The planned raise, originally targeting $1 billion at a $4 billion valuation, has been pushed to mid-July. Social media platform X suspended Pump.fun and the founder’s accounts on 16 June. The auction was initially scheduled for 25 June with a $4 billion valuation.

Solana-based memecoin launchpad Pump.fun has delayed its public token auction once again, amid rising legal uncertainty and platform moderation concerns.

The planned raise, originally targeting $1 billion at a $4 billion valuation, has reportedly been pushed to mid-July.

This marks the latest in a series of postponements that have disrupted the platform’s roadmap since planning for the launch began in 2024.

Pump.fun had initially announced a June 25 auction date, but the latest delay follows a pattern of mounting challenges.

While no official reason was cited for this week’s postponement, the timing aligns closely with growing legal pressure in several jurisdictions, including an active class action lawsuit in the US and warnings of intellectual property violations.

Social media suspensions have added to the disruption, casting uncertainty over the project’s near-term prospects.

At the heart of Pump.fun’s troubles is a class action suit filed by Burwick Law on 15 January.

The legal complaint accuses the platform of securities law violations and manipulating token prices for its own gain.

According to the filing, investors suffered significant losses due to what the plaintiffs describe as artificially inflated valuations designed to benefit the launchpad’s internal operations.

The platform, which allows users to mint and promote memecoins on Solana, is also under fire for enabling projects that allegedly misuse copyrighted names and branding.

In February, Burwick Law joined hands with Wolf Popper LLP to issue a cease-and-desist letter targeting Pump.fun.

The letter highlights repeated IP infringements by user-created tokens, which often borrow logos and branding from existing companies and public figures.

Although Pump.fun has not responded to the lawsuit publicly, the legal cloud is raising questions over its planned billion-dollar raise.

The repeated delays and lack of transparency have made it difficult for institutional and retail investors to gauge the platform’s legal standing, further complicating the valuation ahead of any token issuance.

On 16 June, social media platform X suspended the official accounts of both Pump.fun and its founder.

Though the ban lasted only a few days before the accounts were reinstated, it fuelled speculation about enforcement actions linked to ongoing legal scrutiny.

Neither Pump.fun nor X disclosed the reason for the takedown.

This isn’t the first time crypto platforms have been hit with such suspensions.

Other decentralised projects and crypto tools have also faced temporary bans in recent months, often without a public explanation.

However, the timing of Pump.fun’s ban — just days before its auction update — has drawn particular attention within the crypto community.

Despite the reinstatement, the suspension disrupted the launchpad’s communications during a critical period.

With the public auction already delayed, the temporary loss of its primary outreach channel may have undermined user trust further.

Crypto journalist Colin Wu, who broke the news on X, stated that the new target date for Pump.fun’s token sale is now set for mid-July.

No firm date has been confirmed by the team.

The project had originally aimed to raise $1 billion from the token event, which would value the platform at $4 billion — a bold figure given the legal risks and operational headwinds it currently faces.

Pump.fun’s rise to prominence was driven by a wave of speculative activity around meme tokens on the Solana blockchain.

However, the combination of litigation, brand misuse allegations, and social media bans could put its long-term viability at risk if not addressed before the token launch.

The post Pump.fun token auction delayed again amid legal pressure, social media ban appeared first on CoinJournal.

114 +