Solana Under Scrutiny: The Potential Impact of Pump.fun

As memecoins have surged in popularity throughout 2025, they have gained significant traction in the market. Notable events, such as the launch of Dogecoin's [DOGE] ETF and the excitement surrounding the Bonk [BONK] ETP, have prompted investors to reevaluate their speculative strategies.

Key Takeaways

2025 has seen a rise in memecoins like Dogecoin and Bonk, impacting investor strategies.
Solana has gained popularity as a platform for launching memecoins but faces a class-action lawsuit.
The lawsuit targets market manipulation practices within the Solana ecosystem, concerning its internal validator system.
Approximately 70% of PUMP's circulating supply is controlled by a small group of investors, limiting retail participation.
The outcome of this lawsuit could significantly affect Solana’s reputation and operational framework.

Solana on trial: How Pump.fun could shake up the network

Solana [SOL] has emerged as a preferred platform for memecoins, with launches like Official Trump [TRUMP] and Melania Meme [MELANIA] solidifying its status as a hub for fast-paced, speculative activities. However, this burgeoning enthusiasm now faces a serious legal challenge. A federal court has recently approved a class-action lawsuit targeting Pump.fun, Solana Labs, and other projects associated with Solana, accusing them of market manipulation.

Solana
Source: X

The lawsuit raises critical questions about the integrity of Solana's technology. It suggests that the issues at hand extend beyond mere timing or strategy; they implicate the core of the Solana network itself.

Key Legal Concerns for Solana

Solana Labs is currently facing scrutiny regarding its internal validator system. This structure enabled Pump.fun, a platform for launching memecoins, to facilitate the rapid creation, trading, and movement of millions of memecoins on Solana. A well-known analyst argues that this legal challenge is based on the fact that supply has become excessively concentrated.

As illustrated in the accompanying chart, roughly 70% of the circulating supply of PUMP is held by just ten investors, leaving average retail investors sidelined while prices remain capped.

PUMP
Source: SOLScan

As a result, plaintiffs have decided to escalate their case to federal court. PUMP's price volatility indicates a troubling trend; it is currently trading about 3.15% below its initial coin offering (ICO) price of $0.02. Allegations against insiders suggest they are manipulating prices by tightly controlling supply, adversely affecting retail investors.

Ultimately, PUMP represents a broader issue within the Solana network rather than being the root cause itself. This situation raises significant concerns about the potential ramifications if Solana is subjected to further legal examination.

Conclusion

The legal challenges facing Solana due to the Pump.fun lawsuit underscore critical issues within its network structure. As the situation develops, both investors and the broader cryptocurrency community will be paying close attention to how these dynamics unfold and what they may mean for the future of Solana.