“Burwick Law Founder Unveils Dark Secrets Behind Pump.fun Meme Coins: A Ponzi Scheme Exposé!”

Max Burwick has labeled Pump.fun as “the next iteration of MLM scams,” charging it with exploiting investors—and his legal firm is now gearing up for litigation.

On January 15, Max Burwick—founder and Partner at Burwick Law—expressed fierce disapproval of platforms like Pump.fun, referring to them as embodiments of “the pinnacle evolution of multi-level marketing scams, capitalizing on human desperation and the digital attention economy.”

He criticized these initiatives for exploiting the “digital attention economy” to attract individuals—particularly younger demographics or those in financial distress—and trap them in a loop aimed at filling the pockets of early insiders.

Pump.fun, as per Burwick, supposedly characterizes “exit liquidity” as a game—trivializing the genuine financial harm suffered by later participants.

Pump.fun is a decentralized platform on the Solana (SOL) blockchain that simplifies the creation and exchange of meme coins, striving to render crypto market involvement accessible for non-technical individuals.

Burwick did not hesitate in criticizing the platform, asserting that they stand opposed to the essence of blockchain innovation. He claims platforms like Pump.fun lack the core values of transparency, equity, and empowerment that crypto was intended to uphold.

Burwick emphasized that meme coins lack inherent innovation but exploit addiction and youth. His statements arrive as Burwick Law embarks on a legal action concerning Pump.fun, seeking accountability in its business practices within the cryptocurrency sector.

Pump.fun confronted with litigation

On January 15, Burwick Law disclosed that it has been collaborating with individuals who incurred significant financial losses from meme coins due to rug pulls and deceptive assurances associated with the platform. The law firm has since launched a website to assist clients who lost millions in this debacle.

Burwick Law alleged that Pump.fun hosted inappropriate and toxic material depicting violence, racism, and other antisocial behaviors. They condemned the anonymous developers of the platform and others in the meme coin space for enticing everyday investors with false commitments.

As of January 15, the total revenue of the platform exceeded $422 million, with nearly $25 million accruing in just the last week, according to Dune Analytics.

Burwick Law asserts that the meme coin launchpad provides minimal real support for its users and actually enables rug pulls, where developers abscond with investor funds after securing capital. “As the system expands, early participants cash out by offloading their assets onto later entrants, effectively robbing them,” remarked Burwick.

In November 2024, the platform faced significant backlash over its live streaming functionality. A user threatened self-harm to promote their meme coin during a live broadcast, causing widespread alarm within the crypto community. Although Pump.fun acknowledged the harm done and revised its moderation protocols, there were no discussions about the financial losses investors experienced.

Based on an analysis conducted by Pump.fun wallet evaluator Adam Tehc, merely 0.4% of the 14 million wallets engaging with Pump.fun reported earnings surpassing $10,000—underscoring how most users have incurred losses.

Max Burwick is not the sole individual keenly opposed to the platform. On January 15, Cosmo Jiang of Pantera Capital informed Wire that “the majority of meme coins launched through Pump.fun end up nearly valueless,” echoing a sentiment similar to that of Burwick.