Pump.fun, a Solana-based memecoin launchpad, has once again postponed its much-anticipated public token auction, now pushing the expected date into mid-July. The auction, which was initially scheduled for June 25, aims to raise $1 billion at a $4 billion valuation. The news was reported by crypto journalist Colin Wu on June 20.The delay adds to growing frustrations among users and investors who have seen the launch postponed multiple times since early 2024. No official reason or exact date has been provided by the Pump.fun team, further clouding the project's future.Class Action Claims Price Manipulation, Securities ViolationsPump.fun is facing serious legal trouble, notably a class action lawsuit filed by Burwick Law on January 15. The complaint accuses the platform of operating as an unregistered securities exchange and artificially inflating token prices minted through its launchpad. The lawsuit claims that many retail investors suffered steep losses after initial hype wore off.Max Burwick, founder of Burwick Law, went as far as calling Pump.fun a "modern pyramid scheme" disguised as a viral memecoin ecosystem. The lawsuit demands financial compensation and a legal injunction to halt what the plaintiffs argue are deceptive and manipulative practices.To complicate matters, both Burwick Law and Wolf Popper LLP issued a cease and desist letter in February. They allege that many memecoins on the platform violate intellectual property laws by using unauthorized trademarks and brand names.Social Media Suspensions Spark RumorsAdding fuel to the fire, the official X (formerly Twitter) accounts of Pump.fun and its founder were suspended on June 16. Though reinstated a few days later, the temporary bans sparked widespread speculation about possible regulatory involvement.Neither Pump.fun nor X has confirmed any link between the suspensions and the ongoing lawsuits. However, this incident is part of a wider trend, with several crypto-related accounts being abruptly taken offline in recent months. This has left communities on edge as regulatory crackdowns become more aggressive worldwide.Solana Community Debates Future of Memecoin HypeDespite expanding its legal team, Pump.fun has provided little public communication, and no new date has been confirmed for the token sale. The lack of clarity has reignited debates within the Solana community regarding the long-term viability and legal vulnerabilities of rapid-fire memecoin launches.Industry experts suggest that the outcome of these lawsuits could set a critical precedent for meme-driven platforms, particularly in how they balance viral growth with compliance and investor protections.
The post appeared first on CryptosNewss.com