Pump.fun memecoin launchpad weekly revenue plunges 66% amid livestream controversy
Pump.fun memecoin launchpad weekly revenue plunges 66% amid livestream controversy
Solana-based memecoin platform Pump.fun has experienced a dramatic revenue drop following its decision to disable a controversial livestream feature. The platform, which allows users to launch and trade memecoins, generated $33.83 million in weekly revenue during November’s peak before plunging to $11.31 million in the subsequent week, a 66% decline, according to DefiLlama data.
The controversy erupted after reports surfaced of harmful content broadcast via Pump.fun’s livestreams. Users reportedly engaged in disturbing behavior, including threats of violence and self-harm, to draw attention to their tokens. The platform suspended its livestream feature on Nov. 25, citing concerns over the content and its impact on the community.
Livestream issues and platform response
The livestream incidents drew sharp criticism from community members and industry observers. In one widely publicized case, a user threatened self-harm if their token did not achieve a specific market cap. Other users reportedly made threats involving animals and schools. Calls for action prompted Pump.fun to suspend the feature indefinitely and commit to implementing proper moderation before reinstating it.
Pump.fun acknowledged in a community note that the events caused significant concern and emphasized its commitment to community safety. However, legal experts have weighed in, with some suggesting that the situation could lead to criminal investigations or regulatory scrutiny.
The controversy has cast a shadow over Pump.fun’s growth trajectory, raising questions about the platform’s ability to manage its rapid rise. While its revenue figures highlight the potential of memecoin trading, the incident underscores the need for robust safeguards in decentralized platforms to prevent misuse and ensure user safety.
As the memecoin market evolves, Pump.fun’s experience may serve as a cautionary tale for other platforms navigating the challenges of balancing innovation with accountability.
Previously, SecondLane, a private trading platform, listed 1% of Pump.fun's equity for sale.
