Legal Storm Forces Pump.fun to Delay Billion-Dollar Token Sale

The Solana-based memecoin launchpad Pump.fun has pushed back its highly anticipated public token sale to mid-July. The delay follows a series of postponements and comes as the platform contends with a growing storm of legal challenges, including a class-action lawsuit that alleges market manipulation and intellectual property violations.

Initially, the Solana-powered platform had to launch a public auction on June 25, targeting a $1 billion raise at a projected $4 billion valuation.

The delay is the latest in a string of postponements since early 2024. According to Colin Wu on X, the company did not a new date or specific reason for the shift. Users and investors have voiced frustration over the lack of transparency as the legal and regulatory pressure grows.

The repeated delays are increasingly seen not just as scheduling issues, but as symptoms of a deepening legal crisis facing the platform.

A January class action lawsuit by Burwick Law alleges that Pump.fun operated as an unregistered securities exchange. The suit also claims the platform inflated the value of meme tokens launched on its site, misleading retail investors and leaving many with steep losses once the hype faded.

Founder Max Burwick charged Pump.fun with running a pyramid scheme disguised as a meme economy. The lawsuit seeks damages and a court order to halt the platform’s activities.

In February, Burwick Law and Wolf Popper LLP issued a cease and desist letter. They alleged that Pump.fun allowed users to create meme coins using trademarks and brand names without consent, raising intellectual property concerns.

The situation escalated further when the official X accounts of Pump.fun and its founder were suspended on June 16. The accounts were later restored, but no explanation was given.

The brief takedown fueled speculation about ongoing investigations or legal actions, although no official connection has been confirmed.

Notably, Pump.fun has expanded its legal team to fight multiple lawsuits and maintain its standing in the Solana ecosystem. Still, the repeated delays have triggered wider discussions about the legal risks of meme token platforms.

Analysts say the outcome of the lawsuits could set a precedent for how similar platforms operate and market their services. With no precise launch date, stakeholders remain uncertain about the project’s next move.

Meanwhile, speculation around Pump.fun’s airdrop is growing on Polymarket, where users are on potential launch dates. June 30 and July 31 have attracted the most attention, but the odds strongly favor a later release.

Bettors view a June 30 airdrop as unlikely, with “Yes” shares trading at 3.4 cents and over $36,000 in volume, suggesting only a 3% chance. Meanwhile, the July 31 outcome shows a 39% probability, with shares trading at 45 cents and lower volume at $31,979.