Solana-based memecoin launchpad Pump.Fun has recently faced a significant setback, experiencing a sharp 33% decline in revenue after disabling its live-streaming feature. According to DefiLlama data, the platform’s revenue plummeted from $5 million to $3.6 million in just one day, marking its most substantial single-day drop since March.
The decision to disable the live-streaming feature came after a series of controversial incidents that sparked widespread backlash. The platform’s troubles began earlier this month when a middle-schooler reportedly celebrated earning $30,000 in a rug pull, a deceptive scheme where creators sell off large holdings, causing the value of tokens to collapse. The controversy escalated on Nov. 28 when a user staged a fake suicide during a live stream to promote their memecoin. Following this incident, Pump.Fun made the decision to shut down live streaming capabilities, resulting in a noticeable decline in user activity and earnings.
Despite generating nearly $230 million in revenue since its launch in January, Pump.Fun remains a contentious player in the memecoin space. While the platform initially garnered attention for its unconventional approach, the recent controversies have overshadowed its rapid growth. Analysts suggest that the negative sentiment surrounding the platform could have lasting effects, particularly as user fatigue sets in.
These recent events have reignited concerns about the risks associated with the unregulated memecoin market, which often lacks protections against predatory practices and harmful content. Pump.Fun’s live-streaming feature, once a key attraction for its viral potential, ultimately became a liability, exposing the platform to both popularity and vulnerabilities. As Pump.Fun grapples with its image crisis, competitors on platforms like Base are poised to take advantage of the shifting landscape.
The future of Pump.Fun in the volatile world of crypto remains uncertain. The recent fallout serves as a reminder of the high stakes in the race to dominate the memecoin market and the importance of maintaining trust and integrity in the rapidly evolving crypto space.