Pump.fun, a popular Solana memecoin launchpad, has seen its weekly revenue drop sharply. The decline followed the disabling of its livestream feature due to controversial content.
The platform generated revenue had been on the rise in early November. According to data from DefiLlama, it reached a peak of $33.83 million during the week of November 18–24. This marked a 60% increase compared to the previous week and a nearly 400% rise from the start of the month.
However, just a week later, from November 25 to December 1, revenue fell dramatically. DefiLlama reported that Pump.fun generated only $11.31 million for the week. This represents a 66% drop from its peak.
Livestream Feature Sparks Controversy
The revenue decline followed a wave of criticism directed at Pump.fun’s livestream feature. Some users began broadcasting harmful and disturbing content to draw attention to their tokens.
One notable incident occurred on November 25 when Beau, the safety project manager at Pudgy Penguins, reported a troubling livestream. A user was allegedly threatening to harm themselves if their token did not reach a certain market cap. Beau called on Pump.fun to intervene and disable the stream immediately.
Hey @pumpdotfun there is currently someone using your livestreams to threaten to hang themselves if the coin does not reach a set marketcap. Absolutely heinous and It needs to come down + see if you can get them help. Shut down the livestream feature. This is out of control.
— Beau (@beausecurity) November 25, 2024
Other social media users also reported alarming incidents. One person claimed a user threatened to harm a dog during a livestream. Another said someone was making threats about committing violent acts at a school.
The rise in such harmful content caused widespread outrage. Many community members demanded action from Pump.fun to prevent further incidents.
Pump.fun Responds
In response to the backlash, Pump.fun acted swiftly. On November 25, the platform announced it was disabling the livestream feature indefinitely.
In a community note, the Pump.fun team acknowledged the seriousness of the situation. They stated that the disturbing events on the livestreams had “caused concern.” They decided to pause the feature until they could ensure better moderation.
This move was praised by some but came at a significant cost to the platform’s revenue.
Broader Implications
The controversy has raised questions about Pump.fun’s future. Mikko Ohtamaa, co-founder of Trading Strategy, commented on the situation via X (formerly Twitter). He warned that Pump.fun could face police action or regulatory shutdowns in the future if issues persist.
On Pump dot fun streams getting out of a hand, Pump dot fun has two options: Pump dot fun keeps no moderation, true to the nature of crypto anarchisim, gets closed down fast by police Pump dot fun closes the streams, and gets closed down later after regulators wrap their… pic.twitter.com/NOII1tGVwF
— Mikko Ohtamaa (@moo9000) November 25, 2024
Pump.fun’s livestream feature had been a unique aspect of its platform, allowing creators to promote their memecoins in real time. However, the lack of proper safeguards led to its misuse, ultimately impacting the platform’s reputation and earnings.
What’s Next for Pump.fun?
With the livestream feature offline, Pump.fun must rebuild trust within its community. Strengthening content moderation and introducing robust safety measures will be crucial for the platform’s survival.
The sharp revenue drop underscores the risks associated with unchecked user-generated content. While Pump.fun has experienced rapid growth, the recent events serve as a reminder of the importance of balancing innovation with responsibility.
As Pump.fun works to address these challenges, the crypto world will be watching closely to see how the platform navigates this difficult period.
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