Key Takeaways
- Burwick Law is suing Pump.fun on behalf of investors over meme coin trading losses.
- Pump.fun has had a huge impact on Solana's DeFi space, accounting for over 70% of new tokens on some days.
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Burwick Law has commenced legal action against Pump.fun on behalf of investors who suffered losses from the platform's meme coin trading activities.
**Legal Action Warning: PUMPDOTFUN**
Burwick Law is pursuing a lawsuit on behalf of investors in memecoins pumpdotfun. If you lost money on any pumpdotfun memecoins, you may be entitled to compensation.
Read more below.
— Burwick Law (@BurwickLaw) January 15, 2025
The company raises concerns about the anonymity of the platform and how it has displayed illegal content.
The move comes as Pump.fun generated a weekly volume of $2.2 billion, according to online analyst Adam Tehc. 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 achieved profits exceeding $ 10,000, and only 298 wallets – about 0.00217% – have more than $ 1 million to do.
The analyst of the chain Adam Tehc, however, argues that the data does not accurately reflect the number of crypto traders who are actually profitable on the platform.
“If you have realized $10,000 trading Pump.fun tokens, you are a 0.412% main wallet,” said chain analyst Adam Tehc on January 10. X post. Real profits are calculated only after traders sell their assets.
Alon, the platform's anonymous co-founder, challenged the accuracy of Dune's data, saying it excludes purchases made after tokens were linked to Raydium, the decentralized exchange for Pump.fun signals.
He noted that 30% of Pump.fun wallets made only one transaction, implicating 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 an 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.
After legal proceedings were announced, a Burwick Law-based meme coin emerged, reaching a market cap of $700,000.
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