Pump.fun, a decentralized platform on the Solana blockchain, faces criticism from Max Burwick, founder of Burwick Law, who claims it exploits investors and represents a new form of multi-level marketing scam.
He plans to file a lawsuit against the platform, highlighting substantial investor losses and unethical practices.
The Promise of Crypto v. Crypto’s Great Pretender: How the Memecoin Narrative is nothing more than the Illusion of Innovation
Memecoins, exemplified by platforms like https://t.co/ZKCPteQcP4, represent the ultimate evolution of multi-level marketing scams, preying on human…
— Max Burwick (@burwick_max) January 15, 2025
Burwick criticized platforms like Pump.fun for exploiting vulnerable users, especially younger individuals and those in financial trouble. He argued that these platforms take advantage of the attention economy, trapping users in a cycle that primarily benefits early insiders. Burwick condemned the way the platform downplays financial losses, presenting exit liquidity as if it were just a game while enriching a small group at the cost of the wider community.
Pump.fun simplifies creating and trading meme coins, aiming to make the crypto market accessible to non-technical users. However, Burwick claims the platform undermines blockchain’s core principles of transparency, fairness, and empowerment. He argued that the rise of meme coins facilitated by Pump.fun preys on addiction and impulsivity, particularly among younger users, rather than delivering genuine innovation.
Burwick Law’s legal action follows reports of significant financial losses tied to Pump.fun. The firm has created a dedicated website to assist individuals who lost millions to alleged rug pulls and misleading promises. Burwick further accused the platform of hosting inappropriate content, including violent and antisocial material, and criticized its anonymous creators for luring investors with false hope.
Burwick isn’t the only voice criticizing Pump.fun. Cosmo Jiang of Pantera Capital expressed similar concerns on the same day, stating that most meme coins launched through the platform were worthless.
Pump.fun has faced backlash before. In November 2024, the platform came under fire after a user threatened self-harm during a live-streamed promotion for a meme coin, sparking panic across the crypto community. Although Pump.fun later updated its moderation policies, it made no efforts to address the financial losses experienced by investors.
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