Pump.fun Co-Founder Criticizes Tech-Focused Altcoins

Alon Cohen, co-founder of Pump.fun, recently weighed in on the current state of tech-focused altcoins, arguing that they offer little more than what meme coins provide, albeit with significant drawbacks. In a post on February 3, 2025, Cohen highlighted several key issues with these altcoins, including low circulating supply, inflated fully diluted valuations, and the overwhelming influence of venture capitalists who use retail traders as exit liquidity.

Cohen’s comments came in response to claims made by an individual suggesting that Pump.fun’s meme coin launch platform had disrupted the altcoin price cycle. He swiftly dismissed the idea, pointing out that the platform had existed months before the altcoin market downturn in April 2024.

Cohen further discussed the lasting impact of the 2024 altcoin crash on retail investors, noting that many had been “burned too hard” during the previous cycle and were now reluctant to return. “Retail was burned too hard last cycle to just come back to invest in the ‘future of finance,’” Cohen said.

He emphasized that most retail investors, particularly those with regular jobs, are not interested in the complex technological narratives often associated with altcoins. Instead, they are more focused on personal fulfillment and the opportunity to make money in a way that’s enjoyable.

This sentiment underlines the widening gap between altcoin investors who are focused on technological innovation and speculative traders looking for quick profits without considering long-term project viability.

Launched in January 2024, Pump.fun took advantage of the meme coin craze that was thriving across various online platforms like X (formerly Twitter), Reddit, Telegram, and Discord. At the time, the altcoin market was experiencing explosive growth, with the Total3 indicator reaching a peak of approximately $788 billion in March 2024.

However, the altcoin market quickly experienced a sharp decline in April 2024, and despite a modest recovery in November following a cryptocurrency rally tied to Donald Trump’s re-election, the broader market still struggled. Analysts now argue that the crypto space has become oversaturated, with too many projects competing for limited investor attention.

Despite this, altcoins supported by institutional investors have generally outperformed those without such backing throughout 2024.

In addition to market volatility, Pump.fun has found itself embroiled in legal disputes. The platform is facing a class-action lawsuit filed by law firms Burwick Law and Wolf Popper LLP, who accuse it of unauthorized use of intellectual property.

The lawsuit alleges that Pump.fun facilitated the creation of over 200 tokens that infringe on the law firms’ trademarks, including the controversial ‘Dog Shit Going NoWhere’ (DOGSHIT2) token, which was deployed on the platform without their consent.

Burwick Law and Wolf Popper LLP have made it clear that they are not affiliated with these meme coins and are taking legal action to protect their intellectual property. They have also accused Pump.fun of refusing to remove these unauthorized tokens despite their potential financial and legal repercussions for investors.

Beyond intellectual property violations, the cease and desist letter claims that Pump.fun has enabled the creation of tokens designed to harass individuals involved in the lawsuit.

As Pump.fun faces legal challenges and market uncertainty, the broader altcoin landscape continues to evolve, with investors and creators navigating a shifting environment marked by both potential rewards and significant risks.