Max Burwick called Pump.fun the “evolution of MLM scams,” accusing it of exploiting investors. His law firm is now preparing a lawsuit.
On January 15, Max Burwick, founder and partner at Burwick Law, issued strong criticism of platforms like Pump.fun as examples of what he calls “the ultimate evolution of multi-level marketing scams, tackling human despair and the digital attention economy.” .”
He criticized that these projects exploit the “digital attention economy” to lure people – particularly young people or those facing economic hardship – and trap them in a cycle designed to enrich the first initiates.
Pump.fun, according to Burwick, would present “exit liquidity” as a game, shedding light on the very real financial losses inflicted on late entrants.
Pump.fun is a decentralized platform on the Solana (SOL) blockchain that simplifies the process of creating and trading meme coins, aiming to make participation in the crypto market accessible to non-technical users.
Burwick was not shy about taking shots at the platform, saying it was the antithesis of blockchain innovation. He claims that platforms like Pump.fun do not embody the core principles of transparency, fairness, and empowerment that crypto was initially built on.
Burwick reiterated that the meme pieces are not innovative in themselves, but attack addiction and youth. His comments come as Burwick Law takes up the challenge in a court case involving Pump.fun, demanding accountability for the company’s conduct within the crypto ecosystem.
Pump.fun faces legal action
On January 15, Burwick Law said it was working with people who had lost significant amounts of money to coins through rug draws and misleading promises linked to the platform. The law firm has now created a website to help clients who lost millions of dollars in the fiasco.
Burwick Law claimed that Pump.fun hosted obscene and corrosive content displaying violence, racism and anti-social behavior. They attacked the platform’s anonymous creators and other members of the coin ecosystem for luring everyday investors with false promises.
As of January 15, the platform’s total revenue exceeded $422 million, with nearly $25 million generated in the last seven days alone, according to Dune Analytics.
Burwick Law claims that the coin launchpad offers little real support to its users and instead facilitates rug pulls, where developers walk away with investors’ funds after raising capital. “As the system grows, early adopters cash out by handing over their holdings to later participants, thereby stealing them,” Burwick noted.
In November 2024, the platform received major backlash due to its live streaming functionality. A user threatened to harm himself to promote his coin during a live stream, causing panic throughout the crypto community. Although Pump.fun acknowledged the damage caused and changed its moderation policies, there was no mention of the losses suffered by investors.
According to an analysis by Pump.fun wallet reviewer Adam Tehc, only 0.4% of the 14 million wallets interacting with Pump.fun reported profits above $10,000, highlighting how most users suffered. losses.
Max Burwick isn’t the only one with a strong stance against the platform. On January 15, Cosmo Jiang of Pantera Capital told Wire “that the majority of meme coins launched through Pump.fun end up almost worthless,” sharing a similar sentiment to Burwick.
