Pump.fun's X accounts blocked amid PUMP token launch; SEC investigation speculated.
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2 min read
Social Platform X Blocks Pump.fun Accounts
The social network X, formerly known as Twitter, has suspended the accounts of the meme coin platform Pump.fun and its founder Alon Cohen. This suspension comes just before the launch of the PUMP token, which aims to raise $1 billion through its initial sale.
Impact on PUMP Token Launch
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Pump.fun’s X account, which had approximately 500,000 followers, was a crucial channel for community interaction. The suspension could adversely affect the token generation event (TGE) for Pump.fun.
Speculation Surrounding the Suspension
In addition to Pump.fun, X has also suspended 19 other cryptocurrency-related profiles, including GMGN, Bloom Trading, BullX, and Eliza OS. While the specific reasons for these actions remain unclear, it is speculated that a U.S. Securities and Exchange Commission (SEC) investigation might be involved. However, no official confirmation has been provided by the SEC.
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One user suggested that the accounts might have been suspended due to unpaid API usage, which also led to the banning of other related accounts.
Ongoing Legal Challenges
Earlier this year, Pump.fun faced a lawsuit from Diego Aguilar, who accused the platform of securities law violations and generating approximately $500 million from unregistered token sales.
Related: SEC Changes Stance on Crypto Regulations, Combats Fraud in Digital Assets
Community Response
As the community awaits further clarification from Pump.fun and other affected projects, the success of the PUMP airdrop and user trust now hinge on the platform’s crisis management capabilities.
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Sophia is a pioneer in the world of Web3 and NFT ecosystems. With extensive experience in digital art and tokenomics, she breaks down the intricate relationships between creativity and blockchain technology. Her unique perspective bridges the gap between technology and culture.
