Pump.fun, a social media favourite platform for creating memecoins, is facing a sharp downturn. Daily token creations have nosedived from a peak of 69,000 to just 33,000, while active users have plummeted by 38%, dropping from 261,000 to 161,000. As per local reports, these declines follow a string of controversies and a significant setback: the UK’s Financial Conduct Authority banned the platform, citing regulatory concerns.
The platform, popular for its easy token creation process, became notorious for its lack of oversight. Users could remain anonymous, leading to problematic and offensive content, including racist tokens and even staged stunts like a fake suicide that caused public outrage. The platform’s decision to disable its live-streaming feature—following the backlash—only exacerbated its troubles, slashing its revenue by a third. Before the ban, Polymarket reflected a growing belief that the feature’s days were numbered, with predictions giving it just a 22% chance of surviving the week. By Monday evening, Pump.fun responded to the pressure and officially disabled the live stream functionality. However, it was too late to react as the UK officially banned the platform today.
What Happened?
The controversial live streaming embedded directly into coin listing pages, became an instant hit as it allowed developers to promote their tokens live. One standout moment was when a teenager showcased his token and earned thousands of dollars, causing a trading frenzy as others rushed to buy the coin, pushing its value even higher.
Pump.fun had been a key driver of crypto attention earlier this year, minting millionaires and boosting Solana’s user activity to record highs. However, with declining user interest, falling revenues, and mounting scrutiny, its future as a leader in the memecoin space is now uncertain.
Pump.fun’s Massive SOL Moves Spark Attention
In other news, Lookonchain revealed that Pump.fun recently deposited 109,587 SOL (worth $24.3 million) to Kraken, adding to its extensive transaction history. The platform has generated a total revenue of 1,661,078 SOL ($362 million), of which 1,472,829 SOL ($289.5 million) has been sold on decentralized exchanges and deposited to Kraken. After suffering massive losses with the ban, this highlights Pump.fun’s massive revenue streams and ongoing efforts to liquidate its SOL holdings, signalling its dominant position in the memecoin market.
