Uncertainty Clouds Pumpfun Token Plans Despite Official Rejection

• Pumpfun co-founder Alon denies rumors of a token launch but hints at user rewards.
• Crypto Beast and Wu Blockchain report a potential $PUMP token with a Dutch auction model.
• Legal challenges may impact the project’s ability to issue a token.

Pumpfun co-founder Alon has denied recent rumors about a potential Pumpfun token, calling them “wrong” and advising users to trust only official announcements from pumpdotfun. He emphasized that the team has been focused on improving its platform rather than working on a token. 

Still, he also stated that Pumpfun remains committed to “rewarding its users properly.” This has led to speculation that some form of token or incentive system could still be in the works.

Conflicting Reports on Pumpfun Token

Despite Alon’s denial, multiple reports suggest that Pumpfun is preparing to launch its own token. Crypto Beast claimed that Pumpfun would introduce a token called PUMP and hinted that an announcement could be imminent. 

Colin Wu of “Wu Blockchain” also reported that Pumpfun is planning to release a token using a Dutch auction model. In this pricing strategy, the initial price starts high and gradually decreases until buyers place bids. 

The report, based on insider information and internal documents, suggests that discussions with centralized exchanges are already underway to facilitate the token’s launch.

Tokenomics and Legal Challenges

An internal document from December 2024 reportedly laid out the planned token economics for Pumpfun’s token. According to Wu Blockchain, the total supply would be 420 million tokens, with an initial circulation of 210 million set aside for a public sale. 

Related: Solana-Based Pump.fun Becomes Top Player in Meme Token Deployment

The document also mentioned allocations for the team and early investors. Early investors would receive 22.05% of the supply. The team would control 25%, both subject to a vesting schedule with a one-year cliff and three years of monthly unlocking. 

While these details suggest that plans for a token have been in place for some time, the legal landscape could complicate the launch. 

For instance, Pumpfun has reportedly generated approximately $572 million in fees and transferred $386.8 million to Kraken. However, recent lawsuits filed by U.S. lawyers against the platform may impact whether the token will move forward as planned.

Pumpfun’s Legal Issues 

U.S. law firms Burwick Law and Wolf Popper LLP sent a cease-and-desist letter to Pumpfun on Feb. 5, accusing the platform of using the DOGSHIT2 token to impersonate their firms. 

Related: Pump.fun Receives Cease and Desist Letters From Two US Law Firms

They claim the token was meant to mislead investors and pressure plaintiffs involved in legal cases. Burwick Law denounced the move and pledged to take legal action.

Meanwhile, the speculation about a Pumpfun token launch drove a surge in trading activity. Uniswap experienced a 300% spike in volume, with related token prices rising 15% in an hour. The sharp increase suggests investors remain engaged even with ongoing legal disputes.