Solana-based meme coin creation platform Pump.fun has been hit with a proposed class-action lawsuit accusing it of violating U.S. securities laws. The suit, filed on January 30, alleges that every token created through Pump.fun constitutes an unregistered security, from which the platform has profited nearly $500 million in fees. Alleged Securities Violations and Investor Losses The lead plaintiff, Diego Aguilar, claims to have suffered financial losses trading three specific Pump.fun-created meme coins, FWOG, FRED, and GRIFFAIN. According to the filing , these tokens were aggressively marketed using meme culture and promises of exponential returns, enticing investors but ultimately leading to significant financial losses. FWOG, for instance, was promoted as having reached a $500 million market cap before its value dropped. “Pump.Fun’s core function is to work alongside influencers to co-issue and market unregistered securities. Inherent to its operations is a novel evolution in Ponzi and pump-and-dump schemes,” read the document. Although the platform does not directly create the tokens in question, the complaint argues that it facilitates and organizes their launch through automated tools, allowing users to create and sell digital assets within minutes. This, according to the suit, makes the company a “joint issuer” of all tokens launched on it. The case names U.K.-registered Baton Corporation, the alleged operator of Pump.fun, and three of its co-founders—Alon Cohen, Dylan Kerler, and Noah Tweedale—as defendants. The plaintiffs are seeking legal relief in the form of rescinding all token purchases, monetary damages for affected investors, and coverage of litigation costs. Criticism and Controversy This is not the first time the platform has faced legal action. Just two weeks earlier, on January 16, Burwick Law filed a separate class-action suit on behalf of investor Kendall Carnahan. That case also accused Baton Corporation and its executives of selling unregistered securities. Specifically, it targeted the PNUT token, a Solana-based meme coin inspired by Peanut the Squirrel that allegedly reached a market cap of $1 billion. The firm’s founder, Max Burwick, has been vocal in his criticism of such sites. On January 15, he publicly condemned them as “the ultimate evolution of multi-level marketing scams, preying on human desperation and the digital attention economy.” A day later, Burwick Law formally announced its legal campaign against the company, alleging that investors had fallen victim to meme coin rug pulls and misleading promises. Pump.fun also faced controversy following its November 2024 introduction of a livestream function to enhance user engagement. Some users quickly abused the feature to broadcast explicit and disturbing content. Following public backlash, the company was forced to shut down the livestream, leading to a marked drop in revenue. The post Pump.fun Faces Class Action Over Alleged Securities Law Breaches appeared first on CryptoPotato .
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SBI Holdings Becoming the MicroStrategy of XRP
SBI Holdings , a major Japanese financial conglomerate, has emerged as one of the most significant institutional supporters of Ripple and XRP. Recent revelations indicate that SBI’s investment in Ripple and its XRP holdings are valued at approximately ¥1.6 trillion ($10 billion), surpassing the company’s entire market capitalization of ¥1.2 trillion. This striking dynamic has led some analysts to compare SBI Holdings’ XRP strategy to MicroStrategy’s aggressive accumulation of Bitcoin (BTC). XRP DROPZ recently shared his thought: “Imagine SBI Holdings becoming the Microstrategy of XRP ” With the GAM Global Special Situations Fund now urging SBI Holdings to implement a structured and public XRP accumulation program—akin to MicroStrategy’s Bitcoin strategy—the stage may be set for a new institutional paradigm in the digital asset space. SBI Holdings and XRP: A Deepening Relationship SBI Holdings has been a strong proponent of Ripple and XRP for years. Through its subsidiary, SBI Ripple Asia, the company has played a pivotal role in expanding Ripple’s blockchain-based financial solutions across Asia. SBI has also integrated XRP into various financial products, including remittances, lending, and institutional settlements. Key elements of SBI’s XRP engagement include: Equity Investment in Ripple Labs: SBI is a major shareholder in Ripple, giving it direct exposure to the company’s growth and influence over its strategic direction. XRP as a Liquidity Tool: SBI has long promoted XRP as a liquidity tool in cross-border payments, particularly in Asia. XRP Dividend Programs: SBI has previously offered XRP dividends to its shareholders, further demonstrating its commitment to the asset. The sheer scale of SBI’s investment in Ripple and XRP—now exceeding its market capitalization—suggests that the company sees XRP as a long-term strategic asset. This mirrors MicroStrategy’s approach to Bitcoin. MicroStrategy’s Bitcoin Playbook MicroStrategy, a US-based business intelligence firm, has redefined corporate treasury management by aggressively accumulating Bitcoin. Since 2020, the company has continuously purchased BTC , using excess cash and debt financing to expand its holdings. MicroStrategy’s key Bitcoin strategies include consistent Bitcoin accumulation, debt financing for crypto purchases, and public endorsement of BTC as a reserve asset. MicroStrategy’s unwavering commitment to Bitcoin has made it the largest corporate holder of BTC and has significantly influenced the broader crypto market. