Key Takeaways
- PumpFun and its founder got banned from X, along with other top crypto influencers.
- X has been a top platform that supports crypto growth, as recent events have come as a shock to many.
- The U.S. SEC continues to push hard for a PumpFun violation, as it could attract a possible $500 million fine.
Social media platform X has suspended the Solana memecoin platform PumpFun and its founder following a spree of account suspensions among top crypto influencers over the last 24 hours, creating headlines in the crypto space.
This has come as a shock for many crypto influencers on X, as this platform has had a significant impact on the growth of the crypto space for years, with notable figures in the space affected by the recent account ban saga.
PumpFun and its co-founder reported that their account was banned from X, but they did not disclose the exact cause leading to the ban, according to reports.
While many X users have questioned why PumpFun and its co-founder were suspended from X, others suggested there must have been some API violation leading to this suspension from X and other crypto accounts that were involved.
However, a recent report suggested that the U.S. SEC is planning to take legal action against PumpFun, with its founder recently arrested. This news has been circulating in the crypto space for the last few hours, with a potential fine of $500 million.
Additionally, many speculations are pointing to the fact that PumpFun is planning to launch an “AutoRug” feature, allowing memecoin creators to rug tokens after some time, while others are insisting that PumpFun has ruined the crypto market by facilitating gambling like a slot machine.
Although there may be an iota of truth in all allegations, how have recent events on PumpFun and top crypto influencers affected the price of Solana?
Market Reaction To PumpFun Saga
PumpFun has become the go-to platform for many users seeking to launch memecoins on the Solana network, as it has generated a substantial volume of liquidity for the Solana memecoin ecosystem. However, it has also come under criticism for potentially helping or promoting pump-and-dump schemes for many projects, with numerous reports of its X account.
The suspension of its account led to the withdrawal of SOL into central exchanges, resulting in a crash of several memecoins and a price drop for the Solana coin from $157 to $147.
Although the exact conclusion and restoration of the PumpFun X account are unknown, its website is still functioning, despite recent news from the U.S. SEC launching a probe into its platform and co-founder.
