X has started a crackdown of sorts against meme coin-related trading tools and platforms and their founders.
Recently, several cryptocurrency-related X- accounts have been banned from the social media, including the account of Alon Cohen , co-founder of the well-known Solana-based meme coin launching platform Pump.fun .
Social media platform X, known as Twitter before its acquisition by Elon Musk, has apparently started a crackdown of sorts against meme coin-related trading tools and platforms and their founders.
Previously, the social media platform had already frozen accounts that were using meme trading tools and cryptocurrency bots.
Also yesterday, Monday, June 16, the accounts of Shaw Walters , leader of Eliza Labs and creator of the open source operating system ElizaOS, were suspended . Other accounts banned on Monday included those related to GMGN , Bloom Trading, BullX, and others.
Pump.fun and other affected account websites remain operational; however, the ban has raised growing concerns about the recent memecoin hype. Pump.fun’s rapid launches and rumors of automatic liquidity withdrawals, in particular, have made it a magnet for regulators.
Pump.fun Under Growing Scrutiny For Its ‘Highly Volatile’ Sales
Platform X did not provide any specific explanation or reason for banning the Solana- based meme coin account , or that of its founder.
Users have made various assumptions about the matter, with some believing that the suspension is due to the SEC's investigation into Pump.fun, while others have pointed out that the suspended platforms were likely using unofficial APIs to access X data without paying for a premium subscription.
Earlier this year, Pump.fun faced a lawsuit alleging violations of securities laws. The lawsuit alleges that the platform sold unregistered securities disguised as meme tokens and attracted nearly $500 million in commissions for marketing “highly volatile” meme coins .
Meanwhile, in a message on Telegram, the GMGN platform said it is “actively appealing” X’s decision and is working to restore the account. Addressing its users, the platform said:
“ During this time, operations continue without interruption. Our team is conducting a thorough investigation into this matter and remains in close communication with X to expedite resolution .”
Pump.fun about to launch a $1 billion token sale?
Recently, the popular meme coin launchpad Solana announced that it is planning to raise $1 billion in a token sale at a valuation of $4 billion. The community has speculated that the token launch will happen in June.
Some members have claimed that the suspension of the platform's X account would affect the token launch, as it was the main means of connecting with their users. In fact, one user posted:
“ Pump Fun’s $1 Billion Token Sale Just Got Hacked .”
However, co-founder Alon Cohen had denied any rumors of a Pump.fun token launch.
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