Memecoin Madness: DOGSHIT2 Soars Amid Pump.fun Lawsuit
A new memecoin has recently garnered significant attention within the cryptocurrency community, with its market capitalization soaring to $23 million. This surge follows accusations against the creator of another memecoin, Pump.fun, which is facing a class-action lawsuit. The lawsuit, filed by the law firms Burwick Law and Wolf Popper, claims that Pump.fun facilitated the creation of unregistered securities, allegedly profiting nearly $500 million in fees from these tokens.
Investigators noted a particular wallet address in the court documents that corresponds with the one linked to DOGSHIT2, a memecoin that launched in November. This connection has led many to speculate that the two law firms might be behind this new token. The DOGSHIT2 listing includes a cautionary message advising potential buyers against investing.
Data indicates that the value of DOGSHIT2 spiked dramatically after the news of the lawsuit broke on January 31, marking a peak market capitalization of over $23 million. However, following this high point, the token’s market cap has since diminished to around $2.4 million. It reached an all-time high price of $0.003968 on February 2 before experiencing a 34% decline, although it has rebounded slightly with a 6% increase in the past 24 hours.
This activity takes place against a broader backdrop of rising interest in memecoins, particularly as celebrity involvement continues to capture investor attention. Recently, there has been speculation about a potential memecoin launch associated with Elon Musk’s family, further elevating the profile of meme-driven tokens. Notably, the trading volume for Pump.fun reached an all-time high of $3.3 billion. A recent analysis revealed that memecoins accounted for nearly 31% of investor interest throughout 2022, highlighting their growing significance in the cryptocurrency landscape.