DOGSHIT2, a memecoin launched in November, unexpectedly surged 67% to reach a market cap of $23 million following its mention in a legal case against Pump.fun.
Background of the Pump.fun Lawsuit
The lawsuit filed on January 30th claims Pump.fun engaged in the creation of unregistered securities, earning $500 million in fees. Investors who viewed Pump.fun tokens as illegal securities received legal backing from US law firms Burwick Law and Wolf Popper.
DOGSHIT2 Market Fluctuations
A twist emerged when crypto enthusiasts found that the DOGSHIT2 wallet address matched that in court documents, raising suspicions about whether the law firms may have created the memecoin. DOGSHIT2's market cap hit $4 million on January 31, the lawsuit filing date. It peaked at $0.003968 on February 2 but then lost 34% of its value, falling to $2.4 million.
Overall Memecoin Market
The significant rise of DOGSHIT2 aligns with a broader trend in memecoin markets. The law firm Burwick Law also targeted victims of the Hawk Tuah memecoin, while Elon Musk’s father showed interest in a new memecoin, MUSKIT. CoinGecko reports that 31% of investors in 2023 are interested in memecoins, indicating the sector's resilience.
Despite its fluctuations and legal connections, the memecoin market continues to captivate investor interest, leaving DOGSHIT2's full potential to be seen.
