Pump.fun’s Memecoin empire stumbles amid scandals and regulations.

Pump.fun, a popular social media platform for generating memecoins, is experiencing a massive downfall. Daily token creations fell from a peak of 69,000 to just 33,000, while active users dropped by 38%, from 261,000 to 161,000. According to local reports, these failures are followed by several controversies and a major downfall: the UK's Financial Conduct Authority has banned the platform, citing regulatory concerns.

The platform, popular for its simple token creation process, became notorious for its lack of oversight. Users can remain anonymous, leading to problematic and offensive content, including racist slurs and such as fake suicides that have sparked public outrage. The platform's decision to disable its live-streaming feature followed backlog problems – exacerbating the problems and reducing revenue by a third. Before the ban, Polymarket reflected a growing belief that the feature's days were numbered, with forecasts giving it just a 22% chance of surviving the week. On Monday night, Pump.fun responded to the pressure and officially disabled its live streaming function. However, it is too late to respond as the UK has officially banned the forum today.

what happened?

The controversial live stream was incorporated directly into the coin's listing pages, allowing developers to promote their tokens live and became an instant success. On one particular occasion, a teenager revealed his token and earned thousands of dollars, causing a trading frenzy as others rushed to buy the coin, sending the price skyrocketing.

Pump.fun was a key driver of its massive attention earlier this year, generating millionaires and boosting Solana's user activity. However, its future as a leader in the memecoin space is now uncertain as user interest is waning, revenues are falling and rising.

Pump.fun's Massive SOL activates Spark's focus

In other news, Lookonchain reported that Pump.fun recently invested 109,587 SOL (worth $24.3 million) into Kraken, adding to its extensive trading history. The platform generated a total revenue of 1,661,078 SOL ($362 million), of which 1,472,829 SOL ($289.5 million) was sold on decentralized exchanges and deposited into Kraken. After suffering heavy losses from the ban, this highlights Pamp.fun's significant revenue streams and continued efforts to dispose of SOL holdings, indicating its dominant position in the memecoin market.