- Pump.fun has been a breakout player in the meme coin movement..
- But its recent troubles like legal risks, bot domination, and fierce competition may force it to radically rethink its platform design and compliance posture.(VARA).
- The X reinstatement may help with optics, but the real battle is just beginning..
Meme coin launchpad Pump.fun and the account of its co-founder Alon Cohen have been reinstated on X after a brief suspension yesterday for unknown reasons. The takedown was part of a broader crypto crackdown on X that affected several prominent figures and entities in the space.
However, reinstating Pump.fun’s X account does little to alleviate the mounting pressure the platform now faces. In fact, there is speculation that launchpads like Solaxy may be positioned to take over.
Pump.fun’s Legal Troubles
Pump.fun is now the target of a class-action lawsuit filed by Burwick Law, representing 500 clients. The lawsuit alleges securities law violations, citing the platform’s role in facilitating meme coin launches that generated over $500 million in revenue. The suit could have significant regulatory and financial implications.
Bot Domination & Retail Disillusionment of Pump.fun
A deeper concern is the platform’s bot infestation. According to crypto analyst Adam Tehc, 93 of the top 100 wallets on Pump.fun are controlled by bots. This algorithmic dominance is crowding out retail investors. Of the more than 217,000 wallets that traded last month, only 3% made any profit. Of those, only five wallets managed to earn over $50,000.
Intensifying Competition for Pump.fun
Pump.fun also faces stiff competition from emerging platforms such as Solaxy’s Igniter, a competing launchpad that promises fairer launch conditions and enhanced bot resistance.
Despite the turbulence, Pump.fun is pushing forward with a planned $1 billion token sale aiming for a fully diluted valuation of $4 billion.