Pump.fun has also been criticized because it facilitates the ease of launching and marketing coins with minimal oversight. In January, the was named in a proposed class-action lawsuit alleging that it offered unregistered securities and generated nearly $500 million in fees from highly volatile tokens.
The lawsuit is still pending, and no formal regulatory action has been taken. Meanwhile, recent reports claim Pump.fun is planning to raise $1 billion at a $4 billion valuation, further intensifying scrutiny.
The suspension of accounts associated with exchanges, along with legal and regulatory concerns, has renewed a discussion on the dangers of unregulated meme coin trading. Although Pump.fun and similar services are still active, things remain volatile as both regulators and social media platforms consider their next steps.
