X suspended Pump.fun and its co-founder’s accounts without clear explanation, part of a broader crypto account ban wave.
Speculation surrounds the suspensions, with some believing third-party API use may be the cause, but X has not confirmed this.
Pump.fun faces legal issues related to pump-and-dump schemes, and its suspension complicates communication with users.
X has suspended the accounts of Pump.fun, a crypto memecoin platform, and its co-founder, Alon Cohen, as noted by Sully. This move is part of a broader wave of suspensions targeting crypto-related accounts, which raised questions about the reasons behind these actions.
Mass Suspension Hits Crypto Community
On Monday, X suspended Pump.fun’s account and Cohen’s personal account without offering a specific explanation. The platform simply stated that accounts were suspended for violating X’s rules. In total, over 20 crypto-related accounts were suspended, including those linked to GMGN, BullX, Bloom Trading, and Eliza OS.
he accounts of these platforms were also affected by the suspension blitz. X did not offer any additional information, and the crypto world imagines what is behind this. This action is perceived by many as a major disruption, since X has traditionally been a popular platform to exchange ideas and report updates on crypto.
The controversy of the suspensions revolves around the third-party application programming interfaces (APIs). In January 2023, X had prohibited the third-party APIs use, which made some people believe that these accounts potentially did not obey this order.
It’s thought that certain platforms may have used external APIs to bypass the high costs of X’s own API tool, which charges $60,000 annually for startups.
However, this remains speculative. X has not confirmed whether the API use was the main reason behind the suspensions. The lack of transparency has caused frustration among users and crypto platforms, as many rely on X for communication with their communities.
Pump.fun Faces Legal Issues
Apart from the suspension, Pump.fun has been at the center of legal controversy. In January, the platform was sued for allegedly helping to create pump-and-dump schemes involving memecoins. The class-action lawsuit claims that Pump.fun facilitated the creation of unregistered securities through the memecoins it helped develop. The lawsuit also stated that Pump.fun made nearly $500 million in fees from these activities.
The suspension of the platform can also complicate its current court battles because the platform uses social media to interact with users and the generation. The fact that both the site and the co-founder account of Pump.fun were suspended has also cast doubt in the minds of many whether this move has any relation to legal tussles that the site is facing.
GMGN, one of the suspended platforms, has responded by stating that it is “actively appealing” the suspension. The platform is working with X to restore its account and hopes to resolve the matter swiftly. GMGN has also stated that it remains in close communication with X to expedite the process. Following these suspensions, there are still numerous questions that are left by the crypto community on how X handles crypto accounts. The more accounts will be banned, the more users fear that in the future, they will not be able to discuss crypto on X.
