Pumpfun co-founder Alon has denied rumours that the protocol has plans to issue a native token, following internal leaks claiming that a native digital currency is on the way. Alon has advised users to only trust official sources.
Wu Blockchain, a well-known crypto news outlet, claimed to have gained access to internal documents detailing Pumpfun’s plans for the issuance of a native token. However, Alon, the founder of the protocol, quickly came forward to categorically deny these rumors, calling them “erroneous” and urging users to ignore any information that does not come directly from the platform’s official team.
However, despite Alon’s statements, speculation continues, leaving many wondering if Pumpfun will actually join the growing list of crypto projects with their own digital assets.
SOLANA BUYSWu Blockchain Reveals Pumpfun's Alleged Token Plans
The controversy surrounding the potential launch of a Pumpfun native token exploded thanks to a report from Wu Blockchain. The news outlet claimed to have obtained documents detailing a token issuance strategy by the Solana-based protocol.
According to these documents, Pumpfun plans to issue 420 million tokens, with 210 million earmarked for public sale via a Dutch auction. Additionally, it is alleged that early investors will receive 22,05% of the token supply, while the team will secure 25%. These allocations would come with an initial lock-up period of one year, followed by a monthly unlocking for three years. Wu Blockchain also reported that Pumpfun has accumulated $572 million USD in fees, of which $386,8 million USD has already been transferred to a CEX to develop the exposed plan.
While the outlet has stressed that these issuance plans may change, and that the protocol is facing a lawsuit in New York that could impact the potential launch of a token, the revelation of these alleged plans has caused a stir in the crypto community, fueling speculation and putting Pumpfun back in the spotlight.
In late January, law firms Burwick Law and Wolf Popper filed a lawsuit against Pumpfun in New York, alleging that the protocol violated their intellectual property rights. The law firms are reportedly demanding that Pumpfun immediately remove several tokens that unauthorizedly use the names and logos of its clients, such as the “Dogshit2” token.
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Alon denies rumors of a token
In response to the growing speculation, Pumpfun co-founder Alon issued a statement denying rumors about a token launch and an initial public offering (ICO). Alon called the reports “erroneous” and urged users to ignore any information that has not been directly confirmed by the Pumpfun team on their official channels.
Despite the denial, however, Alon hinted that the team is committed to rewarding its users appropriately, though without providing specific details on how this initiative would be carried out.
SOLANA BUYSSo far, the community response has been mixed, with some supporting Alon’s stance, and others being skeptical. Wu Blockchain responded to Alon’s denial, calling it “misleading” and stating that it is a “public fact” that Pumpfun plans to issue tokens via a Dutch auction on centralized exchanges (CEX).
“Pumpfun co-founder Alon called it “rumors about a possible Pump Fun token,” but also hinted that it was “committed to rewarding its users appropriately.”
The WuBlockchain team obtained the detailed token issuance preparation documents that Pumpfun provided to CEXs.
However, the exact timing of the token issuance has not been determined, especially since Pumpfun has recently faced a large number of lawsuits.”, the outlet said.
The public spat between Wu Blockchain and Alon further escalated the controversy, leaving the crypto community divided and confused about the true situation. Amidst the uncertainty, many investors opted for caution, waiting for more clarity before making any decisions about their Pumpfun investments.
The rise of Pumpfun and its importance in Solana
Regardless of whether or not Pumpfun will launch a token in the future, there is no denying its growing importance within the Solana ecosystem. The platform has quickly gained popularity, managing to stand out in the market, mainly by facilitating the creation and trading of memecoins.
Pumpfun has been responsible for a high percentage of transactions on the Solana blockchain, demonstrating its popularity and ability to handle large transaction volumes. With this, the protocol has also proven to be a catalyst for trading activity on Solana.
The data from the DeFi platform Llama show that this protocol has accumulated fees exceeding $1.500 billion and that it moves a current volume of about $200 million per day.
