The crypto community suspects that the Solana memecoin sector could be in serious legal trouble. In this regard, the Securities and Exchange Commission (SEC) would be preparing a lawsuit against the Pump.fun platform. With this latter, anyone can easily and quickly create tokens with low budgets.
Speculations about a possible lawsuit against the platform have intensified following the blocking of Pump.fun's account on the social network X. Simultaneously, the account of its founder, Alon Cohen, also received the same sanction from Elon Musk's network.
According to community suspicions, it is only a matter of time before this platform faces greater scrutiny from regulators. Pump.fun is one of the most controversial projects and is accused of massively incentivizing pump-and-dump frauds and other types of scams against investors. Even within the crypto community, constant criticisms are raised against it.
The controversy surrounding the X accounts of the meme token creator occurs amid significant efforts by the platform to raise $1 billion. So far, the X management has not provided details about the reasons for suspending those accounts. Only a standard message alleging rule violations is known so far.
Solana's memecoin sector loses momentum
Beyond the potential legal issues that the Solana memecoin sector may face, there are also market setbacks. Since 2024, Pump.fun has been a key player behind meme coin trading, but things seem to be changing in recent weeks.
The increase in scam tokens drives people away from this issuer. This is particularly concerning given that the chances of being scammed are enormous compared to other new token issuance platforms. In this regard, in recent days, the BNB Chain meme coin sector has surpassed Solana. This raises significant concerns about a drought in trading volume on the latter.
Creating a memecoin on BNB Chain is more complicated in terms of scrutiny and investment. This minimizes the chances of anyone looking for quick profits appropriating the capital of individuals through fraudulent means. This could be a formidable blow to Pump.fun, which has received large sums in the form of fees for its services.
However, regulators could once again have their eyes on it. It is important to mention that this is one of the platforms that escaped the SEC's Gensler-era crackdown. However, it would now have to undergo scrutiny. In any case, so far, it is all speculation.
The memecoin sector continues to lose ground due to multiple factors such as market conditions. Despite the suspension of accounts on X, the Pump.fun platform continues to operate normally.