The platform allows users to create and launch memecoins . It experienced a dramatic drop in revenue, going from $33 million in the week of Nov. 18-24 to just $11 million the following week.
That’s a 66% drop, and it all started after some livestream users began broadcasting disturbing content.
The Rise and Fall of Pump.fun’s Revenue
Pump.fun’s revenue had been on the up and up in November. From Nov. 18th to Nov. 24th, the platform earned $33.83 million, marking a huge 60% increase compared to the week before and a nearly 400% increase from the beginning of the month. But by Nov. 25 to Dec. 1, things took a turn for the worse. Revenue dropped to just $11.31 million, signaling a sharp reversal.
The trouble started when some livestream users began threatening harmful acts in an attempt to make their new tokens “pump” in value. On Nov. 25th, a safety manager from Pudgy Penguins, Beau, reported a disturbing incident where a user threatened suicide unless their coin hit a certain market cap. Other users also reported violent threats, including one person saying they would shoot a dog and another threatening to harm others.
Source: DeFiLlama
These incidents raised major red flags, and social media users urged Pump.fun to take action. In response, the platform disabled its livestream feature. Pump.fun acknowledged the troubling content in a community message and announced it would pause live streams indefinitely while they worked on improving moderation.
The Fallout
The decision to disable live streams impacted Pump.fun’s revenue. Experts have weighed in on the situation, with some suggesting that it could lead to serious legal trouble. Yuriy Brisov, a partner at Digital and Analogue Partners, called the situation a “legitimate reason for a criminal investigation and civil lawsuits.”
This week on pump fun:
– Man pretending to be a dog
– Man sitting on a toilet and refusing to move until coin hits 25 million.
– Man threatening to shoot his dog if the coin doesn’t hit 1 million.
– Man threatening to hang himself if the coin doesn’t hit 1 million.
– Young…— T.M.A (@Tma_420) November 25, 2024
Mikko Ohtamaa, a co-founder of Trading Strategy, also warned that Pump.fun might face a quick shutdown or could be forced to shut down years later once regulators fully understand the situation.
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