TLDR
- Pump.fun (PUMP) dropped 25% to new lows after co-founder confirmed the long-awaited airdrop won’t happen soon
- Token fell below $1 billion market cap and its pre-sale price, disappointing early investors
- Legal pressure intensified with an amended class-action lawsuit seeking $5.5 billion in damages
- Community backlash grew as users criticized the team for vague promises and poor communication
- Rival platform Bonk capitalized on the chaos by announcing 1% revenue sharing for meme coins
Pump.fun’s native token PUMP has hit a new all-time low of $0.0028 following a series of damaging developments. The Solana-based memecoin launchpad token dropped 25% in 24 hours and fell below the $1 billion market cap threshold for the first time since launch.
The latest selloff began after co-founder Alon Cohen appeared on a Twitch stream with NotThreadGuy at 4 AM. During the interview, Cohen confirmed that the highly anticipated PUMP airdrop would not happen in the near future. This statement triggered immediate selling pressure from disappointed investors.
The token has now declined 57.9% from its all-time high of $0.0068 reached on July 16. PUMP also fell below its pre-sale price, frustrating early buyers who expected quick gains after the token generation event.
Community Backlash Grows
The crypto community had jokingly called the Twitch stream the “FOMC” of meme coins, expecting major announcements. Instead, Cohen’s vague responses deepened investor frustration. He refused to share details about the airdrop amount, timeline, or how selling pressure would be managed.
Allon talks about potentially acquiring more companies/products like KOLscan,
Potentially hinting to acquiring Launch on Pump pic.twitter.com/eLRVxIJ8Sc
— ً (@0xsyste) July 23, 2025
When asked about buyback programs, Cohen mentioned that $20 million worth of PUMP had been repurchased after launch, plus another $550,000 in recent days. This information failed to calm nervous holders.
Cohen tried to focus on long-term goals including product upgrades, increased liquidity, and creator support. However, many investors viewed these promises as too vague without concrete timelines.
The platform’s attempts to boost ecosystem tokens also backfired. Cohen’s purchases of five meme tokens from Pump.fun performed poorly, with four already showing losses.
Popular streamer Gainzy criticized the team for making loyal users wait while other platforms like Hyperliquid had already distributed large airdrops to early adopters. The criticism highlighted growing concerns that Pump.fun’s team had lost touch with its user base.
Legal Pressure Mounts
Legal troubles have compounded PUMP’s price problems. Burwick Law filed an amended class-action lawsuit in the Southern District of New York on Wednesday. The new complaint targets Pump.fun and several Solana partners including Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation.
The lawsuit alleges that defendants extracted over $5.5 billion from customers through various schemes. It seeks transaction rescission and compensatory damages from the platform.
The original lawsuit filed in January claimed Pump.fun operated as an unregistered securities exchange. The amended version escalates these allegations with broader claims against the Solana ecosystem.
Pump.fun launched in January 2024 as a memecoin deployment platform. The service quickly became the leading memecoin launchpad, deploying nearly 12 million tokens and generating over $775 million in revenue over 18 months.
The platform’s token sale in July raised $600 million in just 12 minutes despite delays. PUMP initially surged 70% from its ICO price before the recent decline began.
Some market watchers remain optimistic about a potential recovery. Analyst Bren Trades compared the situation to previous post-launch selloffs that later reversed. Crypto analyst Altcoin Sherpa suggested PUMP might bottom soon and eventually see a “giga crime pump.”
Rival platform Bonk took advantage of Pump.fun’s troubles by announcing it would dedicate 1% of platform revenue to promote leading meme coins. The timing of this announcement during Pump.fun’s crisis created additional competitive pressure.
As of the latest trading data, PUMP continues to trade at $0.0028, representing a 26.6% daily decline and maintaining pressure near its all-time low levels.
