Originally published on: December 01, 2024
Pump.fun, the Solana memecoin launchpad, experienced a significant drop in weekly revenue following the decision to disable its livestream feature due to reports of harmful content being broadcasted.
The memecoin generator initially saw a surge in revenue at the beginning of November, reaching its peak in the fourth week. Data from DefiLlama revealed that from Nov. 18 to Nov. 24, Pump.fun generated $33.83 million in revenue for the week, marking a 60% increase from the previous week and nearly a 400% increase from the start of the month.
Unfortunately, the platform’s success was short-lived as revenue plummeted in the following week. Data from DefiLlama showed that from Nov. 25 to Dec. 1, Pump.fun’s revenue dropped to $11.31 million, representing a significant 66% decrease from the previous week.
This decline in revenue came after community members raised concerns about harmful acts being performed on the livestream feature. Reports surfaced of users threatening violent and disturbing actions in an attempt to increase the value of their tokens.
In response to these alarming incidents, Pump.fun made the decision to disable its livestream feature indefinitely. The platform issued a community note on Nov. 25, acknowledging the troubling events on the streams and expressing a commitment to properly moderating content before reinstating the feature.
Experts in the industry have raised questions about the legality and consequences of such actions. Yuriy Brisov from Digital and Analogue Partners suggested that the controversy surrounding Pump.fun could lead to criminal investigations and civil lawsuits. Additionally, Mikko Ohtamaa, co-founder of Trading Strategy, warned that the platform may face regulatory action in the future.
The incident highlights the importance of maintaining safe and responsible online environments within the cryptocurrency community. As Pump.fun works to address these challenges, the future of the platform remains uncertain in the face of mounting scrutiny.
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