Original | Odaily Planet Daily ( @OdailyChina )
Author: Azuma ( @azuma_eth )
In the early morning of June 17th, Beijing time, the official account of pump.fun and the personal account of its founder Alon Cohen were suddenly banned by X. This is another large-scale ban on the meme industry by X after X banned GMGN and several KOLs last week.
There are many different opinions about the reasons for the ban. For example, some people speculate that it is because these meme platforms violated Xs API usage regulations and touched Xs cake (Xs official API fee for enterprises is as high as US$42,000 per month), but the specific reason is still inconclusive.
It is worth mentioning that there are currently a lot of rumors circulating on X about pump.fun being sued by regulators or its founder being arrested, but after verification, there is no reliable source for the time being, and most of the content is actually photoshopped for the purpose of attracting attention.
Community statistics show that the current projects and personal accounts that have been banned by X are as follows.
pump.fun associated accounts:
@pumpdotfun
@ a1lon9
GMGN associated accounts:
@gmgnai
@haze0x ( Founder)
@arthur_gmgn (Co-founder)
@gmgnaiJapanese
@ivyflame (Team Member)
@Ga__ke (associated with KOL)
@brc20niubi (related KOL)
@Wolfy_XBT (Associated KOL)
@0xcryptowizard (Associated KOL)
Bloom connected accounts:
@BloomTrading
@imBFFF00 (Team member)
@nftraian (Team Member)
@CookerFlips (Partner)
@vibed333 (associated KOL)
In addition, several accounts including the Meme platform BullX ( @bullx_io), AI Meme project ElizaOS (@ElizaOS) and its founder Shaw ( @shawmakesmagic) were also banned.
Will pump.fun, which is about to issue a token, be affected?
Compared with other banned accounts, the ban of pump.fun will undoubtedly have a greater impact. The first reason is that pump.fun has greater market attention and Meme market influence. The second reason is that pump.fun is currently preparing for a highly anticipated coin offering, intending to raise funds from the entire industry at a valuation of billions of dollars.
Odaily Note: Regarding the coin issuance process of pump.fun, we reported on June 4 in Valuation of 5 billion US dollars, VCs and retail investors take over at the same price? Meme engine pump.fun issues coins to save itself .
The rumor about pump.funs upcoming token issuance first originated from Blockworks. According to sources, pump.fun plans to raise $1 billion through IC0 with a valuation of $4 billion. The source added that the token sale will be divided into private and public rounds, but it is impossible to confirm when the token will be launched or whether it will be issued on the pump.fun platform.
Later, Velocity Capital investor DeFi Cheetah said that the rumors about pump.funs coin issuance that he heard from some unconfirmed private channels included: there will be no airdrop, but a whitelist will be set for the public sale; the financing target for the public sale is US$800 million, and the valuation is US$5 billion; the VC will also have a quota of US$200 million, and the valuation is also US$5 billion; the public sale will be conducted in most mainstream CEXs, and these exchanges are preparing for this.
On June 10, Binance Futures officially announced that it would rename PumpBTC (PUMP), which has already launched a perpetual contract, to PUMPBTC. The community speculated that this move was to leave the PUMP token logo to pump.fun, which seemed to confirm the rumors that pump.fun would be publicly sold through major CEXs.
On June 16, Aevo announced the launch of pre-market trading of pump.fun (PUMP). After the launch, PUMPs pre-market valuation once surged to US$7 billion, but with the closure of pump.fun, it fell back to around US$5.85 billion. However, the trading volume of Aevos pre-market trading market is limited, so it cannot fully represent the true valuation of PUMP.
However, just when everything seemed to be going smoothly, the sudden ban this morning dealt a heavy blow to pump.fun. After all, the lack of a credible official voice channel at the most critical time node of coin issuance will inevitably cause inconvenience to the development of various tasks. In addition, the strong FUD sentiment in the current market will also damage pump.funs fundraising appeal. Therefore, if pump.fun cannot be unblocked quickly, it is not ruled out that pump.fun will choose to temporarily shelve the coin issuance process.
But taking a step back, choosing to shelve it is actually taking another bottle of poison. From the perspective of the market environment, the Meme market is continuing to cool down. The longer the time is delayed, the more unfavorable it will be for pump.funs revenue performance, which will fundamentally limit its valuation expectations.
The world has been suffering for a long time.
Interestingly, looking around the market discussions, the community seems to be more gloating about the closure of pump.fun.
There are many reasons for this. First, the market does not approve of the fundraising that pump.fun intends to promote. They believe that pump.fun, which has always been ugly in its eating habits (all the SOL profits are dumped), is raising funds on such a large scale at such a valuation, which can almost drain the remaining liquidity in the market and reap the entire bull market in one wave. Second, the Meme boom promoted by pump.fun has objectively also brought about many chaos. A large number of users who have lost money due to Meme have long been hostile to pump.fun.
Synnax co-founder @ DarioC px said: “If this platform, which has spawned a large number of scams, finally goes bankrupt, the next round of cryptocurrency alt season may be coming.”
Developer @ Simba_crpt said: pump.fun has been officially banned. There will be no more secret launches, and no more people will get rich overnight. This will completely change the fate of the Meme market.
Obviously, the world has suffered from pump.fun for a long time . Now, seeing that pump.fun is about to face a dilemma, many users feel a sense of great revenge.
Personally, although I dont have too many positive or negative emotions towards pump.fun, I do not like the fundraising activity that pump.fun is preparing (if the details are really as rumored), so I would be more happy to see pump.fun lower its valuation and fundraising targets, but how the situation will develop in the end depends on what choice pump.fun will make.
