Pump.fun Co-Founder Dylan Kerler Allegedly Tied to 2017 ICO Scams

Dylan Kerler, a co-founder of the world’s largest memecoin launchpad, Pump.fun, has built a platform that revolutionized crypto content creation, enabling anyone to launch their own digital coins quickly and easily, and earn money in the process. However, a WIRED investigation has uncovered evidence suggesting that years before Pump.fun’s rise, an individual using Kerler’s name profited significantly by promoting and then abandoning crypto projects as a teenager. These early ventures, tied to allegations of “rug pulls,” cast a shadow over Kerler’s role in crypto currently. The revelations prompt scrutiny of the ethical challenges and the rapid ascent of Pump.fun and their founders.

In 2017, when Kerler was reportedly 16, an individual using his name launched eight cryptocurrencies, including eBitcoinCash and EthereumCash, which gained traction on the BitcoinTalk forum. These projects followed a pattern where the developer hyped the coins, distributed free coins through airdrops, and promised ambitious features like white papers to boost legitimacy. However, both coins crashed dramatically after the developer sold large holdings, with EthereumCash plummeting 87.9% in days. Crypto security firm CertiK estimates these sales netted the developer up to $75,000 in 2017.

The tactics employed bear the all hallmarks of the modern day rug pull, where developers inflate a coin’s value through marketing before selling off their shares, leaving investors with worthless assets. On forums and Telegram groups, frustrated investors labeled EthereumCash “ECRASH” and accused the developer of orchestrating the collapse. The developer, communicating through aliases like DOMAINBROKER and ninjagod, promised progress but vanished after withdrawing funds through multiple wallets and exchanges. Such layering of transactions, analysts note, often obscures the trail of profits, raising suspicions about intent.

Digital footprints across platforms like GitHub, YouTube, and LinkedIn tie these projects to Kerler’s name and aliases like Dylan Phoon, potentially linked to a relative, Kee Fatt Phoon, listed in related corporate filings. Electoral records and property visits further place Kerler in Brighton, England, aligning with the developer’s stated location. While Kerler and Pump.fun did not respond to inquiries from WIRED, the evidence suggests a connection between the teenage crypto ventures and the now-reclusive co-founder.

Pump.fun’s Rise Amid Ethical Concerns

Launched in January 2024 by Kerler, Noah Tweedale, and Alon Cohen, Pump.fun has become the epicenter of memecoin trading, generating over $600 million in revenue from a 1% trading fee in just 15 months. The platform’s streamlined approach allows users to create and trade volatile memecoins, often driven by speculation rather than utility. Its founders claim it standardizes coin issuance to protect investors, yet the platform has not eradicated rug pulls, with incidents like a teenager livestreaming a $30,000 dump in November 2024 highlighting ongoing issues. This led to the platform suspending the livestream feature in 2024, to bring it back earlier this month with new moderation rules and livestreaming guidelines.

Kerler’s alleged past raises questions about the platform’s commitment to investor safety. During the 2017 initial coin offering (ICO) boom, also at which during this time there were many Bitcoin fake forks happening, from which eBitcoinCash and EthereumCash emerged, was rife with scams, as developers exploited minimal barriers to entry and investor enthusiasm to claim free coins via airdrops. Analysts draw parallels between that era and today’s memecoin frenzy, where hype often overshadows due diligence. Pump.fun’s rapid growth, generating roughly $1 million daily, amplifies the stakes, as unchecked rug pulls could undermine trust in the platform.

The opacity surrounding Pump.fun’s operations adds complexity. The founders maintain low profiles, citing security concerns, with Kerler’s online presence limited to an X account under the alias @outdoteth. Corporate filings list him as a director, but details about his role are scarce beyond leading the platform’s development team. This secrecy, while protective, fuels speculation about the platform’s governance and accountability, especially given Kerler’s alleged history.

The crypto industry’s allure lies in its promise of decentralized wealth creation, but stories like Kerler’s highlight its darker side. Investors, drawn by the potential for quick gains, often overlook red flags, as seen in the 2017 ICO craze and fork airdrops, and today’s memecoin surge. Pump.fun’s success underscores the demand for accessible crypto platforms, but its ability to curb exploitative practices remains under scrutiny. For now, Kerler’s alleged past serves as a cautionary tale of how early missteps can linger in an industry where trust is paramount.