PumpFun Denies Rumors of Token Launch and IPO, Co-Founder Calls Reports "Wrong"

PumpFun, a prominent player in the cryptocurrency world, has recently been at the center of swirling rumors about a potential token launch and Initial Public Offering (IPO).

These speculations reached a fever pitch after internal documents were allegedly leaked by blockchain media WuBlockchain. However, the co-founder of PumpFun, Alon, wasted no time in addressing the matter and flatly denied the claims.

In a recent post on X (formerly Twitter), Alon urged the crypto community to disregard the rumors and only rely on information directly communicated by the PumpFun team. Despite the strong denial, questions about PumpFun’s plans for user rewards and its ongoing legal challenges continue to fuel online discussion.

Source: x.com/@a1lon9

The Denial of the Token Launch and IPO

The speculation about a token launch and IPO began when WuBlockchain shared internal documents that seemingly outlined PumpFun’s token issuance strategy. According to these documents, the company planned to issue 420 million tokens, with a significant portion allocated for public sale via a Dutch auction.

However, Alon, in a statement released on X, immediately shot down these reports. He called the circulating information "wrong" and advised users not to pay attention to anything that hadn't come directly from PumpFun. "I would advise you all not to listen to anything that didn’t directly come from PumpFun," Alon said.

Despite this strong denial, Alon did not rule out the possibility of rewarding users in the future. He mentioned that the team was still committed to finding ways to reward its community but emphasized that "good things take time."

Read also: Pump.fun vs VVaifu.fun: Understanding the Differences

The Leaked Documents and Alleged Token Issuance Strategy

The leaked documents published by WuBlockchain caused a storm in the crypto community. According to these documents, PumpFun was planning to issue 420 million tokens, with 210 million tokens allocated for a public sale through a Dutch auction. 

Early investors were reportedly set to receive 22.05% of the token supply, while the team was to receive a 25% share, both with a 1-year cliff and monthly unlocks over three years.

Additionally, it was alleged that PumpFun had collected $572 million in fees, with $386.8 million of that already transferred to the cryptocurrency exchange Kraken. These revelations led to further speculations about the platform’s financial standing and plans.

The Legal Troubles: DOGSHIT2 Token Scandal

The rumors surrounding PumpFun were only compounded by the ongoing legal troubles the platform is facing. On February 5, two law firms—Burwick Law and Wolf Popper LLP—issued a cease-and-desist letter against PumpFun. The firms accused the platform of deploying tokens designed to impersonate their names, including the notorious "DOGSHIT2" token.

The law firms argued that the token, which used their logos and branding without authorization, misled investors and caused significant reputational damage. The firms made it clear that they had no affiliation with the token and would pursue legal action if necessary.

Burwick Law also warned that PumpFun’s actions represented a misuse of blockchain technology to disrupt ongoing litigation, urging investors to exercise caution.

Market Reaction and Trading Volumes

Despite the denial from PumpFun’s co-founder, the rumors surrounding the token launch led to a surge in trading activity. On February 9, crypto influencer Gordon shared the leaked details on X, which caused trading volumes for PumpFun-related tokens to spike significantly. Uniswap recorded a 300% increase in trading volume within just one hour, with the price of PumpFun-related tokens jumping by 15%.

While this surge in market activity was fueled by speculation, it highlighted the significant interest surrounding PumpFun, even amidst the uncertainty and legal challenges the platform is currently facing.

Read also: Pump.fun Hits $1.1M Daily Revenue After $MOODENG Meme Token Surge

Conclusion: What’s Next for PumpFun?

While the rumors of a token launch and IPO have been officially denied by PumpFun’s co-founder, the ongoing leaks and legal issues suggest that the platform’s future remains uncertain.

The community’s interest in the project is clear, but whether PumpFun will ultimately launch a token or pursue other avenues for rewarding users remains to be seen.

For now, Alon’s advice stands: only trust official statements from the PumpFun team. As always, the crypto world moves quickly, and only time will tell how these rumors and legal challenges unfold.

FAQs

1. Is PumpFun planning to launch a token?
PumpFun has officially denied rumors of a token launch and IPO. Co-founder Alon has urged users to disregard any unverified reports and to only trust official announcements.

2. What is the DOGSHIT2 token scandal about?
PumpFun is facing legal action from Burwick Law and Wolf Popper LLP for allegedly using the firms’ logos in the DOGSHIT2 token, which misled investors. The firms have issued a cease-and-desist letter demanding the token’s removal.

3. How did the market react to the rumors about PumpFun’s token?
Despite the denial from PumpFun’s team, trading volumes for PumpFun-related tokens surged by 300% in response to the leaked information. The price of related tokens also rose by 15%.

4. Will PumpFun reward its users?
While the company has not confirmed a token launch, co-founder Alon mentioned that the team remains committed to rewarding users, though “good things take time.”