Pump.fun is a widely used live streaming platform that perfectly illustrates why cryptocurrency regulation is needed. Many users predict a 97% chance that the platform will be shut down. Users are clamoring for a shutdown because if the platform cannot maintain basic security features, it will not be able to conduct a serious business like cryptocurrency.
Once a tool for developers to promote their projects, it has become the focus of growing controversy, with disturbing incidents and financial fraud taking center stage.
Let’s take a look at what’s causing such widespread outrage.
Live streaming becomes a security threat
Pump.fun’s livestream feature, originally designed to help developers draw attention to their tokens, has now raised serious concerns. Recently, a user livestreamed disturbing self-harm threats, saying they would hurt themselves if their token didn’t reach a market cap of $25 million. Unfortunately, this was not an isolated incident. Other livestreams have shown users making violent threats about the performance of their tokens, some even threatening to harm pets or people.
This has caused many in the crypto space to speak out. Beau, a security manager at Pudgy Penguins, urged immediate action: "Turn off the live feature. This is getting out of control." Calls for change have grown louder, with many questioning whether the platform can maintain a safe environment.
Fraud Plaguing the Platform
Pump.fun has also become a hotbed for scams. A case involving a student who created the $QUANT meme coin and scammed $30,000 highlighted the risks. The student was eventually doxed, drawing attention to the vulnerability of investors on the platform.
Community divided over solution
The Pump.fun community is divided on how to handle these issues. Some have suggested disabling the live streaming feature entirely, while others believe stricter moderation could solve the problem. Eddie, a legal intern, criticized the platform for poor moderation, noting that the live streaming content is not only "boring" but also "conceptually lazy."
Encryption Impact
Despite these controversies, Pump.fun remains in good financial shape. According to DefiLlama, the company has earned $215 million in revenue and issued 3.8 million meme coins since March 2024. But as the platform continues to grow, it faces a difficult challenge: how to scale safely while protecting its users and reputation.
The impact of these developments is far from over, and as the market reacts, the next chapter for Pump.fun is in the works.
