Pump. Fun Battles Lawsuit While Token Recovers

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Pump. Fun’s $PUMP token has posted a modest 5.5% gain, rising to $0.003154 after a steep 67% post-launch drop. The recovery comes amid whale activity, aggressive buybacks, and renewed interest from institutional players, though serious legal and competitive threats loom.

Launched on July 12, 2025, through an Initial Coin Offering (ICO), Pump.fun sold 150 billion $PUMP tokens, 15% of its 1 trillion total supply. The project initially positioned itself as more than just a meme token launchpad, aiming to build a broader ecosystem for meme-driven finance. But shortly after its debut, the token’s value plummeted, triggering a crisis of confidence among investors.

To stabilize its market presence, Pum p.fun initiated a $31.3 million buyback program, funded by 25% of its protocol revenue. The platform also acquired Kolscan, a blockchain wallet tracking tool, to add transparency and attract more serious investors. These moves helped slow the bleeding, but the platform’s troubles were far from over.

A class-action lawsuit, filed by Burwick Law, accuses Pump. The fun of functioning like an “illegal casino,” encouraging risky speculative behavior under the guise of meme investing. The suit seeks $5.5 billion in damages and poses a significant legal and regulatory challenge to the project’s future.

Despite this, the token has shown surprising resilience. Blockchain analytics show that GSR, a venture capital firm, purchased $4.6 million worth of $PUMP on open markets, reflecting institutional interest. Additionally, open interest in $PUMP derivatives rose 6% to $743 million, and the funding rate turned positive, both indicators of growing market confidence.

However, the platform faces increasing competition. Rival projects like LetsBonk.fun are quickly gaining traction, forcing Pump.fun to double down on buybacks, acquisitions, and product rollouts to retain market relevance.

From a technical perspective, $PUMP recently broke out of a triple bottom pattern on the 1-hour chart, touching an intraday high of $0.00338 before pulling back. While initial volume supported the upward move, a large red delta candle, with over -53.4 million delta, signaled aggressive selling. The token is now consolidating above $0.00304, with near-term support at $0.00295 and resistance around $0.00320.

Pump.fun is in a make-or-break moment. Its ability to weather legal scrutiny while fending off rising competitors will determine whether $PUMP becomes a long-term player or fades into meme token history. For now, the project appears to be holding its ground, but the storm is far from over.