PUMP, the native token of meme coin launchpad Pump.fun, fell sharply on Thursday, July 24 after its founder said an airdrop was not coming soon and legal challenges intensified.
Summary
- PUMP has dropped 52% since its July 16 peak amid fading airdrop hype.
- Founder confirms the airdrop is still planned, but not happening soon.
- Legal complaints now target Solana and Jito leadership under U.S. RICO law.
The token declined 17% from a local high of $0.00369 to a low of $0.00305 within 24 hours. As of press time, it had slightly recovered to $0.003243, still down 11% on the day and over 40% for the week.
The decline follows a steady selloff since Pump.fun’s (PUMP) launch earlier this month. The token, which debuted at $0.004 during its presale, briefly rallied to an all-time high of $0.0068 on July 16 before losing momentum. It is now trading more than 52% below that peak.
Airdrop expectations walked back
The token’s decline deepened after Pump.fun co-founder Alon Cohen said that while an airdrop is still planned, it won’t arrive anytime soon. Speaking in a July 23 interview with Michael “ThreadGuy” Jerome, Cohen said the team aims to deliver a meaningful airdrop but will prioritize execution and ecosystem growth over rushing the timeline.
“We’re going to keep our word… but the airdrop is not going to take place in the immediate future,” Cohen said. The comments came a day after the token slipped below its initial coin offering price of $0.004, prompting further sell pressure from traders expecting near-term distribution.
Legal action widens to Solana and Jito
Meanwhile, legal pressure is mounting. On July 23, Burwick Law and Wolf Popper filed an expanded lawsuit against Pump.fun, adding the Solana Foundation, Solana Labs, and members of the Jito team.
The amended complaint accuses them of participating in a scheme that may have violated U.S. financial laws, including the Racketeer Influenced and Corrupt Organizations Act, and various securities and anti-money laundering rules.
Co-founders of Solana Anatoly Yakovenko and Raj Gokal, executives of the Solana Foundation, and the management of Jito Labs are among the defendants. According to the plaintiffs, these parties actively participated in the design of the token and fee structure for the Pump.fun ecosystem rather than just being spectators.
The complaint claims that Pump.fun, operated by the UK-based Baton Corporation, lacks proper user verification, fails to monitor for suspicious activity, and exposes users to financial crime risks. The Solana Foundation and Jito Labs have not responded publicly.
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