Max Borwick has called Pump.fun “the evolution of MLM scams,” accusing it of exploiting investors, and now his law firm is preparing to file a lawsuit.
On January 15, Max Burwick — founder and partner at Burwick Law — railed against platforms like Pump.fun as examples of what he calls “the ultimate evolution of multi-level marketing scams, which exploit human desperation and the digital attention economy.” ".
He criticized that these projects take advantage of the "digital attention economy" to attract people - especially younger audiences or those facing economic hardship - and trap them in a cycle designed to enrich early insiders.
According to Borwick, Pump.fun allegedly portrays “exit liquidity” as a game, highlighting the very real financial losses to late subscribers.
Pump.fun is a decentralized platform on Solana (Sol) Blockchain technology simplifies the process of creating and trading coins, with the aim of making participation in the cryptocurrency market accessible to non-technical users.
Borwick didn't hesitate to take shots at the platform, saying it was the antithesis of blockchain innovation. He says platforms like Pump.fun don't embody the basic principles of transparency, fairness and empowerment that cryptocurrencies were originally built on.
Borwick reiterated that meme coins are not innovative in themselves but prey on addiction and youth. His comments come as Burwick Law faces the challenge in a legal case involving Pump.fun, which calls for accountability in the company's behavior within the cryptocurrency ecosystem.
Pump.fun is facing legal action
On January 15, Burwick Law said it was working with individuals who have lost large sums of money to memecoins through rug sweeps and misleading promises associated with the platform. The law firm has now done the work Website To help clients who lost millions of dollars in a fiasco.
Burwick Law claimed that Pump.fun Hosted Obscene and destructive content displaying violence, racism and anti-social behaviour. They attacked the anonymous creators of the platform and others in the meme currency ecosystem for luring investors daily with false promises.
As of January 15, the platform's total revenue Transgression $422 million, with nearly $25 million made in the past seven days alone, according to Dune Analytics.
Burwick Law contends that the meme launcher offers little actual support to its users, and instead facilitates rug pulling, where developers walk away with investors' money after raising capital. “As the system grows, early adopters profit by offloading their holdings to later participants, effectively ripping them off,” Borwick noted.
In November 2024, the platform experienced significant backlash over its live streaming feature. One user threatened to harm himself to promote his meme during a live stream, causing panic across the entire cryptocurrency community. While Pump.fun did He approves With the damage done and the change in moderation policies, there was no talk of losses incurred by investors.
According to analysis By Adam Tiehke, Pump.fun Wallet Tester Only 0.4% of the 14 million wallets interacting with Pump.fun reported profits exceeding $10,000 – highlighting how vulnerable most users are to losses.
Max Borwick isn't the only one with a strong anti-podium stance. On January 15, Cosmo Jiang of Pantera Capital said Wire “The majority of meme coins released through Pump.fun end up being almost worthless,” shares a similar sentiment to Borwick.
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