Catenaa, Wednesday, June 18, 2025-Solana-based memecoin launchpad Pump.fun is facing a wave of backlash after extracting $741 million in user fees, drawing sharp criticism from crypto influencers and regulators amid allegations of enabling scams and hosting dangerous livestream content.
According to data from blockchain analytics firm LookOnChain, Pump.fun has sold 4.1 million SOL tokens since May 2024, with most funds transferred to Kraken or converted into USDC.
This comes as the platform reportedly gears up for a $1 billion token sale, valuing it at $4 billion.
Crypto influencer Crypto Bitlord described the platform as a “disease,” accusing it of enabling scams responsible for over $20 billion in losses and linking it to livestreams that allegedly showed self-harm threats.
He urged its removal from the internet, warning of its psychological and financial toll.
Pump.fun’s livestream feature, suspended in November after extreme broadcasts, was quietly reintroduced in April but failed to maintain promised moderation.
Critics argue the feature has contributed to online distress and manipulation of token markets.
The platform, which charges a 0.25% trading fee and launched over 27,000 tokens daily, has been scrutinized for incentivizing “rug pulls” through a controversial revenue-sharing model that rewards token creators.
Despite launching with community appeal in January 2024, only a tiny fraction of its 13.5 million wallets saw substantial returns, with fewer than 300 wallets profiting more than $1 million.
X recently suspended Pump.fun’s account and that of its co-founder, signaling intensifying scrutiny amid pending legal action over unregistered securities and potential regulatory breaches.
