X Suspends Numerous Crypto Accounts, Including Meme Coin Launchpad Pump.fun
On Monday, X suspended several high-profile cryptocurrency accounts operating on its platform, including Solana-based meme coin launchpad Pump.fun, without immediately explaining the reasons.
Affected entities featured in the suspension notices range from trading tools like BullX and GMGN to AI agent platform Eliza OS, along with co-founders of some impacted businesses like Alon Cohen, Pump.fun’s co-founder, and founder Shaw Walters of ElizaOS. While X provided standard violation notices, no specific reasons were given for these actions. GMGN stated it is appealing the decision and working towards restoration.
Amidst this crackdown, users have floated a variety of speculations. Some suggested the suspended platforms might have used unofficial application programming interfaces (APIs) to scrape X data without utilizing the platform’s premium developer tools. Separate rumors pointed to a circulated fake post alleging SEC investigation against Pump.fun, which went unverified.
Beyond API speculation, escalating concerns within the Solana meme coin ecosystem also fueled some hypotheses. This ecosystem faces criticism due to prevalent “rug pulls,” a lack of regulatory oversight, and increasingly extreme promotional stunts by projects. Live streams hosted partly through platforms like Pump.fun promoting meme coins have been particularly controversial. Several broadcasters on these streams allegedly threatened self-harm, abuse others, or commit suicide if their associated tokens reached specific market milestones.
These dark promotional tactics reached concerning levels. For instance, a developer reportedly faked a hanging incident to boost a token, leading Pump.fun to ban such live streams. An April stunt by Zerebro creator Jeffy Yu involved faking his suicide, posting an obituary, before being found hiding at his parents’ home.
The underlying cause for the recent suspensions, however, remains unclear, and the affected parties continue to operate, with some like GMGN implementing damage control measures while awaiting resolution.
