Baton Corporation, the parent company of decentralized memecoin platform Pump Fun, is acting tough and fast, signaling that it intends to put up a fierce legal fight over a lawsuit filed by Burwick Law.

In a lawsuit filed by Burwick Law, Burwick accuses Pump Fun of profiting millions of dollars through what they describe as ‘unregistered volatile securities.’ Baton and Pump Fun’s CEO Jared L. Williams called the charges nonsense in a press release.

Baton’s defense team is nothing short of amazing. Leading the team is Daniel L. Sachs, a former SEC investigator known for his aggressive defense strategies in high-profile financial cases. He is joined by Kyle P. Dorso, a crypto litigation expert with a deep background in token classification law, as well as Stephen D. Palley, a veteran attorney who has long worked at the intersection of blockchain innovation and U.S. regulatory law.

Thread: https://t.co/BGLlmEreUW – the FUD-triggered rebound @pumpdotfun

1/ Everyone thought #pumpfun was finished after last day ´s Twitter scare—that platform is dead, volume collapsing, interest gone… FUD was everywhere. pic.twitter.com/KBoj4k1cmy

— Stanislav Lepka (@LepkaStanislav) June 19, 2025

The lawsuit is now ongoing, and Pump Fun’s lawyer has filed a motion to dismiss. Meanwhile, the platform is still under intense scrutiny from regulators, skeptics, and the crypto community at large. Critics have taken a position of already predicted doom for the platform, especially after a wave of fear, uncertainty, and doubt (FUD) spread like wildfire on X (formerly Twitter), accusing the platform of being run in a shady manner and prompting panic among retail traders.

Despite the Panic, the Platform Persists

Even as the sensationalist headlines shrieked disaster and social media sentiment sunk to an all-time negative low, the on-chain data told a different story—and one that was far more surprising. Per analytics platform Dune, the trading volume for Pump Fun held strong throughout the drama, and, in fact, surged in the days following the Twitter scare.

Pump Fun’s parent company, Baton Corporation, has hired top lawyers from Brown Rudnick to fight the lawsuit filed by Burwick Law. The defense team includes former SEC investigator Daniel L. Sachs, crypto litigation expert Kyle P. Dorso, and veteran attorney Stephen D. Palley.…

— Wu Blockchain (@WuBlockchain) June 19, 2025

In the past week, daily trading activity has seen meme token trades range between 2 to 2.7 million per day on the platform. The equivalent in USD varied between $120 million and $184 million—numbers that go against the narrative that the platform is dying. What accounts for this surge in volume? Not the FUD, since that just got the community rallying behind the platform yet again.

It appears to be a recurring theme in the volatile world of memecoins that negative publicity serves as rocket fuel for the platforms. Instead of pulling away, users seemed to lean in more. The new traders entered the fray, and the existing ones doubled down, viewing the backlash as a potential buying opportunity.

FUD as Fuel: Why the Memecoin Crowd Didn’t Flinch

The memecoin ecosystem has a psychological aspect that traditional finance has not understood very well. It’s not just about utility or market fundamentals—it’s also about what is called, for lack of a better term, hype. And memecoins are really good at generating hype, partly because of the ecosystems that have grown up around them. You can now, for instance, join a Discord server for a specific memecoin.

The sentiment that seems to prevail among traders is: “FUD = fuel.” Many speculators took the dip in sentiment and price as a classic opportunity to “buy the blood.” As the legal drama continued to play out in the headlines, users once again piled back onto the platform, proving that narrative doesn’t always match up with reality.

After all, drama is what makes trading in memecoins so attractive. Traditional investors run away from the kind of price volatility that meme traders actually love. They understand that investing in such coins is a bet on the kind of attention that always seems to find the next big thing. To this community, all these legal problems are just one more part of the ongoing story.

The Bigger Picture: Data Over Drama

Pump Fun teaches us a lesson that reaches far beyond the realm of crypto speculation: our emotions can throw us off, but the data is usually accurate and dependable. The legal troubles could become something serious and very important, but the immediate existence and persistence of the platform in question is based on real, and to my way of thinking, pretty impressive, measurable activities on-chain.

At its core, this dispute highlights a basic reality of contemporary financial markets—particularly crypto: what gets counted counts. The metrics that people talk about, especially in private conversations, are the things that drive momentum.

It remains to be seen whether Pump Fun can weather the upcoming legal storm. But if recent performance is any indicator, this is a platform—and a community—not ready to go quietly into the crypto graveyard.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Filed under: Bitcoin - @ June 22, 2025 3:27 am