17.06.2025 20:34
X, formerly known as Twitter, initiated a sweeping crackdown on cryptocurrency-related accounts on Monday, June 17th, unexpectedly suspending Pump.fun, its co-founder Alon Cohen, and over twenty other accounts. This sudden action, taken without prior warning, has sparked significant debate and speculation within the cryptocurrency community.
The platform Pump.fun, designed for simplified memecoin creation and trading, has faced persistent criticism for allegedly facilitating pump-and-dump schemes. Its user-friendly interface, while appealing to those lacking technical expertise, has inadvertently lowered the barrier to entry for malicious actors seeking to manipulate markets for personal gain. This ease of use has been cited as a key factor enabling the creation and proliferation of worthless tokens.
Many believe the suspensions are linked to accusations of "liquidity harvesting," a form of insider trading, perpetrated through Pump.fun. This theory stems from the platform's history of controversy, including a January 2024 class-action lawsuit alleging Pump.fun earned nearly half a billion dollars in fees by enabling the creation and trading of unregistered securities, effectively facilitating fraudulent activities. The plaintiffs in this suit claimed Pump.fun allowed the creation of tokens devoid of intrinsic value, leaving unsuspecting investors with substantial losses.
The lack of transparency surrounding the suspensions, coupled with the absence of official statements from X or Pump.fun, has fueled further uncertainty. Both Pump.fun and Cohen's X accounts now display the standard suspension notice, citing violations of X's terms of service, but offering no specific details. This silence only amplifies concerns regarding X's moderation policies, the future of memecoin projects on the platform, and the broader implications for cryptocurrency regulation on social media. The incident raises serious questions about accountability and the responsibility of social media companies in policing potentially fraudulent activities within their ecosystems.
