cryptobriefing.com
Burwick Law has initiated legal proceedings against Pump.fun on behalf of investors who suffered losses from the platform’s meme coin trading activities.
**LEGAL ACTION ALERT: PUMPDOTFUN**
Burwick Law is pursuing legal action on behalf of investors in pumpdotfun memecoins. If you lost money on any pumpdotfun memecoins, you may be entitled to compensation.
Read more below.
— Burwick Law (@BurwickLaw) January 15, 2025
The firm highlights concerns over the platform’s anonymity and its display of illicit content.
The action comes as Pump.fun generated a weekly volume of $2.2 billion, according to on-chain analyst Adam Tehc’s Dune dashboard.
A recent report based on Dune Analytics data tracking Pump.fun showed that out of 14 million wallet addresses on the platform, only 57,144 users have realized profits exceeding $10,000, while just 298 wallets—approximately 0.00217%—have made over $1 million.
On-chain analyst Adam Tehc, however, argues that the data doesn’t accurately reflect the number of crypto traders who are truly profitable on the platform.
“If you’ve realized $10,000 trading Pump.fun’s tokens, you’re a top 0.412% wallet,” on-chain analyst Adam Tehc said in a Jan. 10 X post. Realized profits are only calculated after traders have sold their assets.
Alon, the platform’s anonymous co-founder, challenged the Dune data’s accuracy, stating it excludes purchases made after tokens are bonded to Raydium, the decentralized exchange for Pump.fun tokens.
He noted that 30% of Pump.fun wallets have conducted only one transaction, attributing this to bot or AI activity.
According to Lookonchain, the platform has earned 2,016,391 SOL tokens, equivalent to approximately $398 million in revenue by January 2, 2025.
The legal action coincides with Solana’s DeFi activity approaching its all-time high of $9.5 billion in TVL, with current figures at $9 billion.
Pump.fun has dominated token creation on Solana, accounting for over 70% of new tokens on certain days.
Following the announcement of legal proceedings, a meme coin based on Burwick Law emerged, reaching a $700,000 market cap.