Originally published on: December 01, 2024
Pump.fun, the Solana memecoin launchpad, experienced a sharp decline in weekly revenue after disabling its livestream feature due to reports of harmful content being broadcasted.
At the beginning of November, Pump.fun’s revenue was on the rise, peaking in the fourth week with an impressive $33.83 million generated from Nov. 18-24. This marked a 60% increase from the previous week and nearly a 400% increase from the start of the month.
However, from Nov. 25 to Dec. 1, the platform saw a significant drop in revenue, recording only $11.31 million for the week, representing a 66% decrease from the previous week.
The decrease in revenue followed concerns raised by community members regarding harmful acts being performed on the livestream feature. Reports of users threatening violent actions to boost their new tokens prompted calls for Pump.fun to disable the feature.
In response to the disturbing content, Pump.fun decided to temporarily suspend its livestream feature. In a statement to the community, the platform acknowledged the concerns raised and committed to properly moderating the streams before reinstating the feature.
Experts believe that the controversy surrounding Pump.fun could lead to criminal investigations and civil lawsuits. Some suggest that the platform may face closure either by authorities in the near future or regulators in years to come.
The recent events at Pump.fun serve as a cautionary tale for platforms operating in the cryptocurrency space, highlighting the importance of robust content moderation and user safety measures.
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