Solana-based memecoin launchpad Pump.fun has delayed its public token auction to mid-July from the original June 25 date due to legal uncertainties and social media bans.
The planned raise targeting $1 billion at a $4 billion valuation has been postponed multiple times since planning began in 2024, with the latest delay coinciding with mounting legal challenges.
Pump.fun faces a class action lawsuit alleging securities violations and price manipulation, along with criticism for enabling tokens that infringe on copyrights.
The platform's delays and lack of transparency regarding legal issues are raising concerns among investors, affecting the billion-dollar fundraising goal.
Social media platform X suspended Pump.fun and founder's accounts on June 16, adding to the project's setbacks and raising questions about potential enforcement actions.
The temporary ban disrupted the platform's communication during a crucial period and compounded the existing uncertainty surrounding the public auction.
Crypto journalist Colin Wu reported that Pump.fun's token sale is now expected in mid-July, with no firm date confirmed yet, as the project aims to raise $1 billion at a $4 billion valuation despite ongoing legal and operational challenges.