Burwick law takes legal action against Pump.fun meme coins on behalf of investors
Burwick Law steps in to represent investors in Pump.fun meme coins, as the platform’s financial activity continues to raise concerns.
Key Takeaways
- Burwick Law is suing Pump.fun on behalf of investors due to meme coin trading losses.
- Pump.fun has significantly impacted Solana's DeFi space, accounting for over 70% of new tokens on some days.
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Burwick Law has initiated legal proceedings against Pump.fun on behalf of investors who suffered losses from the platform’s meme coin trading activities.
**LEGAL ACTION ALERT: PUMPDOTFUN**
Burwick Law is pursuing legal action on behalf of investors in pumpdotfun memecoins. If you lost money on any pumpdotfun memecoins, you may be entitled to compensation.
Read more below.
— Burwick Law (@BurwickLaw) January 15, 2025
The firm highlights concerns over the platform’s anonymity and its display of illicit content.
The action comes as Pump.fun generated a weekly volume of $2.2 billion, according to on-chain analyst Adam Tehc’s Dune dashboard.
A recent report based on Dune Analytics data tracking Pump.fun showed that out of 14 million wallet addresses on the platform, only 57,144 users have realized profits exceeding $10,000, while just 298 wallets—approximately 0.00217%—have made over $1 million.
On-chain analyst Adam Tehc, however, argues that the data doesn’t accurately reflect the number of crypto traders who are truly profitable on the platform.
“If you’ve realized $10,000 trading Pump.fun’s tokens, you’re a top 0.412% wallet,” on-chain analyst Adam Tehc said in a Jan. 10 X post. Realized profits are only calculated after traders have sold their assets.
Alon, the platform’s anonymous co-founder, challenged the Dune data’s accuracy, stating it excludes purchases made after tokens are bonded to Raydium, the decentralized exchange for Pump.fun tokens.
He noted that 30% of Pump.fun wallets have conducted only one transaction, attributing this to bot or AI activity.
According to Lookonchain, the platform has earned 2,016,391 SOL tokens, equivalent to approximately $398 million in revenue by January 2, 2025.
The legal action coincides with Solana’s DeFi activity approaching its all-time high of $9.5 billion in TVL, with current figures at $9 billion.
Pump.fun has dominated token creation on Solana, accounting for over 70% of new tokens on certain days.
Following the announcement of legal proceedings, a meme coin based on Burwick Law emerged, reaching a $700,000 market cap.
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