PUMP token jumps 25% as Pump.fun, Solana Foundation face class action heat

Pump.fun emerged as one of Solana‘s top revenue-generating applications by offering simplified token creation tools for meme coins. The platform quickly attracted significant on-chain activity and became a major driver of Solana’s reputation in speculative digital assets.

The platform‘s reputation shifted following a February 2025 report from analytics firm Solidus Labs titled “The 2025 Rug Pull Report: Rug Pulls and Pump-and-Dumps on Solana.” The report found that the majority of tokens on Pump.fun and liquidity pools on Raydium exhibited characteristics of pump-and-dump schemes or rug pulls, according to the firm’s analysis.

The report alleged that the platform and associated protocols extracted billions of dollars from investors throughout 2025, with a high rate of fraudulent token launches.

A class action lawsuit filed against Pump.fun and the Solana Foundation alleges insider trading and improper token launch practices, introducing legal uncertainty for both entities.

Solanas price has declined amid the negative news flow, pulling back from recent highs before stabilizing near key support levels. Technical analysts report elevated volatility, with upside moves facing resistance.

Despite price weakness, Solanas on-chain metrics remain robust, with developer activity, transaction volumes, and wallet engagement showing strength relative to competing Layer-1 blockchain networks, according to blockchain analytics platforms.

Market analysts suggest Solanas price is currently driven more by narrative concerns than fundamental on-chain health.

The PUMP token has outperformed Solana during the same period, rallying while the broader network‘s native token declined. The divergence comes despite reports of large fund movements from Pump.fun-linked wallets and selling activity by the platform’s developers in 2025, which initially created selling pressure on the token.

Recent buyback activity has supported PUMPs price performance, with significant token repurchases reported by the platform. The buybacks have fueled speculation about a potential airdrop to token holders, according to cryptocurrency market analysts.

Some analysts indicate PUMPs long-term valuation will depend on whether Pump.fun implements structural changes, including revenue-sharing models, improved launch safeguards, and enhanced transparency measures for token holders.