memecoin world "at the expense of most crypto enthusiasts."

The memecoin platform has not yet announced its response to the accusations, while some industry observers are wondering, why should Pump.fun be responsible in this case.

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Last November, Pump.fun faced another backlash from the community after a series of shocking videos were livestreamed on the platform by memecoin project authors. At the time, the platform was forced to disable its livestream function.

The launchpad runs on the Solana (SOL) blockchain and accounts for a significant share of the transaction fees collected on this network.

Meanwhile, blockchain data shows that more than six million memecoins have been deployed on the Pump.fun platform, which has also collected more than $459 million in revenue in total. For instance, at the time of writing, more than 50,000 tokens have been launched in the past 24 hours alone.

memecoin graph
Source: Dune.com

The memecoin mania has been fueled by numerous stories claiming that some traders turned a few hundred USD into millions. However, data shows that out of more than 14 million wallets on Pump.fun, only 298 have managed to make over $1 million in profit—about 0.002% of all wallets. Moreover, it is estimated that some of these wallets may belong to the same individuals or entities. Meanwhile, more than 6,760 wallets achieved profits exceeding $100,000, and 57,144 wallets realized profits of more than $10,000.

However, the memecoin industry has also seen numerous scams and fraud cases, costing traders millions.

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