Michaela
Pump.fun, a decentralized meme coin launchpad built on Solana, has drawn sharp criticism after generating $741 million in fees from the sale of over 4.1 million SOL tokens. While the platform’s rapid growth has attracted headlines, its role in enabling a wave of high-risk speculative coins, some linked to disturbing content and live stream incidents, has prompted growing concern among critics and industry observers.
Crypto influencer Crypto Bitlord publicly criticized meme coin launchpad Pump.fun in a recent post on X, citing data from blockchain analytics platform LookOnChain. The influencer accused Pump.fun of collecting millions of dollars in fees and alleged that scams tied to its activity have drained over $20 billion from the ecosystem.
“The application is a disease responsible for mass killings and suicides on livestream,” Crypto Bitlord wrote. “Deleting [Pump.fun] from the internet will be a net positive for the entire ecosystem,” they added.
LookOnChain reports that since May 2024, Pump.fun has generated roughly $741 million in fees by selling about 4.1 million SOL tokens at an average price of nearly $180. Of this, 3.84 million SOL, valued at $699 million, was transferred directly to the Kraken exchange, while an additional 264,373 SOL was converted into $41.64 million in USDC, spotlighting the significant financial extraction from users.
The crypto community has shown a mixed response to Crypto Bitlord’s allegations. While some users echoed his concerns, calling to “cancel Pump.fun”, others appeared less convinced, reflecting a broader divide in sentiment surrounding the platform.
One user noted that the platform had “at least” maintained transparency regarding its fees, drawing comparisons to centralized exchanges like Binance and Coinbase, and questioning how many billions those platforms generate each month.
The allegations follow closely on the heels of a wave of account suspensions linked to Pump.fun.
Pump.fun co-founder Alon Cohen and Eliza Labs’ Shaw Walters are among the individuals whose accounts have been suspended, alongside numerous other crypto-related profiles. Reports indicate that at least 19 accounts have been deactivated.
The suspension of multiple accounts occurs at a pivotal time, ahead of Pump.fun’s anticipated $1 billion token sale. The removal of the platform’s official X account, which boasted over 457,000 followers, risks undermining the launch by severing a key communication avenue.
Speculation has emerged that the account suspensions may be linked to possible breaches involving unauthorized use of API access.
Read More
- Pump.fun Under Fire as Livestreams are Exploited for Disturbing Content
- X Account of Pump.fun Hacked, Promoted Fake ‘PUMP’ Token
- Pump.fun Sued Over Investor Losses and Alleged Scams
Michaela 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 Magazine and The Shib Daily are the official media and publications 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.
