Written by: Fairy, ChainCatcher

Editor: TB, ChainCatcher

At the last moment, he was "blocked".

At the critical juncture of the upcoming TGE, the official account of Pump.fun and the founder X’s account were banned, and the shadow of multiple legal proceedings resurfaced.

As it is about to enter the "monetization" stage, this silent node seems particularly delicate. Account suspension, lawsuits, fog, how many highlights are left for Pump.fun?

The dream of issuing coins has come to an abrupt end?

Pump.fun has long since lost its peak. According to Deflama data, the platform hit a peak of over $7 million in daily revenue on January 23, but has continued to decline since then, and has recently remained around $1 million per day.

At the same time, the overall heat of the Meme market has cooled down, and Meme launch platforms have sprung up like mushrooms after rain, and the market competition is fierce. During this period, although Pump.fun tried to launch its own AMM and "live broadcast issuance" and other innovative gameplay, it did not cause much splash. Under multiple pressures, the community regarded the issuance of coins as the "last cut" of Pump.fun.

 Photo: Deflama

According to The Block and Blockworks, Pump.fun plans to raise up to $1 billion through ICO and is considering introducing a "revenue sharing" mechanism. Its ICO valuation is $4 billion, and the total token supply is expected to be capped at 1 trillion, which will be offered to private investors at $0.004 per token. In terms of token distribution, it is expected that 25% will be sold to the public, and about 10% will be reserved for airdrops.

In addition, crypto KOL AB Kuai.Dong disclosed the possible opening schedule of Pump.fun: pre-sale and launch information will be announced on June 21, a three-day "new stock" event will be launched on June 25, and the official trading time will be announced on June 28.

Just 4 days before the announcement, the situation took a sharp turn for the worse. Pump.fun officials and the X account of its founder were suddenly banned. This banning storm had quietly spread as early as last week. Many "local dog" KOLs and TG BOT trading platform X accounts active in the Meme coin ecosystem were banned one after another, including BullX, Bloom, Nova, etc. The Meme ecosystem fell into shock and fog, and Pump.fun's coin issuance plan may also be forced to press the pause button.

Multiple risks: class action lawsuits and founders’ old accounts

There are many different opinions in the community about the sudden wave of account suspensions. Some believe that this may be related to the project violating the API usage regulations of the X platform and suspected of grabbing "black market" data; others speculate that the account suspension may be a crackdown on "excessive withdrawal of liquidity" and even point to a deeper potential fraud mechanism. There are also voices that believe that X is tightening the promotion and supervision of high-volatility, high-risk financial products such as Meme coins.

But what is more worthy of attention is the series of legal proceedings that Pump.fun is facing.

In December 2024, the UK Financial Conduct Authority (FCA) issued a severe warning to Pump.fun, stating that it provided financial services or products without permission. Pump.fun subsequently banned UK users from accessing the website.

After entering 2025, class action lawsuits against the platform and its executives have also appeared in North America:

• On January 16, BurwickLaw, a US crypto law firm, sued Pump.fun on behalf of several damaged investors;
• On January 30, investor Diego Aguilar filed a class-action lawsuit, accusing the project of illegally collecting nearly $500 million in fees while allegedly violating U.S. securities laws, and describing its operations as "a new fusion of a Ponzi scheme and a pump and dump."

Even deeper than the storm is the controversy surrounding co-founder Dylan Kerler. Dylan Kerler was once suspected of being involved in many "junk coin" rug pulls in the early years. According to WIRED's investigation, a developer using the name Dylan Kerler issued 8 crypto projects in 2017, of which eBitcoinCash and EthereumCash brought him about $75,000 in ETH.

The developer promoted these currencies on BitcoinTalk and then sold them at a high point, causing EthereumCash to plummet 88%. The promotional account "DOMAINBROKER" once publicly disclosed an email address with the name of Dylan Kerler. The person also claimed to be from Brighton, England in the Telegram group. Pump.fun co-founder Dylan Kerler happened to have a voter registration record in the area, and the same address was used in the company registration documents.

The community has suffered from Pump.fun for a long time

In fact, the community has long been "complaining" about Pump.fun. Pump.fun transfers the accumulated fee income to the Kraken exchange every one to two weeks. Over the past year, the platform has sold a total of about 4.179 million SOLs, with a cumulative amount of up to US$751 million, and an average selling price of about US$179.89. ​

 Image: Embers

However, the user's profit data is the opposite. According to Dune, in the past 6 months, more than 60% of the approximately 4.257 million addresses that have conducted more than 10 token transactions on pump.fun are in a loss state. About 2.408 million addresses (56.6%) have losses between $0 and $1,000, about 1,700 addresses have losses of more than $100,000, and 46 addresses have losses of more than $1 million.

Among the addresses that are profitable, most of them have very limited income. The number of addresses with profit amounts between 0 and 1,000 US dollars is the largest, reaching 916,500 (21.5%).

In addition, since Pump.fun introduced creator revenue sharing on May 12, most people have not received much of the "cake".

Among the 3,566 creators counted by Solanafloor, 83.4% of creators earn less than $1,000, of which 34.9% earn less than $100, and 48.5% earn between $100 and $1,000. Only 1.8% of creators earn more than $5,000.

It is undeniable that Pump.fun once shone brightly in the meme craze and became an important driving force of the market carnival. However, with the rapid cooling of the popularity and the sudden emergence of account suspension storms, this once feast is cooling down rapidly. Faced with a situation where the time, place and people are not favorable, how can Pump.fun break through and usher in a second spring?