Pump.fun’s Memecoin Empire Crumbles Amid Scandals and Regulation
Pump.fun, social media’s favorite meme coin creation platform, is facing a steep decline. Daily token creation dropped sharply from a peak of 69,000 to 33,000, while active users plummeted 38%, from 261,000 to 161,000. According to local Reportthese declines come after a series of controversies and major setbacks: Financial Conduct Authority prohibit The platform cited regulatory concerns.
The platform is popular for its simple token creation process, but notorious for its lack of regulation. Users can remain anonymous, resulting in problematic and offensive content, including racist tagging, and even staging outrageous stunts such as fake suicides. After facing backlash, the platform decided to disable its live streaming feature, which only exacerbated its troubles and reduced its revenue by a third. Ahead of the ban, Polymarket reflected a growing belief that the feature’s days were numbered, predicting it had only a 22% chance of surviving this week. On Monday night, Pump.fun responded to the pressure by officially disabling the live streaming feature. However, when the UK officially banned the platform today, the response was too late.
what happened?
The controversial livestream, which was embedded directly into the token listing page, immediately caused a stir as it allowed developers to promote their tokens live. In one notable moment, a teenager showed off his token and made thousands of dollars, sparking a trading frenzy as others rushed to buy the token, further driving up its value.
Pump.fun was a key driver of cryptocurrency attention earlier this year, creating millionaires and pushing Solana’s user activity to an all-time high. However, with declining user interest, falling revenue, and increasing scrutiny, its future as a leader in the memecoin space is now uncertain.
Pump.fun’s massive SOL draws attention
In other news, Lookonchain revealed that Pump.fun recently deposited 109,587 SOL (worth $24.3 million) into Kraken, adding to its extensive trading history. The platform has generated total revenue of 1,661,078 SOL ($362 million), of which 1,472,829 SOL ($289.5 million) has been sold on decentralized exchanges and deposited into Kraken. This highlights Pump.fun’s massive revenue stream and ongoing efforts to liquidate its SOL assets, demonstrating its dominance in the memecoin market after suffering huge losses due to the ban.
