Pump.fun’s $PUMP token gained 5.5% to $0.003154 as whale activity and buybacks countered a 67% post-launch crash and a billion-dollar lawsuit threat. Behind the price movement, conflicting forces are at work. While venture firms accumulate tokens and derivatives activity grows, the platform battles legal challenges, and rivals are gaining market share. Source: CoinGecko Pump.fun Faces Legal Heat and Competition But Indicates Recovery as Ecosystem Evolves Launched through an Initial Coin Offering (ICO) on July 12, 2025, Pump.fun sold 15% of its total 1 trillion token supply , amounting to 150 billion PUMP tokens. The token sale drew considerable attention and indicated the platform’s ambition to be more than just a memecoin incubator. Shortly after its debut, $PUMP plummeted 67% from its peak. This decline has put pressure on the platform to innovate and reinforce its value proposition to the market. To restore confidence, the project initiated its buyback program, where it repurchased $31.3 million worth of $PUMP tokens funded by 25% of the protocol revenue. Pump.fun also acquired Kolscan, a leading on-chain wallet tracking tool, to improve transparency and attract serious meme investors. we’re excited to announce that pump fun has acquired @kolscan Kolscan is a wallet tracker that monitors the activities of top onchain traders. it provides realtime transactions, token PnL, and a leaderboard ranking their performance our integration will not only enable better… pic.twitter.com/V4VDcOwVeG — pump.fun (@pumpdotfun) July 10, 2025 Yet, just as the project sought stability, a class-action lawsuit was filed by Burwick Law, claiming Pump.fun operates like an “illegal casino” that encourages speculative memecoin gambling. The lawsuit seeks $5.5 billion in damages, a massive legal challenge that could impact the platform’s long-term regulatory standing and public perception. Pumpdotfun Litigation Update Burwick Law, on behalf of plaintiffs, filed a new complaint in federal court in the Southern District of New York alleging RICO claims against Anatoly Yakavenko, Raj Gokal, Dan Albert, Lily Liu, Austin Federa, Solana Labs, Solana Foundation, Alon… — Burwick Law (@BurwickLaw) July 23, 2025 Despite the setbacks, Pump.fun is fighting back. The asset saw an 11% growth in price on the back of bullish fundamentals and aggressive whale accumulation. According to on-chain activity, venture firm GSR purchased $4.6 million worth of PUMP from exchanges, indicating institutional interest. At the same time, open interest in PUMP derivatives rose 6%, hitting $743 million, while the funding rate flipped positive. But competition is heating up in the meme launchpad space. Rivals like LetsBonk.fun are gaining ground rapidly, forcing Pump.fun to double up on its buyback strategy, acquisitions, and product rollout. $PUMP Pulls Back After Hitting Measured Target With Triple Bottom Breakout Earlier today, $PUMP/USDT pulled back from its intraday high near $0.00338 after a clean breakout from a well-formed triple bottom pattern on the 1H chart. The pattern had formed starting from late July into early August, with well defined reaction lows and an ascending neckline. After the third bottom near $0.00260, we saw $PUMP break out with strength, tapping the projected upside target around $0.00336 before losing steam. $PUMP/USDT price chart, August 5 (Source: TradingView) The traded volume increased steadily during the breakout leg, confirming participation behind the move. However, the latest session reveals a shift. Volume footprint data shows that although total volume remained high across most of the session, particularly between 08:00 and 10:00 UTC, where 16.65B were traded, the delta has turned less favorable. In addition, a large red delta candle printed after the high, with over -53.4M delta on 7.84B total volume. That shift reflects aggressive selling into local strength. Earlier in the move, between 06:00 and 09:00 UTC, the delta skewed heavily bullish, with back-to-back prints over +1.19B, +1.35B, and +1.31B. These coincided with the main thrust out of the base. But since tapping the projected target, price action has flattened, and the most recent deltas show mild selling with less follow-through from buyers. Right now, $PUMP is holding above $0.00304, which is a good enough short-term level to watch. If that gives way, the next support sits around $0.00295. On the upside, reclaiming $0.00320 with strong volume could put bulls back in control. But for now, this looks like a classic case of a pattern that hit its target and is taking a moment to reset. The post Pump.fun ($PUMP) Rebounds 5.5% to $0.003154. Can It Push Further? appeared first on Cryptonews .
