- X suspends Pump.fun, Alon, and 19 others amid growing scrutiny on memecoins, API misuse, and potential platform manipulation.
- Crypto community raises concerns as X bans key trading accounts tied to meme tokens, bots, and AI tools in latest moderation sweep.
- Pump.fun faces intensified backlash following memecoin lawsuit and mass reporting claims after its X account gets taken offline.
X (formerly Twitter) has suspended Pump.fun and its founder Alon, alongside several other crypto-linked accounts. The crackdown affected at least 19 accounts tied to meme trading tools and AI platforms like GMGN, BullX, Bloom Trading, and Eliza OS. This sweeping action has sparked widespread concern across the crypto community. The exact reason behind the suspensions remains unclear. However, speculation points to violations related to platform manipulation and third-party API usage.
Besides Pump.fun, which facilitates the quick creation of memecoins, the suspensions hit major marketing and trading outlets. According to Otto, a prominent X user, the banned accounts include a mix of trading bots, crypto KOLs, and tools promoting high-frequency trading. These accounts engaged crypto audiences and promoted real-time token launches.
API Misuse or Mass Reporting?
Some users suggest that these suspensions stem from API violations. In January 2023, X prohibited the use of unauthorized APIs. Consequently, platforms seeking to avoid the hefty $60,000 annual fee for X’s official API may have risked policy breaches. Additionally, speculation has grown around the role of coordinated mass reporting. Braden, a marketer for Pump.fun, blamed mass reporting rather than any concrete policy violation.
Moreover, Pump.fun is no stranger to controversy. In January, it faced a class-action lawsuit accusing it of facilitating pump-and-dump schemes. The suit claims that each memecoin created via the platform was an unregistered security. It also alleges Pump.fun earned nearly $500 million in fees from these tokens.
Memecoin Crackdown or Overreach?
This wave of suspensions is not isolated. In recent months, X has removed accounts involved in memecoin promotion, bot trading, and artificial engagement. Hence, many believe this is part of a cleanup targeting spam and manipulation. Others argue it reflects a targeted attack on the memecoin ecosystem.
GMGN acknowledged its suspension on Telegram and confirmed it is working with X to resolve the issue. For now, the crypto community remains uncertain. Is this the beginning of tighter platform regulation or just another instance of algorithmic overreach?
Either way, the incident puts both memecoins and their promoters under increased scrutiny. Additionally, it reignites debate around the limits of decentralization in a platform-controlled environment.
