January 27 News, the PUMP token price surged approximately 25% in the past 24 hours. This movement occurred at a sensitive juncture when Pump.fun and the Solana Foundation faced simultaneous class-action lawsuits, quickly attracting significant attention from the crypto market. The lawsuits allege insider trading and opaque token issuance arrangements involving both parties, putting the entire Solana meme coin ecosystem under dual pressure of compliance and trust.
Pump.fun is one of the most influential meme coin issuance platforms within the Solana ecosystem. On-chain data shows that since its launch in early 2024, the platform has facilitated the creation of millions of tokens and has long been among the highest revenue-generating applications on Solana. However, with rising negative public opinion and regulatory risks, the number of new tokens issued by the platform has recently declined significantly, and on-chain activity has shown signs of cooling.
In 2025, research firm Solidus Labs released a risk assessment report on Solana, pointing out that a large number of tokens and related liquidity pools on Pump.fun exhibit a clear pump-and-dump structure, estimating that investors have suffered losses amounting to billions of dollars. This report has become a key basis for the current class-action lawsuits and has also subjected Pump.fun’s business model to unprecedented scrutiny.
Affected by the news, Solana’s price retreated from previous highs and hovered near critical technical levels. However, multiple on-chain data platforms indicate that Solana’s developer activity, transaction count, and wallet participation remain higher than most Layer-1 networks, suggesting that the network’s fundamentals have not deteriorated in tandem, with market sentiment being the dominant factor.
Contrasting with Solana’s weakness, the PUMP token price has moved upward against the trend. Data shows that recent token buyback programs launched by the platform have significantly reduced market circulation, becoming an important factor supporting the price and sparking market speculation about potential incentives and distribution mechanism adjustments.
Analysts point out that the future valuation of PUMP still depends on whether Pump.fun can push forward structural reforms, including profit-sharing, increased transparency in issuance mechanisms, and improved risk control systems. In an environment where legal uncertainties and on-chain capital games intertwine, the price trends of PUMP and Solana are showing a rare divergence.
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