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Can the PUMP token survive after a fall of 80% amid legal troubles?
$PUMP has fallen 80% from its all-time high to a record low of $0.0018, as a federal judge approved a large-scale class action lawsuit against the platform and Solana Labs.
🔹 The lawsuit alleges a fraud system in which insiders bid higher than retail investors through linked curves. The result? 98.6% of the 14 million memecoins issued have fallen to zero, causing estimated losses for traders from $4 to $5.5 billion.
🔸 Evidence shows that the top 10 holders control 70% of the PUMP supply. Internal conversations have revealed coordinated early token purchases, leading to serious allegations of RICO and corruption.
🔹 Investors are retreating. The actual cash flow surged by 144.88% due to strong sell-offs, and future cash flow dropped to -$3.21 million. With the RSI at an oversold level of 28, the token is falling sharply without immediate support.
With the federal lawsuit revealing that 98.6% of the tokens are flawed due to design and internal control of 70% of the supply, is PUMP a worthy investment, or is the price of $0.0018 a surrender to high risk?