Pump.Fun Denies Token Listing Plans Amid Lawsuit Strain

Alon, Pump.fun co-founder, has denied plans for a possible token issuance and has dismissed such rumors. Alon stated this in an update he posted on X. He told community members to ignore it as the information did not originate from the official pump.fun handle.

Legal Battle Intensifies Over Alleged Infringement

Alon insists that the development team has been actively trying to improve Pump.fun as a product in the past year. He restated the team’s commitment to enhancing and rewarding users appropriately.

This development comes amid the ongoing legal challenges it is having in the U.S. Notably, Pump.Fun received a cease and desist letter from Burwick Law and Wolf Popper. The law firm claims that Pump.fun infringes on intellectual property rights by using their logos without authorization.

The law firm has demanded immediately removing some tokens from its platform. This includes Dog Shit Going NoWhere (DOGSHIT2).

Max Burwick, a managing partner at the firm, has denied being involved in creating the DOGSHIT2 token. Burwick in the lawsuit, maintained that Pump.fun violated the Securities Act and has sought different forms of relief.

Contradictory Reports on Token Launch

Meanwhile, Wu Blockchain has insisted that Pump.fun is planning to launch a token via the Dutch auction inside centralized exchanges (CEXs). Wu Blockchain counters Alon’s denial that no such plans exist.

For clarity, a Dutch auction is a bidding process where the price is very high. The price is gradually reduced until buyers step in to claim the offer.

According to Wu Blockchain, it is “almost a public fact.” It claims to have detailed internal documents from Pump.fun that outline the token issuance plan. Additionally, Wu Blockchain says several exchange staff members have verified the token launch, although no date has been fixed.

Pump.fun Maintains Popularity

While it remains unclear which tokens, if any, are scheduled for listing, one of the memecoins associated with the lawsuit, DOGSHIT2, has been performing well.

As of February 3, the market cap of the memecoin had hit $23 million. The memecoin continues to gain popularity and increase in trading volume. This is as Pump.fun has continued to set new records in the market.