5 Key Reasons Why Pump.fun and Solana Meme Coins Seem Too Risky Now

Pump.fun is back in headlines — this time not for a new meme token launch, but because of yet another controversy. The platform is under fire again after its X (Twitter) account was suspended, along with the Pump.fun founder, Alon Cohen pumpfun. This abrupt stop has created panic among users and have generated queries: Is Pump.fun a scam or legit?

Source: X

5 Reasons Solana-Based Pump.fun Meme Coins Appear to Be Risky

Dylan Kerler's Involvement with 2017 ICO Scams : One of Pumpfun's co-founders, Dylan Kerler, has a history of working with many scam tokens, as per Protos report. A thorough investigation was able to find that previously in 2017, he created tokens such as eBitcoinCash and EthereumCash, claimed to have scammed users out of $75,000's worth of ETH (that today is over $400,000).

Source: X

They were pushed on BitcoinTalk and are some of the oldest examples of rugpulls. This puts a massive shadow on the credibility of the platform.

Livestreaming Offenses and Objectionable Materials: In November 2024, the platform was compelled to close down its livestream after egregious abuses were found. Its users tried selling their tokens by breaching all standards of decency—uploading objectionable and offensive content, suicide threats, animal cruelty, and adult content. This event led to public backlash, but no real consequences for the developers.

Violations of U.S. Securities Laws : A lawsuit was filed against Pump.fun in January 2025, accusing it of breaking U.S. securities laws. Filed in a New York federal court, it claims that tokens like FWOG, FRED, and GRIFFAIN were promoted like unregistered securities. The case alleges that the team, including the platform’s operator Baton Corporation, used fake hype and liquidity tricks to mislead investors. The whole thing is described as being similar to a Ponzi or pump-and-dump scheme.

Meme Coin Scams Like Libra Coin and CAR Coin: Multiple tokens launched on Pump.fun have turned out to be scams. The biggest example is the libra coin scandal . Launched on February 15 at $0.8734, the coin was rumored to have ties with Argentine President Javier Milei. But it soon collapsed to just $0.02247. Another example is the CAR coin scam, which also followed a similar pattern of hype and crash. These incidents make investors think twice about trusting solaba based meme coin launches on this platform.

X Account Suspensions and Growing Mistrust: The suspension of the Pump fun founder Twitter account and the main X account hack has added more doubt. Other similar trading bots like BullX, Bloom, and Nova also got suspended.

Source: X

It looks like X is cracking down hard on risky crypto tools, especially those tied to memecoin trading. This crackdown is only increasing worries among traders and developers.

Is It Safe to Invest in Solana-Based Meme Coins Now?

Because of these repeated issues, many traders are now worried about the overall safety of Solana-based meme coins. Recent market activity supports this fear. The solana price crash today shows a 2.57% drop, with Solana now trading at $152.80. The total solana-based memecoin market is also down by 1%, valued at $10.4 billion.

Source: CoinMarketCap

Popular tokens are falling fast:

• Bonk price today dropped by 6%

• Fartcoin price fell over 9%

• Trump token went down 4%

All this shows that the impact of Pumpfun news isn’t limited to one platform — it’s shaking confidence in the broader memecoin market.

Conclusion

The latest happenings, such as lawsuits, scams, and Solana pump fun news Twitter bans, outrightly show a trend of issues pertaining to Pump.fun. Whether its background of team members, dubious coin releases like libra coin scandal and CAR crypto scam, or recent social media take-downs—there are more than enough reasons to sit on the fence before diving in.

Disclaimer: This is an information article only. It is not an investment advice article. Always do your own research before making a financial decision.