Pump.Fun in Solana saw its revenues plummet 33% after it turned off the feature that allowed live streaming.
According to DefiLlama data, the platform’s revenue fell from $5 million to $3.6 million in just one day, marking its most significant single-day drop since March.
After a string of controversial incidents, which sparked widespread protests, the decision was taken.
Growing criticism
The platform’s issues began earlier this month when a middle-schooler reportedly celebrated earning $30,000 in a rug pull, a scheme in which creators abruptly sell large holdings, causing token values to collapse.
On Nov. 28, a user faked suicide to promote his memecoin during a livestream. Pump.Fun immediately shut down its live-streaming capabilities following the incident. This led to a significant drop in both user activity and revenue.
Pump.Fun has been a controversial player in the memecoin market since its launch in January. Its revenue of nearly $230 millions dollars is attributed to this. The platform’s unconventional approach initially fueled its growth, but recent controversy has cast a cloud over the meteoric rise.
Analysts say that growing negativity surrounding the platform may have long-lasting effects. This could also be amplified by fatigue among users.
Memecoin: Risks and rewards
The recent events have reignited concerns over the risks associated with the unregulated memecoin market, which often lacks safeguards to protect users from predatory practices and harmful content.
The platform’s live-streaming feature, once a draw for its viral potential, became a double-edged sword, amplifying both its popularity and its vulnerabilities. While Pump.Fun struggles with its crisis of image, competitors like Base are poised to take advantage of the changing tide.
It is unclear whether the platform will be able to recover its footing within the volatile crypto world, but recent events have shown the importance of the race for the dominance of the memecoin industry.
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