New York based law firm burwickannounced that it is preparing to take legal action against Solana-based memecoin mining platform Pump.fun. The company announced that it took action on behalf of users who incurred losses while investing on the platform. In a statement on Wednesday, it was stated that the firm stands with victims struggling with “scams, memecoin traps and unfulfilled promises.”
Striking Claims Against Pump.fun
burwick, pump.funHe claimed that .com earned hundreds of millions of dollars in commission income, but that illegal content encountered by users on the platform was turned a blind eye. According to the statement, the platform included behaviors that disturb society, such as drug use, self-harm, racism and antisemitism.
Pump.fun indefinitely shut down its live streaming feature following reports of such abuse in November. However, according to the company’s statement, hiding the identity of the platform’s founder deepens the problems regarding accountability. Burwick noted that the lack of transparency due to anonymity erodes trust.
“Such platforms cryptocurrency market“It exploits investors by hiding behind the terms circulating on the Internet,” said the company, and shared a link for users victimized by Pump.fun to join the lawsuit.
Investor vs Gambler
Burwick’s statement caused controversy in the cryptocurrency world. Well-known Blockchain researcher ZachXBTHe claimed that those who invest in memecoin projects are actually gamblers, not investors. According to ZachXBT, micro-scale memecoin investments carry great risk and are usually the result of a conscious choice.
co-founder of Burwick Max Burwickresponded to these criticisms. He compared the Memecoin scam to a casino, saying the distribution of playing cards could be manipulated. “Memecoins are not gambling in the traditional sense,” Burwick said. “As speculative assets, they can be easily manipulated,” he said.
DefiLlama According to data, Pump.fun generated $93.8 million in revenue in November. The platform earned $80.3 million in December. These figures predict the future of memecoins in 2024. cryptocurrency It shows that it has become a permanent trend in the market.
With all this said, Burwick’s lawsuit initiative could be a turning point for investors. This process may have significant impacts on the future of both Pump.fun and the cryptocurrency market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
