Solana-based memecoin launchpad Pump.Fun experienced a sharp 33% decline in revenue this week after disabling its live-streaming feature.
According to DefiLlama data, the platform’s revenue fell from $5 million to $3.6 million in just one day, marking its most significant single-day drop since March.
The decision came after a series of controversial incidents that triggered widespread backlash.
Growing criticism
The platform’s issues began earlier this month when a middle-schooler reportedly celebrated earning $30,000 in a rug pull, a scheme in which creators abruptly sell large holdings, causing token values to collapse.
The controversy escalated on Nov. 28 when a user staged a fake suicide during a live stream to promote their memecoin. Following the incident, Pump.Fun shut down live streaming capabilities, leading to a noticeable decline in user activity and earnings.
Pump.Fun, which has generated nearly $230 million in revenue since its January launch, remains a contentious player in the memecoin space. While the platform initially thrived on its unconventional approach, the recent controversies have cast a shadow over its meteoric rise.
Analysts suggest the growing negative sentiment surrounding the platform could have lasting effects, which could be further exacerbated by user fatigue.
Risks in memecoins
The recent events have reignited concerns over the risks associated with the unregulated memecoin market, which often lacks safeguards to protect users from predatory practices and harmful content.
The platform’s live-streaming feature, once a draw for its viral potential, became a double-edged sword, amplifying both its popularity and its vulnerabilities. As Pump.Fun grapples with its image crisis; competitors on platforms like Base seem poised to capitalize on the shifting tide.
Whether the platform can regain its footing in the volatile world of crypto remains uncertain, but the recent fallout illustrates the high stakes in the race to dominate the memecoin market.
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