TLDR

• A US law firm, Burwick Law, is preparing legal action against Solana-based platform Pump.fun over alleged investor harm and controversial promotional activities
• Only 0.4% of Pump.fun traders (55,012 wallets out of 13.4 million) have made profits exceeding $10,000
• The platform has been responsible for creating over 6 million tokens since its January 2024 launch
• Pump.fun’s livestreaming feature was suspended after users performed extreme and unethical stunts to promote tokens
• The UK Financial Conduct Authority banned its residents from accessing the platform in December 2024

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A New York-based law firm has announced plans to pursue legal action against Pump.fun, a popular Solana-based meme coin launchpad, citing concerns over investor losses and questionable platform practices. Burwick Law, which recently tackled the Hawk Tuah meme coin case, made the announcement via X on Wednesday, January 15, 2025.

The platform, which launched in January 2024, has become a major player in the cryptocurrency space, facilitating the creation of more than 6 million tokens. However, recent data analysis has revealed troubling statistics about user success rates on the platform.

According to Dune Analytics data analyst Adam Tehc, only 0.4% of traders on Pump.fun have managed to profit more than $10,000. This translates to just 55,012 wallets out of over 13.4 million on the platform. Even more striking is the fact that only 294 wallets have achieved profits exceeding $1 million.

Burwick Law’s announcement highlighted several serious allegations against the platform. The firm claims Pump.fun has collected hundreds of millions of dollars in fees while allowing various forms of inappropriate content to flourish on its platform, including displays of illicit drug use, self-harm, racism, and antisocial behavior.

If you’ve been affected, fill out this no-cost, no-obligation intake form: https://t.co/c9ak4AThsG.

Today, Burwick Law is announcing publicly that we are pursuing legal action on behalf of investors in pumpdotfun memecoins. This announcement follows months of working alongside…

— Burwick Law (@BurwickLaw) January 15, 2025

The platform’s controversial livestreaming feature, now suspended, drew particular criticism. Users would perform extreme stunts to promote their tokens, with some incidents reportedly involving animal abuse and a faked suicide attempt. These events led to the feature’s eventual suspension in November 2024.

The UK Financial Conduct Authority took action against the platform in December 2024, implementing a ban that prevents UK residents from accessing Pump.fun. This regulatory move added to the growing list of concerns about the platform’s operations.

Burwick Law has issued a call for affected investors to come forward. The firm states it has been working with individuals seeking compensation after losing money to meme coins, failed projects, and unfulfilled promises on the platform.

The platform’s dominance in the Solana network has been notable, with data showing that Pump.fun was responsible for approximately 70% of all transactions over certain periods. This level of activity peaked following the suspension of its streaming feature in November.

The law firm’s announcement came with standard legal disclaimers, noting it as “attorney advertising” and stating that “no outcomes guaranteed” and “past results do not guarantee future results.”

Questions have been raised about the accountability of Pump.fun’s anonymous creators, particularly in light of the platform’s impact on retail investors. The disparity between the small percentage of successful traders and the vast majority who haven’t achieved notable profits has become a central point of concern.

Despite operating as a platform that promotes itself as making token creation accessible to users without technical expertise, critics argue that Pump.fun has created an environment where a small minority benefits at the expense of many others.

The platform has maintained a strong presence in the meme coin sector throughout its operation, despite mounting criticism and regulatory challenges. Over the past week leading up to these developments, Solana’s native token (SOL) showed a 12% increase in value.

Recent transaction data indicates that Pump.fun continues to handle a large portion of Solana network activity, even after implementing changes to its operational structure following the streaming feature suspension.

Attempts to obtain comment from Pump.fun regarding these developments have gone unanswered as of the time of publication.