The meme coin platform Pump.fun, often dubbed the “meme token factory,” is under fire after facing a class action lawsuit, crashing token prices, and delayed airdrop issues. Investors are now grappling with significant losses as the PUMP token dropped nearly 45% from its peak.
Airdrop Delay Triggers Investor Backlash
Pump.fun co-founder Alon Cohen recently confirmed that the anticipated airdrop “will not happen shortly.” The statement sent shockwaves through the crypto community, immediately triggering an 18.7% plunge in PUMP’s market price. As of this writing, PUMP trades at $0.003, reflecting a 42.4% decline over the past week, according to CoinGecko.
Allon talks about potentially acquiring more companies/products like KOLscan,
Potentially hinting to acquiring Launch on Pump pic.twitter.com/eLRVxIJ8Sc
— ً (@0xsyste) July 23, 2025
$5 Billion Class Action Filed Under RICO Act
Burwick Law has filed a class action lawsuit against Pump.fun and several prominent blockchain entities, including Solana Labs, Solana Foundation, Jito Labs, and Jito Foundation. The lawsuit accuses the defendants of operating an illegal gambling business, offering unregistered securities, and deceptive business practices.
The case was filed under the Organized Crime and Corrupt Practices Act (RICO), with estimated user losses ranging between $4 billion $5.5 billion based on on-chain data.
According to the complaint, Pump.fun has been likened to a “slot machine” that mass-produces meme tokens without proper identity checks or regulatory compliance. The plaintiffs allege insider and bot-driven manipulation through the use of bonding curves that favored early actors and algorithmic frontrunning.
Solana and Jito Under Scrutiny
Solana Labs and the Solana Foundation are being accused of monetizing user activity through block fees, with Jito Labs allegedly facilitating frontrunning using Maximal Extractable Value (MEV) tools. The suit challenges the claim that these platforms acted merely as neutral infrastructure providers.
LetsBonk Launches Strategic Buyback Program
As Pump.fun’s reputation takes a hit, its key competitor, LetsBonk, is stepping up efforts to attract disgruntled users. The meme coin launchpad announced a new initiative where 1% of its income from the marketing fund will be redirected to buy back high-performing tokens listed on its platform.
Let ’sBonk’s founder Tom confirmed that buybacks will occur weekly, targeting trading pairs that meet “high performance” metrics. The platform, according to data from Dune, generated $1.4 million in fees within 24 hours. Its ecosystem has already reached over $1 billion in token capitalization, led by tokens such as Useless Coin and ANI.
PUMP’s ICO Fallout Adds Fuel to the Fire
The PUMP token’s presale ended on July 12, with 500 million tokens sold in just 12 minutes. However, nearly 60% of ICO participants offloaded their holdings shortly after, either transferring them to centralized exchanges or alternate wallets.
The token hit a high of $0.0068 but has since dropped by 45%, now trading below its initial coin offering price as of July 22.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
