Pump.fun, a well-known memecoin launchpad operating on the Solana network, has witnessed a significant downward shift in its weekly revenue.
The numbers fell dramatically from $33 million in late November to a mere $11 million just a week later.
Revenue Trends
For most of November, the platform saw a consistent upward trend in revenue, hitting a peak of $33.83 million between November 18 and November 24, according to data from DefiLlama.
This impressive figure represented a staggering week-on-week increase of 60% and a nearly 400% rise compared to the start of the month.
Controversial Livestream Incident
However, this upward trajectory was abruptly interrupted due to troubling incidents that occurred during a livestream session, which drew widespread criticism for airing inappropriate content.
As concerns mounted within the community, users called on Pump.fun to suspend the livestream feature immediately, pointing to alarming behavior from some users attempting to promote their tokens in disturbing ways.
On November 25, a safety project manager from Pudgy Penguins alerted the community to an alarming event.
A user threatened self-harm during a livestream, demanding that their cryptocurrency reach a specific market cap.
The manager took to social media, urging Pump.fun to step in and provide assistance.
Echoing these sentiments, other viewers reported further incidents in which individuals made concerning threats against audiences, including distressing mentions of violence involving animals and schools.
Company Response and Future Implications
In response to this wave of distressing reports, Pump.fun’s team chose to suspend the livestream feature indefinitely.
In a message to the community released on the same day, they acknowledged the serious concerns raised by users, emphasizing the need for better moderation before even considering a return of the livestream option.
Industry experts are now weighing the fallout from this incident.
Many have suggested that the situation could lead to criminal investigations or civil lawsuits.
Some argued that law enforcement might get involved, potentially resulting in either a swift shutdown of Pump.fun or prolonged regulatory scrutiny as authorities work to understand the full scope of these troubling events.
Source: Cointelegraph
