Pump.Fun, recognized as a leading memecoin launchpad on the Solana blockchain, has again postponed its public token sale initially scheduled for June 25.
Reasons for Token Sale Delay
According to a post on platform X, the token sale is now set for July, though a specific date hasn't been announced. The team at Pump.Fun has not clarified the reasons for the delay, but reports suggest it may be due to ongoing legal issues.
Legal Issues and Their Impact
In May, it was revealed that 98.6% of tokens launched on Pump.Fun are linked to scams such as rug pulls and pump-and-dump schemes. The platform has faced legal issues as law firms have filed lawsuits on behalf of investors who allegedly suffered significant losses. Lawyers claim that Pump.Fun exploited users and allowed harmful content to thrive while profiting from its fees. The platform has also been dragged into new lawsuits regarding impersonation of memecoins.
Operational Aspects of Pump.Fun
Pump.Fun allows anyone to create a memecoin on its platform, with token prices increasing as more people buy in. When a token's value reaches about $100,000, it is 'graduated' and listed on Raydium, a decentralized exchange. The platform adds liquidity to maintain price stability and burns liquidity provider tokens to prevent sudden crashes.
Thus, Pump.Fun continues to be in the spotlight, although the token sale delay and legal issues raise concerns among investors and community members.
