The planned salary increase, originally targeting $1 billion at a $4 billion valuation, was pushed in mid-July. Social media platform X suspended Pump.Fun and Funder’s accounts on June 16th. The auction was originally scheduled for June 25th at a valuation of $4 billion.
Solana-based Memecoin Launchpad Pump.fun has once again delayed public token auctions amid growing concerns of legal uncertainty and platform moderation.
The planned salary increase, originally targeting $1 billion at a $4 billion valuation, was reportedly pushed in mid-July.
This is the latest in a series of postponements that have disrupt the platform’s roadmap since the launch of plans launched in 2024.
Pump.Fun originally announced its auction date June 25th, but the latest delays follow the pattern of installation challenges.
No official reasons have been cited for this week’s postponement, but the timing is closely aligned with increasing legal pressure in several jurisdictions, including aggressive class action lawsuits in the United States and warnings of intellectual property violations.
A social media pause added to the confusion, creating uncertainty for the project’s short-term prospects.
As lawsuits escalate, billions of dollars are under threat
At the heart of Pump.fun’s troubles is a class action lawsuit filed by Burwick Law on January 15th.
Legal complaints denounce the platform for securities law violations and token price manipulation for its own benefit.
According to the filing, investors suffered significant losses as the plaintiffs described them as artificially inflated valuations designed to benefit LaunchPad’s internal business.
The platform that allows users to create and promote MemeCoin in Solana is also being attacked to enable projects that allegedly misuse copyrighted names and brands.
In February, Burwick Law teamed up with Wolf Popper LLP to issue a halt and assumed letter targeting Pump.fun.
The letter highlights repeated IP breaches with user-generated tokens.
Pump.Fun has not responded publicly to the lawsuit, but Legal Cloud has raised questions about the planned $1 billion salary increase.
Repeated delays and lack of transparency made it difficult for institutional and retail investors to measure the platform’s legal status, further complicating the valuation prior to issuing tokens.
X Account Suspension is added to the mounting setback
On June 16th, social media platform X suspended the official accounts of both Pump.Fun and its founder.
The ban only lasted a few days before the accounts were revived, but encouraged speculation about enforcement actions related to ongoing legal scrutiny.
Neither Pump.Fun nor X revealed the reason for the takedown.
This is not the first time the Crypto platform has been hit by such a halt.
Other distributed projects and cryptographic tools have also faced a temporary ban in recent months, but in many cases they have not been made public.
However, the timing of the Pump.Fun ban is only attracting particular attention within the Crypto community just a few days before the auction update.
Despite his return to work, the suspension disrupted launchpad communications at a critical time.
As public auctions are already behind, temporary losses in key outreach channels may have further eroded user trust.
Public auctions were currently expected in mid-July, but uncertainty remains
Crypto journalist Colin Wu, who beat the news on X, said a new target date for Pump.Fun token sales is set for mid-July.
No confirmed dates have been confirmed by the team.
The project was originally intended to raise $1 billion from token events. This would value the platform at $4 billion.
The prominent rise of Pump.Fun was driven by a wave of speculative activity around the Solana blockchain meme tokens.
However, a combination of lawsuits, brand misuse allegations and social media bans could put long-term viability at stakes if not addressed prior to the launch of the token.
