X Suspends Multiple Crypto-Related Accounts, Including Pump.fun and Its Founder
In a significant crackdown, social media platform X has suspended over 20 accounts associated with various cryptocurrency projects. Among those affected are the account for Pump.fun, a memecoin platform, and its founder, Alon Cohen. The bans were implemented as of Monday, October 23, 2023, but the specific reasons behind these suspensions remain unclear.
Account Suspensions and X’s Response
The suspension of the Pump.fun account and its founder was part of a broader move that also impacted additional accounts linked to several crypto trading platforms, including GMGN, BullX, Bloom Trading, and the AI tool Eliza OS. According to information compiled by X user Otto, at least 19 other accounts have also been taken offline without detailed explanations from the platform.
X publicly states that it suspends accounts that violate its rules, yet it has not provided specific reasons for the recent wave of suspensions. Requests for comments from both X and Pump.fun have gone unanswered as of the publication of this article.
GMGN Appeals Suspension
One of the companies specifically impacted, GMGN, has acknowledged its suspension on Telegram. The organization stated it is "actively appealing" the decision and working towards restoring its account as soon as possible. They assured users that they are maintaining communication with X to expedite the resolution of the issue.
Possible Causes for Suspensions
Amidst the confusion, speculation has arisen among X users regarding the cause of the suspension. Multiple accounts suggest that the suspensions could be related to the use of third-party application programming interfaces (APIs). Earlier this year, X had officially banned the use of such APIs. Some industry observers have claimed that certain platforms may have used external APIs to avoid the high costs associated with X’s in-house API subscription, which reportedly starts at $60,000 per year for startups.
Despite these theories, the exact reason for the account suspensions has yet to be identified, leaving many in the crypto community concerned about the implications for their preferred platforms.
Controversies Surrounding Pump.fun
The memecoin platform Pump.fun has attracted controversy in the past. A class-action lawsuit filed in January alleged that the platform facilitated pump-and-dump schemes, a practice where the price of a cryptocurrency is artificially inflated to attract unsuspecting investors before it is sold off for profit. The lawsuit claimed that nearly every token created through Pump.fun qualifies as an unregistered security and indicated that the platform earned approximately $500 million in fees from such activities.
In response to their suspension, Braden, a user claiming to perform marketing for Pump.fun, speculated on X that the suspension might be due to “mass reporting.” This suggests potential issues surrounding user complaints and the reputation of the platform in the broader crypto community.
Community Implications
X has long been a favored platform for cryptocurrency enthusiasts and investors, serving as a vital communication tool for projects and their followers. The recent suspension of multiple crypto-related accounts raises concerns about the potential impact on these platforms’ ability to engage with their user bases effectively.
As the situation develops, both affected companies and their users are left waiting for clarity on the circumstances surrounding the account suspensions and the broader implications for the crypto community on X.
This latest incident highlights ongoing tensions in the relationship between social media platforms and the cryptocurrency sector, particularly as regulatory scrutiny continues to increase.