The last shot was banned, and Pump.fun's $1 billion IC0 dream is in lingering?

Author: Fairy, ChainCatcher

Edited by: TB, ChainCatcher

After a shot, he was "thrown".

At the critical node of TGE, the official and founder X account of Pump.fun was banned, and the shadow of multiple legal lawsuits has emerged again.

Seeing that it was about to enter the "monetization" threshold, this voiceless node seemed particularly delicate. Account ban, lawsuit, fog, how many highlight moments are left for Pump.fun?

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

Pump.fun is no longer the peak. According to Defilama 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 remained near $1 million a day recently.

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

Picture: Defillama

According to The Block and Blockworks, Pump.fun plans to raise up to $1 billion through ICO and consider introducing a "revenue sharing" mechanism. Its ICO is valued at US$4 billion, with a total token supply cap of 1 trillion, and is recommended to private equity investors at a price of US$0.004 per coin. In terms of token allocation, 25% is expected to be available to the public, and about 10% is reserved for airdrops.

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

Just this last 4 days after the announcement was released, the plot took a sharp turn. Pump.fun's official and its founder's X account was suddenly banned. This account closure storm has spread quietly as early as last week. Many "local dogs" KOL and TG BOT trading platform X accounts that are active in the Meme currency ecosystem have been blocked one after another, including BullX, Bloom, Nova, etc. The Meme ecosystem is in turmoil and fog, and Pump.fun's coin issuance plan may also be forced to press the pause button.

Multiple Risks: Class Action and Founder’s Old Account

There are many different opinions about the sudden ban on the account in the community. Some people believe that this may be related to the project's violation of the API usage regulations of the X platform and is suspected of crawling "black market" data; some people speculate that the ban may be a crackdown on "over-extracting liquidity" behavior, and even point to a deeper potential fraud mechanism. It also believes that X is tightening the promotion and supervision of high-volatility and high-risk financial products such as Meme coins.

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

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

After entering 2025, there have been successive class action lawsuits against the platform and its executives 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 alleging that the project illegally charged nearly $500 million in fees while suspected of violating U.S. securities laws, describing its operation as a "new convergence of Ponzi schemes and pulling shipments."

Even deeper than the storm, there is the controversy surrounding co-founder Dylan Kerler. Dylan Kerler was once questioned about the involvement of the "junk coins" Rug Pull in his early years. According to a WIRED investigation, a developer using the name Dylan Kerler released eight crypto projects in 2017, with eBitcoinCash and EthereumCash bringing it about $75,000 in ETH.

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

Community suffering Pump.fun has been a long time

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

Picture: Embers

However, the user's revenue data is the opposite. According to Dune, over 60% of the approximately 4.257 million addresses with more than 10 token transactions on pump.fun have been in a loss state in the past six months. The losses of approximately 2.408 million addresses (56.6%) ranged from US$0 to US$1,000, and about 1,700 addresses lost more than US$100,000, of which 46 addresses lost more than US$1 million.

Among the profitable addresses, most of them have very limited returns, with the largest number of addresses with profits ranging from USD 0 to USD 1,000, reaching 916,500 (21.5%).

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

Of the 3566 creators counted by Solanafloor, 83.4% 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 are able to earn more than $5,000.

It is undeniable that Pump.fun shines in the Meme craze and becomes an important driving force for market carnival. But as the popularity cools down sharply and the storm of bans suddenly arose, this once feast is cooling down quickly. Faced with a situation where the right time, place, and people are not good, how can Pump.fun break the deadlock to usher in a second spring?