Solana-based memecoin launch platform Pump.Fun suffered a sharp 33% drop in revenue this week after disabling its livestream feature.
According to data from DefiLlama, the platform’s revenue fell from $5 million to $3.6 million in just one day, marking the biggest single-day drop since March.
The decision came after a series of controversial incidents that sparked widespread backlash.
Growing criticism
The platform’s troubles began earlier this month when a high school student reportedly celebrated making $30,000 from a carpet pull, a scheme in which creators abruptly sell off large assets, causing token values to collapse.
The controversy escalated on November 28 when a user committed a fake suicide during a livestream to promote his memecoin. Following the incident, Pump.Fun shut down its live streaming capabilities, leading to a noticeable drop in user activity and revenue.
Pump.Fun, which has generated nearly $230 million in revenue since launching in January, remains a controversial player in the memecoin space. Although the platform initially flourished thanks to its unconventional approach, recent controversies have cast a shadow over its meteoric rise.
Analysts suggest that the growing negative sentiment around the platform could have lasting consequences, which could be further exacerbated by user fatigue.
Risks in memecoins
Recent events have renewed concerns about the risks associated with the unregulated memecoin market, which often lacks safeguards to protect users from predatory practices and harmful content.
The platform’s livestream 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 image crisis; competitors on platforms like Base appear poised to capitalize on the changing tide.
Whether the platform can regain its footing in the volatile world of crypto remains uncertain, but the recent fallout illustrates the high stakes in the race to dominate the memecoin market.
