Two law firms, Burwick Law and Wolf Popper LLP, have sent a cease-and-desist letter to Solana-based token launchpad Pump.fun, alleging it used their intellectual property in the creation and promotion of the controversial meme coin, Dog Shit Going Nowhere (DOGSHIT2). The firms also accused Pump.fun of trying to intimidate their clients.

The allegations come as both firms pursue a class-action lawsuit against Pump.fun, claiming the platform has facilitated widespread securities fraud. They also called out the launchpad for allowing users to create and trade unregistered tokens easily.

DOGSHIT2 Soars Amid Pump.fun’s Legal Woes

On Thursday, the cease-and-desist letter, dated February 5, 2025, was shared on X (Twitter). Burwick Law and Wolf Popper LLP demanded that Pump.fun immediately remove DOGSHIT2 and other tokens allegedly impersonating the firms and their employees.

“…any further unauthorized use of our firms’ names, intellectual property, or association with this token may result in immediate legal action,” the post read.

The controversy surrounding DOGSHIT2 began when Burwick Law submitted court documents in its initial lawsuit against Pump.fun. It included an exhibit demonstrating how easily users could create tokens on the platform. The firm also accused Pump.fun of enabling rug pulls and failed meme coins.

However, crypto analysts quickly noticed that a wallet address referenced in the lawsuit was linked to DOGSHIT2. This revelation led to speculation that Burwick Law or its affiliates had inadvertently created the token.

The law firm has vehemently denied any involvement in launching or profiting from DOGSHIT2. Specifically, they said the token only existed as “memory on the server” until it was purchased and deployed on-chain by an unknown party.

Despite Burwick’s denials, DOGSHIT2 has continued to attract investor interest. At its peak on January 31, the token’s market capitalization exceeded $23 million. While it has dropped to around $8.2 million, according to CoinGecko data, the price has increased by over 200% since Thursday’s session opened.

Pump.fun Platform’s Role in the Dispute

Meanwhile, the main issue in the legal battle is whether Pump.fun knowingly allowed the creation of tokens designed to impersonate law firms and plaintiffs involved in the lawsuit. The law firms assert that Pump.fun has the technical ability to remove the disputed tokens but has refused to do so.

“Burwick Law confirmed that Pump.fun has the technical capability to remove these tokens and has chosen not to act, despite the clear financial and legal risks posed to the public,” the law firm added.

They further claim that Pump.fun’s actions represent an effort to interfere with ongoing litigation, intimidating investors pursuing claims against it. The firms warn that such tactics could undermine the legitimacy of blockchain technology by using it to obstruct due process and manipulate public perception.

Pump.fun has not publicly commented on the allegations of intimidation. However, the launchpad advertises as merely providing an open platform for token generation.

Meanwhile, regulatory scrutiny over meme coin platforms has increased, particularly as high-risk, pump-and-dump schemes proliferate. However, for Pump.fun, this adds to a list of controversies after analysts slammed it for delaying the altcoin season. Most Solana founders also have negative sentiments about the platform.

Nevertheless, it is impossible to forget the Solana meme coin launchpad’s remarkable start to the year. As BeInCrypto reported, the platform recorded a notable $14 million in daily revenue on January 2 and accounted for 52.8% of Solana DEX transactions in December.

Bitcoin is showing signs of a potential recovery, emerging from a validated bullish pattern. The crypto has managed to regain momentum, with whale investors playing a crucial role in its price surge. 

As larger holders accumulate more BTC, Bitcoin is inching closer to critical resistance levels.

Bitcoin Investors Are Uncertain

Whale holders have been actively accumulating Bitcoin during the recent mid-sized drop and volatile market conditions. Unlike smaller retail traders, who have been liquidating their holdings, large investors are taking advantage of the price swings to expand their portfolios. This trend highlights a growing divide between seasoned investors and newcomers.

February data reveals a notable shift in wallet distribution. The number of wallets holding 100+ BTC has grown by 135, while smaller wallets holding less than 100 BTC have declined by 138,680. This shift indicates that whale investors are reinforcing their positions while smaller traders exit the market.

Analyzing Bitcoin’s macro momentum, the Cost Basis Distribution shows that a key support range lies between $97,500 and $99,999. Last month’s data confirms that nearly 200,000 BTC were accumulated at these levels, reinforcing price stability.

Additionally, investors with a cost basis above $99,000 have acquired over 150,000 BTC. This accumulation further strengthens the crucial range between $97,500 and $99,999, serving as a foundation for Bitcoin’s next potential move upwards.

BTC Price Prediction: Recovering for Breakout

Bitcoin’s price is on track to validate an ascending wedge pattern once it reaches $106,100, requiring a 7% increase. However, for this to happen, investors must resist the urge to sell prematurely and maintain upward momentum.

Given the accumulation trends and whale activity, Bitcoin could first retest the $100,000 resistance. If this level is successfully breached, BTC is likely to continue its uptrend, break out of the ascending wedge, and surge toward $106,100 and beyond.

On the downside, failure to break $100,000 could lead to a decline, with Bitcoin potentially dropping to $95,668 or lower. This scenario would invalidate the bullish thesis and extend market losses, disrupting the current recovery trend.