Pump.fun Postpones Airdrop Amid Lawsuit, While LetsBonk Strengthens Its Position

Co-founder of the Pump.fun platform, Alon Cohen, announced that an upcoming airdrop is not expected. As a result, the price of PUMP has dropped by 18.7%.

At the time of this writing, the market price of the «funny coin» stands at $0.003, according to CoinGecko. Over the past week, PUMP’s value has decreased by 42.4%.

The law firm Burwick Law has filed a class action lawsuit against Pump.fun. Defendants include Solana Labs, the Solana Foundation, Jito Labs, and Jito Foundation, with plaintiffs accusing them of running an illegal gambling operation.

Pump.fun has been likened to a «slot machine» for mass token creation and promotion. The platform has been criticized for operating without proper disclosures and investor protections.

Plaintiffs argue that Pump.fun allowed for the anonymous launch and trading of tokens without identity verification. They contend that this «meme-token factory» fostered an environment with unfair conditions, achieved through price manipulation via bonding curves and preferential trading for insiders and bots.

The accusations have been made under the Organized Crime and Corruption Act. Defendants are charged with fraud, false advertising, offering unregistered securities, and deceptive practices, with user damages estimated between $4 billion and $5.5 billion based on on-chain data.

Attorneys noted that Solana and Jito were not neutral infrastructure providers. Jito is accused of facilitating front-running using MEV tools, while Solana Labs and Foundation are alleged to be monetizing user activity through block space fees.

Meanwhile, Pump.fun’s competitor, the meme coin launchpad LetsBonk, has launched a support program for tokens within its ecosystem.

The team will allocate 1% of its revenue to buy back coins from the most successful trading pairs on the platform. Funds for this will be redistributed from the project’s marketing budget.

According to Dune, LetsBonk has generated approximately $1.4 million in fees over the past 24 hours.

LetsBonk’s founder, Tom, stated that buybacks will occur weekly.

Any pair that achieves “high performance” will be eligible for this program.

The total market capitalization of tokens launched on LetsBonk has already surpassed $1 billion, with Useless Coin being the largest asset in the ecosystem, followed by ANI.

It’s worth noting that the PUMP presale on July 12 concluded in just 12 minutes, raising $500 million. However, a few days later, it became known that nearly 60% of participants in the ICO sold or transferred their assets to centralized exchanges and other wallets.

On July 22, the price of PUMP fell below its ICO value, having decreased by 45% from its peak of around $0.0068.