Pumpfun co-founder Alon shot down speculation about a token launch and IPO, calling the reports “wrong” and urging users to ignore anything not directly confirmed by the team in a post on X today.
The statement of course came after a storm of online leaks and heated discussions, largely fueled by internal documents allegedly obtained by blockchain media WuBlockchain.
Alon addressed the rumors, saying , “I would advise you all not to listen to anything that didn’t directly come from Pumpfun.”
But despite the strong denial, Pumpfun’s plans for rewarding its users haven’t been ruled out, as Alon added, “The team has always been committed to rewarding its users properly. Good things take time!”
Token launch documents leak amid legal chaos
WuBlockchain responded to Alon’s denial, calling it deceptive. “It is almost a public fact that Pumpfun plans to issue tokens using the Dutch auction inside the CEXs. Please don’t lie,” they said . The team first blew the lid off Pumpfun’s alleged token plans when they published an article outlining the company’s token issuance strategy.
The documents revealed that Pumpfun planned to issue 420 million tokens, with 210 million allocated for public sale through a Dutch auction. Early investors are supposed to get 22.05% of the supply, and the team has secured a 25% slice. Both allocations come with a 1-year cliff and monthly unlocking over three years.
WuBlockchain also alleged that Pumpfun has collected $572 million in fees, with $386.8 million of that already transferred to Kraken. Meanwhile, law firms Burwick Law and Wolf Popper LLP hit Pumpfun with a cease-and-desist letter on February 5, accusing the platform of deploying tokens designed to impersonate their firms.
DOGSHIT2 token scandal adds to the drama
At the center of the legal storm is the infamous “Dog Shit Going Nowhere” (DOGSHIT2) token. Burwick Law’s cease-and-desist letter demanded its immediate removal, claiming the token was illegally using the law firms’ names and logos to mislead investors.
The firms said, “We have no affiliation, endorsement, or ownership interest in the Dogshit2 token or any related assets. Simply put, our firms have not launched any memecoins on-chain.” The letter also accused Pumpfun of working with third parties to create tokens that intimidate plaintiffs involved in ongoing litigation.
Burwick Law warned that these actions represent a dangerous misuse of blockchain technologies, calling it an attempt to disrupt justice. The law firms said legal remedies would be pursued to the “fullest extent of the law.”
“Investors should be extremely cautious,” the firm warned. Burwick Law added that they would work closely with government authorities to hold those responsible for fraudulent market practices accountable.
Despite these serious legal threats, as soon as the rumors of a potential Pumpfun token launch hit X (formerly Twitter), trading volumes exploded. On February 9, crypto influencer Gordon shared leaked details about the token, triggering immediate market activity.
Uniswap recorded a 300% increase in trading volumes for Pumpfun-related tokens within an hour. At 15:30 UTC, trades skyrocketed from 10,000 tokens per hour to 40,000.
Prices followed the same upward trajectory. CoinGecko data showed Pumpfun-related tokens jumping 15%, moving from $0.50 to $0.575 in just one hour.
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