Max Burwick refers to Pump.fun as the advancement of Multi-Level Marketing (MLM) frauds, alleging it takes advantage of investors. His legal team is currently working on a lawsuit against this platform.
On January 15th, Max Burwick, founder and partner at Burwick Law, publicly expressed vigorous criticism towards platforms such as Pump.fun, likening them to the pinnacle of multi-level marketing schemes that exploit human vulnerability and the digital market for attention.
The Deception of Cryptocurrency vs. the Posed Pioneer in Crypto: Unveiling the Sham Behind Memecoin Hype as Merely a Facade of Progress
In this rephrased version, we aim to maintain the original’s essence while making it more accessible and engaging for readers:
Memecoins, such as those found on platforms like , embody the pinnacle of pyramid scheme-style marketing tactics, exploiting human…
This revised title and sentence retain the core idea that memecoins are deceptive and predatory but also highlight their similarities to multi-level marketing scams. The revised version is more engaging by using “pinnacle,” “pyramid scheme-style,” “exploiting human tendencies” and “facade of progress.
— Max Burwick (@burwick_max) January 15, 2025
He pointed out that these ventures exploit the “digital market of attention” to attract people, particularly young individuals and those struggling economically, and trap them within a cycle meant to benefit early investors financially.
According to Burwick’s claim, Pump.fun portrays “exit liquidity” as a playful activity, which seems to downplay the significant financial losses experienced by those who join later in this market.
On the Solana blockchain, Pump.fun functions as a user-friendly, decentralized hub for fashioning and dealing meme tokens. Its primary goal is to facilitate easier involvement in the cryptocurrency market for those without technical expertise.
In simpler terms, Burwick didn’t mince words when criticizing these platforms, stating they are essentially opposite to the advancements in blockchain technology. He believes that platforms such as Pump.fun don’t align with the core values of openness, justice, and user control which were the foundations on which cryptocurrency was established.
Burwick emphasized once more that meme coins don’t hold inherent innovation, rather they capitalize on addictions and attract younger audiences. These remarks were made as Burwick Law takes a firm stance in a legal battle against Pump.fun, calling for responsible behavior within the cryptocurrency sector.
Pump.fun faces legal action
On January 15th, Burwick Law announced that they have been assisting people who suffered substantial financial losses due to meme coins being pulled out from under them through deceptive tactics and misleading guarantees associated with the platform. The law firm has since created a website aimed at supporting clients who lost millions of dollars in this unfortunate event.
Attention Investors: *Lawsuit Notice: Pumpdotfun*
Burwick Law is initiating a lawsuit for investors who have suffered losses from investing in Pumpdotfun memecoins. If you’ve experienced financial loss with any Pumpdotfun memecoins, you might be eligible for restitution.
For further details, please continue reading below.
— Burwick Law (@BurwickLaw) January 15, 2025
According to Burwick Law, Pump.fun allegedly published offensive and destructive content containing violence, racism, and anti-social activities. They criticized the unidentified developers of the site and similar meme coin communities for deceiving everyday investors with misleading guarantees.
By January 15th, the cumulative income of the platform had exceeded $422 million, and an impressive $25 million was earned just over the past week, as per data from Dune Analytics.
Burwick Law argues that meme coin launchpads provide minimal assistance to users and primarily serve as platforms for a harmful practice known as rug pulls. In this scenario, creators exit with the invested funds after securing capital. According to Burwick, early investors cash out by selling their holdings to later participants, essentially defrauding them by draining funds from the system.
In November 2024, Pump.fun encountered significant criticism due to its live streaming service. During a live stream, a user created a disturbing situation by threatening self-harm in an attempt to publicize their meme coin, sending shockwaves throughout the cryptocurrency community. Although Pump.fun admitted to the harm caused and adjusted its moderation practices, there were no discussions about the financial losses that investors may have experienced.
Based on a study by Pump.fun’s wallet analyst Adam Tehc, it was found that just 0.4% of the 14 million wallets dealing with Pump.fun managed to earn profits over $10,000, indicating that a majority of users have experienced losses instead.
It’s not just Max Burwick who is critical of the platform; on January 15th, Cosmo Jiang from Pantera Capital expressed a similar viewpoint to Wire, stating that most meme coins launched through Pump.fun end up being almost worthless.
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2025-01-16 17:32