- Pumpfun co-founder Alon refutes speculations of token launch but teases user rewards.
- Crypto Beast and Wu Blockchain hint at a potential $PUMP token introduction through a Dutch auction model.
- Legal hurdles may pose challenges to the project’s token issuance.
In response to recent rumors circulating the crypto community, Pumpfun co-founder Alon has dismissed talks of an upcoming Pumpfun token, labeling them as “inaccurate” and advising followers to rely solely on official communications from pumpdotfun. He stressed that the team’s primary focus has been on enhancing the platform rather than delving into token development.
However, Alon did mention Pumpfun’s unwavering commitment to “fairly rewarding its user base,” sparking speculation about potential token or incentive initiatives that might be in the pipeline.
Conflicting Reports on Pumpfun Token
Despite Alon’s denial, various reports suggest that Pumpfun is gearing up for the launch of its native token. Crypto Beast hinted at the introduction of a token named PUMP and implied that an official announcement could be on the horizon.
Colin Wu, renowned for his insights on blockchain developments, also indicated that Pumpfun is considering a token release utilizing a Dutch auction model. This unique pricing mechanism involves starting with a high initial price that gradually decreases as buyers place bids.
Insider information and internal documents hint at ongoing discussions with centralized exchanges to facilitate the token’s debut.
Tokenomics and Legal Challenges
A leaked document from December 2024 purportedly outlined the planned token economics for Pumpfun’s token. According to Wu Blockchain, the total token supply would amount to 420 million tokens, with 210 million designated for a public sale at the outset.
The document also detailed allocations for early investors and the team, with early investors slated to receive 22.05% of the token supply. The team’s share would be 25%, subject to a vesting schedule encompassing a one-year cliff and three years of monthly unlocking.
Despite these strategic preparations, the legal landscape may pose obstacles to the token’s rollout.
For instance, Pumpfun reportedly accumulated approximately $572 million in fees and transferred $386.8 million to Kraken. Recent legal actions initiated by U.S. attorneys against the platform could potentially hinder the token’s progression as envisioned.
Pumpfun’s Legal Issues
U.S. law firms Burwick Law and Wolf Popper LLP issued a cease-and-desist notice to Pumpfun on Feb. 5, alleging that the platform employed the DOGSHIT2 token to impersonate their firms, misleading investors and exerting pressure on plaintiffs involved in legal disputes.
The firms condemned this act and vowed to pursue legal recourse against Pumpfun.
Despite these legal entanglements, the anticipation surrounding a potential Pumpfun token launch spurred heightened trading activity. Uniswap witnessed a 300% surge in volume, with associated token prices experiencing a 15% upsurge within an hour. This fervent market response indicates sustained investor interest despite ongoing legal challenges.
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