Pump.Fun (PUMP) Drops 25% To New Lows Following Legal Pressure, Airdrop Update

Pump.fun, a Solana-based memecoin launchpad, has made headlines again after its token, PUMP, plummeted to new lows. The token's value has dropped below $1 billion in market capitalization for the first time since its initial coin offering. Pump.fun was launched in January 2024 to facilitate the deployment of tokens and has generated over $775 million in revenue. The platform's PUMP token had a successful sale, raising $600 million in 12 minutes, but its value has since dropped 57.9%. The decline is partially due to an update on the token's upcoming airdrop, which has been met with backlash from the community. The airdrop was initially announced as "coming soon" but has been delayed, causing frustration among investors. The Pump.fun team has faced criticism from the community, with some calling it "one of the worst charts out right now." The platform is also facing legal troubles, with a class-action lawsuit filed against it in January alleging it acted as an unregistered securities exchange. The lawsuit has been amended to include Solana partners and is seeking rescission of Pump.fun transactions and compensatory damages. As of now, PUMP is trading at $0.0028, a 26.6% decline in the daily timeframe. Despite the decline, some community members remain hopeful that the cryptocurrency will reverse.