Pump.Fun Co-Founder’s Pre-Sale Scam Remark Resurfaces

An old post by Pump.fun co-founder Alon has resurfaced just days before the platform’s next major token pre-sale on July 12. The March 31, 2024 post is now sparking renewed debate over the legitimacy of token launches done through pre-sale methods.

Co-Founder’s Old Warning Against Pre-Sales Sparks Backlash Ahead of Pump.fun Token Launch

In the resurfaced post on X, Alon outlined two options for launching a token on Crypto Twitter. The first option involves running a pre-sale to justify valuation. According to him, this comes with marketing pressure and the risk of sniper bots.

The second option is what he called a “Pump.fun launch,” which lets the market decide value with fewer risks for creators. But what stirred the most attention was his blunt conclusion: “Only upside to presales are that they allow you to pocket raised $$$. Conclusion: every pre sale is a scam.”

These remarks come just three days before Pump.fun’s token sale. Meanwhile, the context matters. At the time of Alon’s original post, the crypto market was flooded with questionable token projects.

Pre-sales often ended with insiders dumping on buyers. His warning reflected frustrations over this model. Hence, critics are asking why Pump.fun is moving forward with a pre-sale after one of its co-founders had publicly rejected the concept.

Resurfaced Posts and CEX Partnership Stir Debate Ahead of July 12 Token Launch

With the July 12 event approaching, trust in the project’s intentions is once again being questioned. Pump.fun is known for its simplified, meme-driven token launches.

It has gained popularity for enabling quick, low-cost deployments. The July 12 sale is expected to bring heavy activity.

However, the resurfaced comments may influence how users will approach the offering. In a separate post on X, Alon also said that exchange listings were “dead” due to lack of transparency and poor coin choices.

He insisted that everything that matters in crypto is now on-chain. Alon’s post emphasized how centralized listings often hurt investors by promoting low-quality tokens.

Now, PUMP is set to debut on one of the biggest centralized platforms. Bybit’s decision to work with Pump.fun may help expand reach regarding the PUMP token sale.

Still, the mixed perspective from the project’s leaders will continue to generate debate. The token launch is scheduled to begin on July 12 with geographic restrictions.

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Paul

Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
He can be reached via [email protected]

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