Solana’s meme coin platform Pump.fun is facing a potential ecosystem shutdown. The potential shutdown of Pump.fun has created major concerns within the Solana ecosystem.
On-chain analytics platform Arkham’s lawyer Preston Byrne gave the first warning that Pump.fun could be shut down in the near future. Byrne described the site as amateurishly designed and full of legal flaws. He also noted that it could cause potential legal problems due to its UK-based nature:
“Pump.fun makes a lot of mistakes in terms of social media law. There is no terms of service, no DMCA registration, no copyright policy, and no privacy policy. These are careless and serious oversights, assuming they are based in the US. I don’t know if the site plans to be a long-term entity.”
Byrne noticed that Pump.fun was based in the UK after a user commented, and emphasized that this could lead to bigger problems. The UK has introduced strict regulations on the cryptocurrency sector and attracted attention with laws aimed at protecting users. In this context, Pump.fun’s content is in great conflict with UK laws.
The live streaming feature on Pump.fun has been the subject of many controversial and notable incidents recently. Users started using live streaming to promote their meme coins and increase their value, which caused a huge backlash on the platform. Following this backlash, Pump.fun decided to disable the live streaming feature on November 25, indicating that the platform is starting to take careful steps.
