On February 9, a crypto news platform reported that Pump.fun had launched its own memecoin ($PUMP), distributing an airdrop and positioning itself at the forefront of DeFi innovation. The post claimed that $PUMP holders would gain exclusive access to platform features, creating significant value for token holders.

However, Alon Cohen, co-founder of Pump.fun, swiftly denied these rumors, insisting that the team remains focused on improving the product and properly rewarding users.

Co-Founder Alon Cohen Refutes Token Launch Claims

Alon took to X (formerly Twitter) to shut down the speculation surrounding $PUMP, calling the reports false and misleading.

“While the Pump.fun team has mainly been focused on improving the product in its 1-year history, the team has always been committed to rewarding its users properly,” Cohen wrote.

He further emphasized that “good things take time”, suggesting that any potential plans for a token launch—if they exist—are still a work in progress.

Despite this denial, crypto news outlet WuBlockchain claimed that Pump.fun has, in fact, been working on a token launch behind the scenes. According to their report, the project has already established a token distribution strategy that allegedly benefits insiders significantly.

Leaked Documents Suggest Insider Token Distribution Strategy

WuBlockchain’s report provided details on Pump.fun’s alleged tokenomics, revealing that early investors and insiders would control nearly half of the token supply:

• Early investors would receive 22.05% of the total token supply.
• The team would control 25% with a one-year lockup and gradual vesting over the next three years.

Adding to the controversy, Pump.fun has reportedly generated over $572 million in transaction fees, with $386.8 million being transferred to Kraken. These figures have not been officially confirmed, but if true, they suggest that the project is already highly profitable—raising further questions about its future plans and token launch intentions.

Lawsuit Over DOGSHIT2 Token Adds to Pump.fun’s Legal Woes

Pump.fun is also facing legal challenges, as Burwick Law and Wolf Popper LLP filed a class-action lawsuit against the platform in January. The lawsuit alleges that Pump.fun impersonated their firm and misled investors with a fraudulent DOGSHIT2 token.

According to Burwick Law, Pump.fun used their name and logo without authorization, tricking investors into believing the project had legal backing. The law firms are now demanding the immediate removal of the token and are working with authorities to pursue further legal action.

This lawsuit has amplified concerns about Pump.fun’s commitment to transparency, as investors now wonder whether the platform is involved in other questionable practices.

With denials from its co-founder, leaked tokenomics documents, and a pending lawsuit, Pump.fun finds itself at a critical crossroads.

If the $PUMP token rumors turn out to be true, Cohen’s denial could damage investor trust. On the other hand, if Pump.fun truly has no plans for a token, the insider distribution leak raises serious questions about where this information came from and who stands to benefit.

As the meme coin market continues to grow, Pump.fun remains a dominant player in the space. However, its reputation—and legal standing—will depend on how it navigates these controversies in the coming weeks.