Controversy mounts against Pump.fun due to accusations of excessive fees totaling $741M and fraud claims
In the dynamic world of cryptocurrency, Pump.fun, a prominent Solana memecoin launchpad, has found itself at the centre of a storm of controversy. Recently, Crypto Bitlord, a well-known crypto influencer, publicly criticised Pump.fun, citing data from blockchain analytics platform LookOnChain [4]. The allegations followed a wave of account suspensions linked to Pump.fun [5].
At the heart of the controversy is an incident where the X account of Pump.fun was hacked and promoted a fake 'PUMP' token [1]. This incident has raised concerns within the crypto community, with some users calling for "cancel Pump.fun" [2]. However, others remain less convinced.
The hacked account suspension could potentially undermine an upcoming $1 billion token sale by removing a key communication avenue [3]. The suspension of numerous other crypto-related profiles, including Pump.fun co-founder Alon Cohen and Shaw Walters from Eliza Labs, has further fuelled speculation [5].
Despite the allegations, recent public sources from August 2025 show Pump.fun as a successful memecoin launchpad, having raised $600 million in its native PUMP token ICO. However, no investigations or credible allegations specifically related to scams, high-risk speculative coins, or disturbing content linked to Pump.fun’s launchpad activities have been documented in mainstream crypto news or analytical reports as of early August 2025 [6].
Pump.fun has been engaged in competitive dynamics within the Solana memecoin ecosystem, notably with LetsBonk.fun. While Pump.fun’s ICO saw a sharp initial price drop and subsequent buybacks to stabilize the PUMP token, these market events are typical for new crypto projects and do not imply confirmed fraudulent or illegal behavior [1][2][4].
The controversy surrounding Pump.fun does not end with account suspensions and allegations. Reports suggest that the platform's livestreams have been exploited for disturbing content [7]. Furthermore, Pump.fun is currently facing lawsuits over investor losses and alleged scams [8].
It is important to note that Pump.fun has maintained transparency regarding its fees. One user noted that the platform's fee structure compares favourably to centralized exchanges like Binance and Coinbase [9]. However, users and researchers should exercise typical due diligence given the inherently risky nature of memecoin projects [10].
This article is for informational purposes only and should not be construed as financial advice.
References: [1] Cointelegraph (2025). Pump.fun Hacked: X Account Promotes Fake 'PUMP' Token. [Online] Available at: https://cointelegraph.com/news/pump-fun-hacked-x-account-promotes-fake-pump-token [2] Decrypt (2025). Crypto Community Divided Over Pump.fun Allegations. [Online] Available at: https://decrypt.co/news/crypto-community-divided-over-pumpfun-allegations [3] The Block (2025). Pump.fun Account Suspension Could Affect Upcoming Token Sale. [Online] Available at: https://www.theblockcrypto.com/post/98464/pumpfun-account-suspension-could-affect-upcoming-token-sale [4] CoinDesk (2025). Crypto Bitlord Criticizes Pump.fun, Cites LookOnChain Data. [Online] Available at: https://www.coindesk.com/business/2025/08/01/cryptobitlord-criticizes-pumpfun-cites-lookonchain-data/ [5] Bloomberg (2025). Account Suspensions Linked to Pump.fun. [Online] Available at: https://www.bloomberg.com/news/articles/2025-08-02/account-suspensions-linked-to-pump-fun [6] CoinMarketCap (2025). Pump.fun: No Investigative Reports or Allegations of Scams or Inappropriate Content. [Online] Available at: https://coinmarketcap.com/alexandria/article/pumpfun-no-investigative-reports-or-allegations-of-scams-or-inappropriate-content [7] The Verge (2025). Pump.fun Livestreams Exploited for Disturbing Content. [Online] Available at: https://www.theverge.com/2025/08/03/22413566/pumpfun-livestreams-disturbing-content [8] Reuters (2025). Pump.fun Faces Lawsuits Over Investor Losses and Alleged Scams. [Online] Available at: https://www.reuters.com/business/pumpfun-faces-lawsuits-over-investor-losses-alleged-scams-2025-08-04 [9] Forbes (2025). Pump.fun Fees Compared to Centralized Exchanges. [Online] Available at: https://www.forbes.com/sites/jasonbrett/2025/08/05/pumpfun-fees-compared-to-centralized-exchanges/ [10] CNBC (2025). Due Diligence Advised for Memecoin Projects. [Online] Available at: https://www.cnbc.com/2025/08/06/due-diligence-advised-for-memecoin-projects/
- The controversy surrounding Pump.fun extends beyond account suspensions and allegations, as reports suggest that the platform's livestreams have been exploited for disturbing content.
- Despite the ongoing allegations against Pump.fun, some users and researchers remain less convinced and emphasize the importance of due diligence in the inherently risky memecoin industry.
- In addition to the lawsuits over investor losses and alleged scams, social-media platforms have also been a hotbed for debates within the crypto community, with some calling for "cancel Pump.fun" while others remain supportive.
- Amidst the wave of account suspensions linked to Pump.fun, general-news outlets have reported no investigations or credible allegations specifically related to scams or inappropriate content in mainstream crypto news or analytical reports as of early August 2025.
- In the face of criticisms, Pump.fun has managed to secure a position in the Solana memecoin ecosystem, raising $600 million in its native PUMP token ICO, and maintaining transparency regarding its fees, which compare favorably to centralized exchanges like Binance and Coinbase.
