A company is trying to compete with the meme coin launch platform Pump.fun and has threatened the competitor with a lawsuit earlier this month. Just 10 days later, the project launched a token on Pump.fun and admitted to "rug pulling" after the founder claimed to have made $800,000.
Yonatan Badash founded Pump Pumpkin in December 2024, announcing the project with a Deepfake video of Morgan Freeman. This came just a month after he pretended to steal a famous kid's dog in a rug pull token livestream - the kid is known as the Quant kid.
As the new year began, Pump Pumpkin sent a legal notice to Pump.fun, threatening to file a lawsuit seeking over $1 billion in damages based on allegations that the project had hidden the actual fees.
Badash said Pump Pumpkin is hiring a legal team to pursue this lawsuit. However, he also said the company is unsure where to file the lawsuit as Pump Pumpkin is based in Israel, while Pump.fun is based in the UK. He hopes the two sides can reach a settlement out of court.
Solana tokens: PPA and PP.
Pump Pumpkin plans to launch the PPA token on Pump.fun, which will then be swapped for the PP governance token of the project. However, the PPA launch has faced many issues.
Pump Pumpkin heavily promoted the token launch event on social media, counting down the minutes to the release and livestreaming on X. The token was then launched on Pump.fun.
PPA price to drop 92% in six seconds. Then, 14 minutes later, an additional $3,840 worth of tokens were sold, causing the PPA price to drop another 76%.
Despite these two major shocks, the token then surged over 700% in the following minutes. At this time, cheers could be heard from the room next to Badash's livestream.
"That's my team getting confused by what's happening," the founder said, laughing on the livestream with nearly 85,000 viewers. Badash explained that the team was struggling to buy enough token supply as too many people were buying, causing the price to rise rapidly.
On the livestream, Badash shared his screen as he tried to control the flood of angry comments. He blocked words like "fuck," "jew," and even the Palestinian flag, as some viewers claimed to have seen him in a Telegram group called "Fuck Arabs."
Investors allege that some people in the project had bought tokens early and sold when the price spiked. Many wallets had bought tokens on Pump.fun and made thousands of dollars in profits, such as wallet 93Fy which bought 1.75 SOL ($309) worth of PPA and sold it for $23,100.
As the outrage grew in the Telegram group, the founder started taunting the investors.
One user claimed to have lost "everything." In response, Badash called the person a "poor guy" and threatened to "dump" 30% of his token supply if the price didn't rise. The investor who lost money then threatened to kill Badash. However, this did not stop the project founder from boasting about his plans.
"I'm about to rug pull, I've made enough money from this gig and have no intention of continuing to 'scam' investors further," Badash said in the project's Telegram group. "Just made $800,000... [racial slur]."
PPA dropped 93%, leaving the market cap at $140,000 within 10 hours of reaching an ATH market cap of $2.1 million.
Afterward, Pump Pumpkin announced that holders could swap one PPA for one PP token, and that PPA would be burned in the process. However, in the Telegram group, Badash stated that PP had no contract address. Many in the Telegram group reported that they had burned their PPA tokens but received no PP tokens, further fueling the fraud allegations.
meme coin has even been created calling for Badash's arrest. The founder finds this amusing.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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