A law firm that sued Pump.fun, a platform for creating Solana-based memecoins, is now being linked to a controversial cryptocurrency called DOGSHIT2. At its highest value, DOGSHIT2 had a market capitalization of over $23 million.
Pump.fun Accused of Generating $500M from Unregistered Securities
DOGSHIT2, a memecoin, was reportedly created to demonstrate how easy it is to launch tokens using Pump.fun. On January 30, U.S. law firms Burwick Law and Wolf Popper filed a class-action lawsuit against Pump.fun. The lawsuit claims the platform facilitated the creation of unregistered securities and made nearly $500 million in fees. As of Jan. 26, the platform generated $29.04 million in daily revenue.
Pump.fun daily revenue reached $29 million as od Jan.26. Source: DefillamaData from Dune Analytics highlights that the platform has over 13.55 million wallet addresses. However, only 55,296 wallets have realized profits exceeding $10,000, indicating that 99.6% of traders have not achieved that much gains.
Shortly after the lawsuit was filed, the crypto community discovered that an address listed in the court documents matched the wallet behind DOGSHIT2. This led to speculation that the law firms themselves were responsible for launching the token.
DOGSHIT2 Hits $23M Market Cap Before Dropping to $2.4M
DOGSHIT2 launched in November with a warning label: “Don’t buy this coin.” Despite this, its value surged after January 31, when the lawsuit gained attention. The token’s market cap peaked at $23 million before falling to $2.4 million. On February 3, its price hit a record $0.003968 before dropping by 34%. In the last 24 hours, it has risen 6%.
DOGSHIT2 has seen a big spike in activity and value since the crypto community found out about it. Source: Pump.funBurwick Law has been involved in other crypto-related cases. In December, the firm called for investors who lost money in influencer Hailey Welch’s Hawk Tuah memecoin to contact them.
Celebrity-Backed Tokens Fuel Memecoin Craze
Memecoins have gained more community’s attention after Donald Trump and his wife Melania launched their own memecoin. Pump.fun saw a record $3.3 billion in weekly trading volume following the launch of Trump family-related memecoins.
Meanwhile, Elon Musk’s father has hinted at launching his own memecoin, called Musk It (MUSKIT). He plans to raise up to $200 million through this memecoin. The proceeds will fund a for-profit think tank, the Musk Institute, which he claims will focus on advanced engineering projects.
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