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Pump.Fun And Meme-Coins: A Case Study In The Legal Commodification Of Ponzi-Like Tokenomics

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  • Dan Valeriu VOINEA

    (University of Craiova, Romania)

Abstract

Launched in 2024, Pump.fun enabled the instant minting and trading of millions of tokens, generating hundreds of millions in fee revenue by capitalizing on speculative frenzy. While positioned as a form of participatory culture and financial democratization, the platform's ecosystem exhibited characteristics analogous to Ponzi schemes: value derived from continuous new investment rather than fundamentals, enriching early insiders while over 99% of tokens collapsed, leading to widespread retail losses. Our analysis explores the regulatory gray area these meme-coins occupy, often evading securities classification while attracting scrutiny from bodies like the UK's FCA and prompting class-action lawsuits in the U.S. that allege the sale of unregistered securities. By synthesizing financial history, communication theory, and legal analysis, we argue that Pump.fun exemplifies how modern fintech can package and sell speculative mania as a service, outpacing regulatory frameworks and raising urgent ethical questions about consumer protection, platform responsibility, and the volatile intersection of internet culture and financial markets.

Suggested Citation

  • Dan Valeriu VOINEA, 2025. "Pump.Fun And Meme-Coins: A Case Study In The Legal Commodification Of Ponzi-Like Tokenomics," Annals of the University of Craiova for Journalism, Communication and Management, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 11(1), pages 15-38, July.
    • Handle: RePEc:edt:aucjcm:v:11:y:2025:i:1:p:15-38
    DOI: 10.5281/zenodo.15851137
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    References listed on IDEAS

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    1. Yousaf, Imran & Pham, Linh & Goodell, John W., 2023. "The connectedness between meme tokens, meme stocks, and other asset classes: Evidence from a quantile connectedness approach," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 82(C).
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    • Z0 - Other Special Topics - - General

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