DOGSHIT2, a new memecoin, surged 67% in value, hitting a $23 million market cap. The spike followed its connection to a class-action lawsuit against Pump.fun. The memecoin’s market cap has since dropped to around $4.1 million.
The Jan. 30 lawsuit claims that Pump.fun participated in unregistered security creation while earning $500 million in fees. Investors who believe Pump.fun tokens functioned as illegal securities receive legal representation from US law firms Burwick Law and Wolf Popper.
However, a twist has emerged. Crypto enthusiasts found that the wallet address for DOGSHIT2 matched the address displayed in the court documents of the lawsuit, which led to suspicions about whether law firms behind the lawsuit created the memecoin.
The launch of DOGSHIT2 in November became notable after its market capitalization reached $4 million on Jan. 31, which coincided with the lawsuit filing date. DOGSHIT2 reached its peak value at $0.003968 on February 2 before losing 34% of its worth as its market cap declined to $2.4 million.
The substantial value increase of DOGSHIT2 occurs within a general market trend for memecoins. The law firm Burwick Law pursued victims of the Hawk Tuah girl‘s memecoin while Elon Musk’s father showed interest in launching his own memecoin called MUSKIT.
The memecoins market continues to expand as CoinGecko reports that 31% of investors are interested in these coins during 2023. Memecoin mania continues to expand because it demonstrates no signs of disappearing.
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