Solana News: Legal Action Looms for Pump.fun Memecoin Launchpad

A US-based crypto law firm, Burwick Law, is preparing to take legal action against the Solana memecoin launchpad, Pump.fun, on behalf of investors who suffered significant losses. The firm is urging affected investors to come forward as they may be eligible for compensation.

US Law Firm Targets Legal Action Against Solana Memecoin Launchpad Pump.fun

A US-based crypto law firm, Burwick Law, has announced plans to initiate legal action on behalf of investors who incurred losses due to the Solana memecoin launchpad, Pump.fun. The firm has been working with individuals who have lost significant amounts of money to memecoins, rugs, and unfulfilled promises. Burwick Law is urging investors who incurred losses on any Pump.fun memecoins to come forward, as they may be eligible for compensation. The law firm criticizes Pump.fun for exploiting users and promoting harmful content, including illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violence, and other antisocial acts. Burwick Law asserts that Pump.fun has collected hundreds of millions of dollars in fees while displaying such content.

Pump.fun Faces Lawsuit Over $398M Earnings

Burwick Law, a prominent New York-based law firm, has announced its intention to pursue legal action against Pump.fun, a Solana-based memecoin launchpad, on behalf of aggrieved investors. The platform has come under scrutiny for allegedly engaging in months of dubious promotional practices. Pump.fun, which dominates memecoin launches on Solana, has generated $398 million in earnings amid growing legal scrutiny. Burwick Law's latest move follows its recent federal lawsuit against the creators of the ill-fated Hawk Tuah memecoin. The law firm alleges that Pump.fun has collected hundreds of millions of dollars in fees while promoting illicit activities, including drug use, self-harm, racism, and antisemitism.

Solana (SOL) Price Prediction For January 16

Solana (SOL) is currently trading around $205.73, marking a 0.85% increase from its previous close. The day's trading has been active, with prices ranging between a low of $196.06 and a high of $206.13. Technical indicators suggest a balanced market sentiment, with the Relative Strength Index (RSI) at 37.70, indicating neither overbought nor oversold conditions. The MACD indicator reads -5.18, typically interpreted as a buy signal, suggesting potential upward momentum for SOL.

Solana Proposes New Inflation Rate Based on Community Consensus

Solana is considering a change in its inflation rate following a community vote. The new rate will be adjusted to reflect current market conditions, as the previous rate was deemed arbitrary and unrelated to demand. Mert Mumtaz, co-founder of Helius Labs, is preparing a proposal to re-establish the inflationary pace of SOL tokens, which is expected to be presented next week. This proposal aims to align Solana's inflation rate with the community's vision for reduced inflation. As of January 2025, Solana's inflation rate is 4.78%, with plans to decrease by 15% every 180-epoch period.