Pump.fun co-founder Alon Cohen has refuted recent reports suggesting that the Solana-based memecoin launchpad is preparing to issue its own native token. Cohen dismissed the claims, labeling them as incorrect, amid rising speculation within the crypto community.
Token Launch Rumors and Denial
Crypto journalist Colin Wu recently reported that Pump.fun was developing a token and planned to distribute it through a Dutch auction system in collaboration with multiple centralized exchanges. Wu cited insider sources and claimed to have obtained documents detailing the token issuance process.
However, Cohen took to social media to deny these reports, stating:
“Seeing rumors about a potential Pump.fun token – these are wrong.”
He emphasized that the company remains focused on improving its platform and fairly rewarding users but did not confirm any immediate token plans. Despite Cohen’s dismissal, Wu stood by his reporting, asserting that multiple exchange officials and official preparation documents confirmed the upcoming token launch, though the timing remains uncertain.
Legal Challenges and Regulatory Concerns
The speculation around a potential token launch coincides with growing legal scrutiny surrounding Pump.fun. A class-action lawsuit filed in the Southern District of New York alleges that the platform facilitated the sale of unregistered securities, generating nearly $500 million in fees. The lawsuit claims Pump.fun’s operations violate U.S. securities laws and seeks damages for affected investors.
Additionally, Burwick Law and Wolf Popper LLP have issued a cease-and-desist letter to Pump.fun, demanding the removal of over 200 tokens allegedly misusing their intellectual property. The firms argue that Pump.fun has enabled the creation of tokens impersonating their firms, employees, and clients, which they claim interferes with ongoing litigation.
What’s Next for Pump.fun?
While Cohen has not directly addressed the legal disputes, he maintains that Pump.fun operates within legal boundaries. The ongoing speculation about a potential token launch has divided industry observers, with some believing it to be a natural progression for the platform, while others view it as mere conjecture.
As the situation unfolds, Pump.fun continues to navigate legal challenges and regulatory scrutiny while denying any immediate plans for a token launch.
