New York-based law firm Burwick has announced its readiness to file a lawsuit against Solana-based platform Pump.fun. The firm is acting on behalf of users who have lost funds while investing through the platform.
Shocking Allegations Against Pump.fun
Burwick claims Pump.fun has earned hundreds of millions in commission revenue while ignoring illegal content on its platform. Users reported encountering issues such as drug use, self-harm, racism, and antisemitism. Following these reports in November, Pump.fun indefinitely halted its live streaming feature. However, the founder's anonymity further complicates transparency and trust issues on the platform.
Investor vs. Gambler
Burwick's statement ignited debate in the crypto community. Notable blockchain researcher ZachXBT believes that those investing in memecoin are more gamblers than investors due to the significant risks involved. Burwick co-founder Max Burwick compared memecoin fraud to a casino, noting that they can be easily manipulated as speculative assets.
The Significance of Burwick's Initiative
According to DefiLlama, Pump.fun earned $93.8 million in November and $80.3 million in December, indicating the growing trend of memecoins in the cryptocurrency market in 2024. Burwick's legal initiative may become a pivotal moment for investors, impacting both Pump.fun and the broader future of the cryptocurrency industry.
Overall, Burwick's actions may significantly impact Pump.fun and the cryptocurrency market, setting a precedent for future actions in this area.