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Could SBI Holdings Adopt a Similar Strategy? The GAM Global Special Situations Fund has urged SBI Holdings to formalize its XRP accumulation strategy just like MicroStrategy’s Bitcoin playbook. The logic behind this proposal is compelling: Market Signaling : A structured and public XRP accumulation program would signal retail and institutional investors about SBI’s long-term confidence in the asset. Institutional Adoption Catalyst : MicroStrategy’s Bitcoin purchases helped drive corporate interest in BTC, in the same manner, SBI’s structured approach could accelerate XRP’s adoption among institutions. Balance Sheet Strengthening : If XRP appreciates over time, SBI’s investment could significantly enhance its financial position, similar to how MicroStrategy’s Bitcoin holdings have outperformed its core business revenue. However, there are notable differences between Bitcoin and XRP that could influence SBI’s approach: Regulatory Considerations: XRP has faced ongoing legal and regulatory scrutiny, especially in the U.S., which could impact SBI’s ability to execute a MicroStrategy-style accumulation. Use Case Differences: While Bitcoin is widely viewed as “digital gold,” XRP is designed for utility in payments and liquidity solutions. SBI may need to frame its investment strategy differently. Market Liquidity and Volatility: XRP’s market behavior differs from Bitcoin’s, and large-scale purchases could impact price stability differently. SBI Holdings is already one of the largest institutional backers of XRP, and its current exposure surpassing its market cap is a strong testament to its confidence in Ripple’s ecosystem. If SBI adopts an active and transparent XRP accumulation strategy, similar to MicroStrategy’s Bitcoin playbook, it could reshape institutional adoption of XRP and redefine how financial giants integrate crypto assets into their balance sheets. As the crypto industry evolves, SBI’s next moves could set a precedent for other financial institutions looking to integrate digital assets into their long-term strategies. Whether this will lead to a full-fledged MicroStrategy-style XRP play remains to be seen, but one thing is clear—SBI Holdings is deeply committed to the future of XRP. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post SBI Holdings Becoming the MicroStrategy of XRP appeared first on Times Tabloid . Crypto Potato
Grayscale Announces Bitcoin Mining Industry ETF (MNRS)
On Jan. 30, the firm announced the Grayscale Bitcoin Miners ETF with the ticker MNRS. The product is a passively managed ETF tracking the mining industry and the Indxx Bitcoin Miners Index. “MNRS provides exposure to Bitcoin Miners and the global Bitcoin mining industry at a time when we’re seeing unprecedented interest and growth in Bitcoin,” stated Grayscale. The fund provides exposure to companies involved in Bitcoin mining and network verification, mining pool services, and infrastructure support, such as data centers, ASIC hardware, and GPUs. Introducing the Grayscale Bitcoin Miners ETF (ticker: $MNRS ) $MNRS offers investors targeted, pure-play exposure to #Bitcoin Miners and the Bitcoin Mining Industry, available directly in your investment account. Learn more about $MNRS : https://t.co/kCpi8yOYF1 pic.twitter.com/6z5Kctq2Xy — Grayscale (@Grayscale) January 30, 2025 Grayscale Expands Offerings Digital asset investor Mike Alfred said it was good timing, explaining that the fund tracks the Indxx Bitcoin Miners Index (IBMIIN) and its largest positions initially are Marathon Holdings (MARA) (16.9%), Riot Platforms (RIOT) (12.1%), Core Scientific CORZ (9.33%), CleanSpark (CLSK) (4.86%), and IREN (4.43%). David LaValle, Global Head of ETFs at Grayscale, said that BTC miners “are well-positioned for significant growth as Bitcoin adoption and usage increases, making MNRS an appealing option for a diverse range of investors.” Grayscale is the issuer behind four major spot ETFs, the Grayscale Bitcoin Trust ETF (GBTC), Bitcoin Mini Trust ETF (BTC), Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH). GBTC has lost $21.8 billion in outflows since spot ETFs were approved in the US a year ago. However, it still has $21 billion in assets under management and holds 201,319 BTC, according to the official website. Its lower fee Bitcoin Mini Trust has seen inflows of $1.2 billion over the past year, ranking it fifth among the eleven spot BTC ETFs in the US. The company has filed applications with the US Securities and Exchange Commission for a spot Litecoin ETF and spot Solana ETF. Crypto ETF Latest News On Jan. 30, the SEC approved an application from Bitwise to list a joint spot Bitcoin and Ethereum ETF offering exposure to both assets. The “Bitwise Bitcoin and Ethereum ETF” would hold BTC and ETH weighted according to each asset’s relative market capitalization, which was 83% BTC and 17% ETH at the time of filing. Bitwise also filed for a spot Dogecoin (DOGE) ETF this week, while Tuttle Capital filed for ten leveraged crypto ETFs. The post Grayscale Announces Bitcoin Mining Industry ETF (MNRS) appeared first on CryptoPotato . Crypto Potato