X Pulls Plug on Account Enabling Instant Memecoin Creation, Then Restores it

In a dramatic turn of events, X, the social media platform owned by tech magnate Elon Musk, suspended an account called “makenowmeme,” only to reinstate it a few hours later.

The account, with over 15,000 followers, gained popularity for allowing users to create their own memecoins on the Solana blockchain with a simple X post. The “makenowmeme” system functioned by providing a specific format for posts on X.

Users include a $ticker with the desired token name, a description of the coin, and a tag for “@makenowmeme.” An optional image or video could also be attached.

Once enough users bought into the memecoin through a bonding curve, liquidity was deposited on the decentralized exchange Raydium (built on Solana) and subsequently burned. This mechanism mirrored the one employed by the popular Solana memecoin issuance platform pump.fun, which has accumulated over $80 million in revenue as of Aug. 1, according to DefiLlama.

The “makenowmeme” platform boasted a top token called “Dogs” with a market capitalization reaching $184,000 at its peak. The platform even offered an airdrop of MNM tokens upon memecoins achieving specific market cap and volume milestones.

While the ease of creating memecoins attracted a significant user base, concerns arose regarding potential manipulation and security risks. Lookonchain, an on-chain analytics platform, reported instances of substantial profits made by traders exploiting the system. One such instance involved a trader profiting over $800,000 within an hour by purchasing and selling a memecoin called CTO.

X’s initial decision to suspend “makenowmeme” aligned with a broader trend of increased scrutiny towards memecoins. These digital tokens, often inspired by internet jokes and trends, have experienced significant volatility in recent months. While some memecoins have achieved remarkable success (Shiba Inu being a prime example), concerns persist regarding their inherent lack of utility and potential for market manipulation.

But, a few hours after the account was suspended on X, the story took another turn. The “makenowmeme” team announced its reinstatement on the microblogging site, stating they are “working with X on a proper solution.” The minting functionality through X posts will be paused for the time being, but users can still mint and trade their tokens on the “makenow.meme” website.

The team recently expressed gratitude on X for the platform’s support and for the surge in activity, jokingly calling it a ‘literal hug of death.’ They also mentioned the return of the ‘tweet to mint’ functionality, but with adjustments by developers.”

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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