Altcoin
Pump.fun Faces Second Lawsuit As Meme Coin Scrutiny Heats Up
The woes for Pump.fun, the platform that allows the launch of meme coins on Solana, keep piling. A second lawsuit has been filed against the platform, claiming it engages in fraudulent activities and violated US securities laws.
This development joins the list of growing scrutiny against meme coin projects, especially those accused of being pump-and-dump schemes.
New Lawsuit Alleges Securities Violations
The class-action complaint, filed by Burwick Law and Wolf Popper LLP, alleges that Pump.fun has been peddling unregistered securities masquerading as meme coins.
In the complaint, it is alleged that the company misled investors into buying the tokens which had little to no intrinsic value to insiders who profited at their expense. It raises a host of regulatory questions regarding meme coin platforms – whether or not they fall under the jurisdiction of securities laws.
**LAWSUIT ALERT**
Burwick Law and @WolfPopperLLP have filed a second federal class action lawsuit on behalf of investors against the PumpdotFun platform.
Full complaint available below.
— Burwick Law (@BurwickLaw) January 30, 2025
The legal team behind the lawsuit argues that Pump.fun’s operations resemble classic financial fraud tactics. By allowing rapid creation and trading of meme coins, the platform may have facilitated schemes where early investors benefit at the cost of later entrants.
This lawsuit follows a previous legal action that targeted Pump.fun for similar reasons, indicating a pattern of legal challenges for the platform.
Regulators And Experts Weigh In
Legal experts and regulators closely follow the development of the situation, with some using a comparison between the model of the given platform and multi-level marketing scams.
The founder of Burwick Law, Max Burwick, has been vocal concerning the various risks involved in meme coin platforms, stating that they fall within a gray area where upcoming enforcement will be much strict.
With impending legal announcements, I want to make my personal position on the exploitation of memecoins widely available. Read it below. Please feel free to share! pic.twitter.com/adndcQNRxH
— Max Burwick (@burwick_max) January 15, 2025
The crypto market aims to reduce illegal financial activities, so platforms like Pump.fun may face a lot of pressure to follow current laws.
Investor protection groups have also sought clearer rules about meme coins and their status and classification under securities law. If Pump.fun is found guilty of selling unregistered securities, it could set a standard for other crypto sites.
Hype Or Market Manipulation Of Meme Coin?
The lawsuit also points to a more general issue: the debate about meme coins. To some, these are the lighter, fun aspects of the crypto market. However, to others, they create a pathway to mass manipulation in the markets.
Meme coins often see extremely rapid rises and falls, leading to massive losses for late investors, with critics saying that places like Pump.fun live off of artificial hype instead of value.
Featured image from CCN, chart from TradingView
Dogecoin whales again captured noteworthy market attention on Saturday, reflecting a highly bullish sentiment despite broader market volatility. Recent on-chain data revealed that whales accumulated 560 million Dogecoin, signaling a potential rally for DOGE price to $1. Further, in the wake of Grayscale’s new DOGE-backed Trust’s launch, investor sentiments surrounding the meme-themed asset have undergone a paradigm bullish shift.
Dogecoin Whales On Buying Spree Signal Bullish Move Ahead
In an X post by renowned crypto analyst Ali Martinez on February 1, it was spotlighted that Dogecoin whales purchased 560 million tokens in the past week. This massive buying signals heightened market confidence in the asset.
Notably, the analyst reveals that the buying spree follows an intense sell-off recently, thus flagging renewed interest among large-scale investors. As a response, broader market participants anticipate a bullish move ahead, primarily amid rising demand and buying pressure. Further, it’s also worth pointing out that CoinGape previously highlighted rising DOGE whale accumulations.
Grayscale’s New Trust Launch Solidifies Market Optimism
Meanwhile, the launch of Grayscale’s Dogecoin Trust has offered additional market support to the dog-themed meme crypto. The launch of a traditional financial investment product backed by a meme-themed asset paves the way for further money inflow into the crypto’s ecosystem.
Simultaneously, it’s also worth mentioning that asset management company Bitwise submitted S-1 filing for a DOGE ETF previously. Overall, these recent endeavors, pushing the meme coin as a traditional investment product, have cemented investors’ bullish outlook for the token.
Is Dogecoin To $1 Run Inevitable Amid Rising Whale Buying & Market Support?
At the time of reporting, DOGE price continued showcasing a sideways trading session, exchanging hands at $0.3277. The crypto’s 24-hour low and high were $0.3243 and $0.3407, respectively. Amid the abovementioned bullish news surfacing across the market, intraday trading volume for the asset rose by 36% to $1.57 billion.
Market watchers continue to anticipate further gains amid rising Dogecoin whale accumulations and broader developments. A recent Dogecoin price analysis by CoinGape revealed that the new Trust launch and ETF filing further amplify the token’s potential to hit $1. However, it’s worth mentioning that the coin must clear the $0.35 level promptly for further upside actions. The latest macroeconomic events, such as unchanged rates this FOMC and rising PCE inflation YoY, present the crypto market with uncertainty.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
DOT, Polkadot’s native cryptocurrency is up by 6% as asset manager 21Shares filed for a spot Polkadot ETF, the first such filing for this altcoin. As a result, the DOT price has made quick gains shooting to $6.5 as analysts believe that a potential breakout could lead to a new high ahead. Also, the daily trading volume for DOT has surged by 75% to more than $338 million.
