Pump.Fun Token Takes a Hit: Airdrop Delay and Legal Challenges Weigh In

The Pump token, native to Meme Coin Launchpad Pump.Fun, experienced a significant downturn on Thursday, July 24th. This decline came on the heels of the founder’s announcement that an anticipated airdrop would not be happening soon, coupled with the platform facing legal hurdles. The token’s value had been riding high on the promise of an airdrop, but the latest update has clearly dampened investor enthusiasm.

Summary of Key Points

Here are the main points to consider:

• The Pump token has plummeted by 52% since its peak on July 16, largely due to fading airdrop hype.
• The founder has confirmed that while an airdrop is still in the plans, it won’t be happening anytime soon.
• Legal complaints are now targeting Solana and Jito leadership under the US RICO law, adding another layer of complexity to the situation.

The Token’s Downward Trend

The token’s value dropped from a local high of $0.00369 to a low of $0.00305 within a 24-hour window. At the time of writing, it had slightly recovered to $0.003243, still down 11% for the day and over 40% for the week. This decline follows a steady sell-off since Pump.Fun’s launch earlier in the month. The token debuted at $0.004 and briefly reached an all-time high of $0.0068 on July 16 before losing momentum, now sitting over 52% below that climax.

Airdrop Expectations: A Dampened Enthusiasm

The decline in the token’s value deepened after Pump.Fun’s co-founder, Alon Cohen, stated that while an airdrop is still planned, it won’t arrive soon. In an interview, Cohen emphasized the team’s commitment to delivering a meaningful airdrop but prioritized execution and ecosystem growth over meeting a specific timeline. This announcement came a day after the token slipped under its initial coin offering price of $0.004, leading to further pressure from traders who were banking on a short-term distribution.

Legal Measures Expand to Include Solana and Jito

The legal pressure on Pump.Fun has intensified. On July 23, Burwick Law and Wolf Popper filed an amended lawsuit against Pump.Fun, also naming the Solana Foundation, Solana Labs, and members of the Jito team. The complaint accuses these parties of participating in a scheme that may have violated U.S. financial laws, including racketeering and securities laws. Notably, Solana co-founder Anatoly Yakovenko and Raj Gokal, among others, are listed as defendants. The lawsuit alleges that these individuals actively participated in designing the token and its fee structure, and that Pump.Fun failed to implement proper user checks, risking financial crime. As of now, the Solana Foundation and Jito Labs have not publicly responded to these allegations.