The post A crypto lawyer predicts a ‘dramatic increase’ in memecoin lawsuits appeared on BitcoinEthereumNews.com.

Today, enjoy the Lightspeed newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the Lightspeed newsletter.  Max Burwick has run a boutique law firm focused on crypto since 2021. In a recent video call from his office in midtown Manhattan, Burwick said he’s started seeing an influx of cases from clients who lost money on memecoins. Burwick started hearing memecoin complaints over the past three months, and the trend has “increased significantly” over the past few weeks. “Did you lose money on $FRIEND? You may be entitled to compensation,” Burwick Law wrote on social media after the creators of the crypto social app friend.tech seemingly walked away from the project. He doesn’t see the new raft of memecoin clients slowing down either.  “I would say we’re gonna see a dramatic increase” in the future, Burwick said. Speculative investments that lead to lost funds and eventual lawsuits have been a part of every crypto market cycle, and this cycle’s iteration of that may come from memecoins. This year’s unique memecoin flavor is being driven by the token launchpad pump.fun, which has generated at least $1 million in revenue each of the past five days. Pump’s original promise was to prevent rug pulls, which are a type of scam where a project’s creators abscond with raised funds and leave promised tokens or NFTs valueless. Pump.fun launches don’t allow for pre-sales or team allocations that could mislead investors, so while you’re still in a casino, at least it’s a fair casino, the thinking goes. Still, B-list celebrities might want to be careful when launching memecoins. Burwick said he feels “highly optimistic” in his attempt to recover assets in some pending cases. That’s because “you have a pretty clear establishment of the Howey test for at least 50% of the…

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Filed under: News - @ October 18, 2024 6:25 pm