Pumpfun Co-Founder Denies Token Launch and IPO Rumors, But Rewards for Users Are Still on the Table

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.

Pumpfun co-founder Alon has denied rumors regarding a token launch and IPO, calling the reports “wrong” and advising users to disregard any information not directly confirmed by the team in a post on X today.

The statement follows a storm of online leaks and heated discussions, largely fueled by internal documents allegedly obtained by blockchain media WuBlockchain.

Alon addressed the rumors, stating, “I would advise you not to listen to anything that didn’t directly come from Pumpfun.”

However, despite the strong denial, Pumpfun's plans for rewarding its users have not been ruled out, as Alon added, "The team has always been dedicated to rewarding its users handsomely. Good things take time!"

Token launch documents leak amid legal chaos

WuBlockchain responded to Alon's denial, calling it disingenuous. "It's practically common knowledge that Pumpfun intends to issue tokens through a Dutch auction on the CEXs. Please don't try to deceive us," they said. The team first broke the news of Pumpfun's alleged token plans when they published an article detailing 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 set to receive 22.05% of the supply, and the team has secured a 25% slice. Both allocations are subject to 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 already transferred to Kraken. In the meantime, 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 heart of the legal storm is the notorious "Dog Shit Going Nowhere" (DOGSHIT2) token. Burwick Law's cease-and-desist letter demanded its immediate removal, claiming the token was unlawfully using the law firms' names and logos to deceive investors.

The firms stated, "We have no affiliation, endorsement, or ownership interest in the Dogshit2 token or any related assets. To put it simply, our firms did not launch any memecoins on-chain." The letter also accused Pumpfun of collaborating with third parties to create tokens that harass plaintiffs involved in ongoing litigation.

Burwick Law warned that these actions constitute a dangerous misuse of blockchain technologies, calling it an attempt to obstruct justice. The law firms said they will pursue legal remedies "to the fullest extent permitted by law."

"Investors are strongly advised to exercise extreme caution," the firm warned. Burwick Law added that they will work closely with government authorities to hold those responsible for fraudulent market practices accountable.

Despite these serious legal threats, once rumors of a possible Pumpfun token launch hit X (formerly Twitter), trading volumes went through the roof. On February 9, crypto influencer Gordon shared leaked details about the token, triggering immediate market activity.

Uniswap experienced a 300% increase in trading volumes for Pumpfun-related tokens within an hour. At 15:30 UTC, trades rapidly escalated from 10,000 tokens per hour to 40,000.

The prices followed suit, with CoinGecko data showing Pumpfun-related tokens surging 15%, moving from $0.50 to $0.575 in just one hour.

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