DOT Price Shows Bullish Potential Amid Fibonacci Levels
In recent months, the DOT price chart has shown the formation of bullish technical patterns. From August to November 2023, Polkadot formed a descending triangle pattern, which led to a breakout and a strong rally, peaking near $11.00 in December, reported macro analyst FLASH.
Following this peak, a descending wedge pattern emerged, with the current price consolidating at $6.217. also, the key Fibonacci retracement levels for DOT price to watch are 0.618% at $6.772 and 0.786% at $5.434.
Recent price activity indicates a bounce from the lower trend line and the 0.786 Fibonacci level, hinting at a potential bullish reversal. However, confirmation of this trend is awaited. To sustain a bullish trajectory, the DOT price must breach a critical resistance level at $7.545, marked as a horizontal green line on the chart. A breakout above this level could pave the way for a rally toward a projected target of $14,605, as suggested by a bullish green arrow.
Polkadot Positioned for Massive 650% Price Surge?
Polkadot (DOT) may be gearing up for a significant rally, according to market analyst Javon Marks. In a recent statement, Marks highlighted DOT’s multiple breakouts as a sign of strong bullish momentum. If this projection materializes, it would represent a staggering DOT price climb of over 650% from current levels.
“$DOT (Polkadot), by its multiple breakouts, looks to still be well positioned for another monumental surge in price, which could lead all the way to the $53.385 target, if not even higher,” Marks stated.
As of press time, the Polkadot price is trading 5.7% up at $6.43 with a market cap of $9.92 billion. The daily trading volume is up by 75% while the open interest has surged over %% to more than $501 million, as per the Coinglass data. Also, the 24-hour liquidations have soared to $617.94K with more than $400.50K in short liquidations.
21Shares Files for Spot Polkadot ETF
21Shares has submitted a filing to the U.S. Securities and Exchange Commission (SEC) for the launch of a spot Polkadot ETF, amid a flurry of crypto ETF filings this month. The proposed ETF would trade on the Cboe BZX Exchange and directly track the performance of Polkadot’s native cryptocurrency, DOT. Coinbase has been named as the fund’s custodian, ensuring the secure storage of underlying assets.
This month, we have seen multiple filings for Solana ETFs, XRP ETFs, Dogecoin ETFs, Litecoin ETFs, etc. Top asset managers like Grayscale and Coinshares have been rushing for this as market sentiment turns optimistic in Donald Trump’s administration.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Dogecoin’s price movement remains a matter of discussion among crypto traders on social media, with a well-known analyst pointing to a major breakout pattern that could send DOGE soaring toward $1. Popular crypto analyst Lucky (@LLuciano_BTC) recently shared his bullish outlook with his 2.2 million followers on X, stating that the coveted $1 price target for Dogecoin is now only a matter of time.
Bull Flag Pattern Signals Strong Momentum
Although Dogecoin has shown strong bullish momentum at various points, it has yet to surpass its all-time high of $0.7316 in this cycle. However, many DOGE enthusiasts remain bullish on the meme coin, with many of them looking forward to an eventual break above $1 this bull cycle. Ironically, Dogecoin hasn’t even broken above $0.5, which is the halfway mark to reach the $1 target. Nonetheless, crypto analyst Lucky noted that it’s only a matter of time before DOGE starts to trade at $1.
Lucky’s confidence is based on a technical pattern forming on Dogecoin’s price chart. Sharing his outlook in a post, he highlighted a bull flag formation on the daily candlestick timeframe. Interestingly, this bull flag has been in formation since November 2024, making it a multi-month pattern.
The pattern began with a strong rally in mid-November until it reached a multi-year high of $0.484 in early December before facing rejection. Since then, price action has shifted into the flag phase of the structure, characterized by a period of corrections and bounces off the upper and lower trendlines of the flag.
The formation of a bull flag is regarded as a strong signal for further upside, especially in bullish market conditions. If the meme coin breaks out of this structure with enough volume, it could set the stage for a sustained rally to new multi-year highs. As DOGE continues to build momentum within this setup, crypto analyst Lucky noted that the rally ahead “could be epic.”
Can Dogecoin Really Reach $1?
Reaching the $1 target would be a crazy milestone for Dogecoin, much like how Bitcoin broke above $100,000 for the first time this cycle. At the time of writing, the meme coin is trading at $0.3289 and has a market cap of $48.6 billion. If it were to reach the $1 mark, this would translate to a total market cap of about $147.8 billion.
Although some might find this unrealistic due to its status as a meme coin, calculations suggest a $1 price for Dogecoin is surely possible. It only needs a few stimulants for this to happen. One such stimulant is a Dogecoin ETF, which could have the same effect as it did for Bitcoin. If approved, a Dogecoin ETF could significantly increase investment inflows and create sustained buying pressure for the meme coin. Another factor that could improve Dogecoin’s rise is broader utility, particularly if it becomes an official payment option on a major platform like X.
Dogecoin at $1 is only a matter of time. However, it is also possible that DOGE could start to consolidate around this mark once it eventually attains it, similar to Bitcoin’s current behavior around $100,000.
Featured image from Unsplash, chart from Tradingview.com
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