USDPump.fun Founder Denies Token Launch Amid Mounting Speculation
Cohen Refutes Token Rumors as Contradictory Reports Surface
Alon Cohen, co-founder of Solana-based memecoin platform Pump.fun, dismissed rumors of an upcoming token launch, stating on February 9, 2025, that no such plans were in motion. Addressing speculation circulating online, Cohen took to X (formerly Twitter) to clarify, “Seeing rumors about a potential Pump.fun token – these are wrong.”
He urged users to rely exclusively on official communications from the platform rather than unverified sources. According to Cohen, the company’s primary focus over the past year has been on enhancing its platform and rewarding its user base, not on launching a native token or preparing for an initial public offering (IPO).
Despite Cohen’s firm denial, reports from Wu Blockchain challenged his statement, asserting that Pump.fun was actively working on a token launch through a Dutch auction model in collaboration with centralized exchanges (CEXs). The publication cited insider sources and internal documents as evidence, claiming that multiple exchange representatives had confirmed the existence of a token launch plan.
Wu Blockchain went as far as publicly calling out Cohen, writing, “It is almost a public fact that Pump.fun plans to issue a token using the Dutch auction inside the CEXs, please don’t lie.” The conflicting narratives have fueled market speculation, leaving investors questioning the credibility of either side.
The controversy comes at a time when Pump.fun faces ongoing legal scrutiny. In January 2025, cryptocurrency law firm Burwick Law filed a lawsuit against the platform on behalf of investors who allege financial losses from its meme coin trading activities. Plaintiffs accuse Pump.fun of facilitating rug pulls and engaging in deceptive practices that led to unfulfilled commitments.
Burwick Law, which has been working closely with affected investors, claims the case is built on months of evidence collection within the crypto space. Additionally, the firm issued a cease-and-desist demand, calling for Pump.fun to remove over 200 memecoins allegedly infringing on intellectual property (IP) rights.
Cohen has remained vocal about his views on altcoins and memecoins, arguing that most tech-driven altcoins offer no real advantage over memecoins while burdened by drawbacks such as low float, high fully diluted valuations, and venture capitalist dominance. Responding to allegations that Pump.fun disrupted the altcoin price cycle, he pointed to market conditions preceding the downturn, stating that the platform had existed months before the altcoin market’s collapse in April 2024.
He suggested retail traders had grown disillusioned, remarking, “Retail was burned too hard last cycle to just come back to invest in the 'future of finance.'” His stance underscores a broader sentiment that retail investors prioritize entertainment and profitability over complex financial technology.
Launched in January 2024, Pump.fun gained traction amid a surge in memecoin activity fueled by online communities across X, Reddit, Telegram, and Discord. The broader altcoin market, as measured by the Total3 indicator on TradingView, peaked at $788 billion in March 2024 before a sharp decline the following month. Market conditions remained stagnant until November 2024, when a historic crypto rally was triggered by the re-election of Donald Trump.
Analysts attribute the prolonged altcoin slump to market oversaturation, where an abundance of new projects competed for limited capital and user attention. However, institutional backing proved crucial, with projects supported by major investors consistently outperforming their counterparts throughout 2024.
This article has been refined and enhanced by ChatGPT.
