Why Did X Suspend Pump.fun and Its Founder Account?
Highlights
- Pump.fun X account suspension could be linked to peculations suggest links to bot infrastructure, trading tools, or third-party API usage.
- The account suspension has also fueled speculation about potential SEC involvement or operational illegality.
- Pump.fun's role in facilitating the Solana memecoin craze has drawn mixed reactions from community.
Pump.fun, a Solana-based memecoin launchpad, found its account suspended on Elon Musk’s X platform, along with its founder, Alon Cohen. There was no specific reason provided by X apart from a standard disclosure for rules violation. Interestingly, apart from these two accounts, the X platform has suspended accounts for other meme coin services.
Is Memecoin Platform Pump.fun Likely to Face Scrutiny?
The recent suspension of accounts for the Solana-based memecoin platform has raised speculation over the potential involvement by the Securities and Exchange Commission (SEC) to allegations of illegality in Pump.fun’s operations. Despite the controversy, the primary platform remains fully functional for now. Interestingly, the recent suspension comes within two weeks of the Solana meme coin platform raising $1 billion
Some of the other accounts suspended include those connected to GMGN, Bloom Trading, and BullX. Moreover, crypto Twitter predicts that the suspension comes as a majority of the accounts were linked to bot infrastructure or trading tools. Furthermore, they believe that the recent crackdown could be part of an internal enforcement operation by the X platform.
Several X users have speculated that the account suspensions are linked to the use of third-party application programming interfaces (APIs), which X prohibited in January 2023. Some also suggested that the platforms relied on external APIs to avoid the high costs of X’s in-house API, which has an annual subscription of $60,000.
In an update on Telegram, GMGN confirmed its X account suspensions and said that it was “actively appealing the decision and working to restore the account as soon as possible.”
Previous Concerns of Solana Meme Coin Platform
While Solana blockchain was at the forefront of a massive memecoin frenzy since 2024, Pump.fun has faced criticism for enabling scam tokens and facilitating pump-and-dump schemes. As a result, Binance Chain surpassed Solana recently in meme coin trading volume.
The platform has also sparked mixed reactions for simplifying the creation of memecoins. In January, Pump.fun, hosting some of the top meme coins, faced a proposed class-action lawsuit accusing the platform of offering and selling “highly volatile” unregistered securities, allegedly amassing nearly $500 million in fees.
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