What is Pump.fun?

Launched in January 2024, Pump.fun is a platform on the Solana blockchain that allows users to create and trade meme coins using an automated bonding curve mechanism. Each token created on Pump.fun is deployed through a smart contract with a pre-set linear bonding curve, meaning the token's price increases as more units are bought and decreases as they are sold. The platform emphasizes fast deployment, minimal cost, and no-code token creation. On July 12, 2025, Pump.fun released PUMP via an initial coin offering (ICO).

What is PUMP?

PUMP is a Solana Program Library (SPL) token on the Solana Network. It has a maximum supply of 1 trillion units with a circulating supply of approximately 354 billion units at the time of publication. PUMP launched via an initial coin offering (ICO) on July 12, 2025.

Risk Statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.

Wealthsimple has performed an assessment of whether PUMP can be supported by Wealthsimple's platform, including whether PUMP is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated PUMP based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of PUMP, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created PUMP;
• The supply, demand, maturity, utility and liquidity of PUMP;
• Material technical risks associated with PUMP, including any code defects, security breaches and other threats concerning PUMP and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with PUMP, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of PUMP; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether PUMP, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple's original assessment of those assets, including Wealthsimple's assessment of the application of securities and derivatives laws. Any significant changes relating to PUMP may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support PUMP.

Like all other crypto assets, there are some general risks to investing in PUMP. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

Additional Risks / Information

Pump.fun and its founders are currently subject to multiple class-action lawsuits filed in early 2025 in the U.S. District Court for the Southern District of New York. These legal actions, including Aguilar v. Baton Corporation Ltd. (Case No. 1:25-cv-00880) and Carnahan v. Baton Corporation Ltd. (Case No. 1:25-cv-00490), were brought forward by the law firms Burwick Law and Wolf Popper LLP on behalf of individuals who purchased memecoins through the platform. The plaintiffs allege that the memecoins launched on Pump.fun constitute unregistered securities under U.S. law, referencing the standardized nature of their issuance, pricing, and promotion, as well as the platform's fee structure. The lawsuits allege that Pump.fun, its parent company, Baton Corporation Ltd., and its co-founders violated Sections 5, 12(a)(1), and 15 of the Securities Act by offering and selling these alleged securities without proper registration.

As a result of the ongoing litigation, there may be higher legal and regulatory risks associated with Pump.fun. As a result of developments in the litigation or otherwise, Wealthsimple may determine that it must suspend or end support for the PUMP token, with immediate effect and in accordance with the Wealthsimple Crypto Product Risk Disclosure.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading PUMP. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: July 17, 2025