Controversies surrounding Pump.fun have resurfaced after the suspension of the founder's account and unusual claims about the platform's inactivity.
History of the Pump.fun Scandal
Pump.fun is under scrutiny due to one of its co-founders, Dylan Kerler, who has been involved in fraudulent tokens since 2017. According to Protos, he was linked to the creation of scam tokens like eBitcoinCash and EthereumCash, which deceived users out of approximately $75,000, worth over $400,000 today.
Platform Issues and User Concerns
In November 2024, Pump.fun shut down its streams after serious violations were found, including the posting of objectionable content. These incidents led to public backlash with no real consequences for developers. Additionally, a lawsuit was filed in January 2025, accusing the platform of violating U.S. securities laws.
Current Status of Solana Meme Coin Market
Recent events, including ongoing lawsuits and price drops on meme coins, are raising concerns among traders. The price of Solana has decreased by 2.57%, impacting the overall value of meme coins, now estimated at $10.4 billion.
The situation with Pump.fun and its associated risks highlights the need for caution when investing in meme coins. Various incidents, including lawsuits, fraudulent token creations, and social media issues raise doubts about the reliability of this platform.
