X Suspends Solana-Based Meme Coin Accounts including Pump.fun, Raising Questions Over Crypto Oversight

Several Solana-based crypto trading platforms, including meme coin launchpad Pump.fun, have had their X accounts suspended without warning, prompting widespread speculation regarding the reasons behind the enforcement action.

ElizaOS founder Shaw Walters
 

On Monday, users discovered that the official X handles for Pump.fun and its co-founder, Alon Cohen, displayed a suspension notice, stating only that they had violated X rules. Other affected accounts include trading tools such as GMGN, BullX, Bloom Trading, and the AI agent platform Eliza OS. The accounts of ElizaOS founder Shaw Walters and other affiliated team members were also impacted.
 

GMGN, in a message on its Telegram, said it was "actively appealing the decision and working to restore the account as soon as possible." The platform added, “During this time, our operations continue uninterrupted. Our team is conducting a thorough investigation into the matter and remains in close communication with the X to expedite a resolution.”
 

BullX claimed via Discord on 13 June that its account had been “mass reported.” The platform was previously under scrutiny after a viral post claimed it was shuttering, with BullX stating the claims were spread by “certain individuals with ulterior motives.”
 

The reasons for the suspensions remain unclear. Some X users have speculated that the affected platforms were using unofficial APIs to scrape X data without paying for premium developer tools. In January 2023, X imposed severe restrictions on API access, making legitimate use prohibitively expensive. There is a view that some platforms may have utilised external APIs to evade these fees, potentially resulting in enforcement action.
 

Others pointed to a fake post circulating online, alleging that the US Securities and Exchange Commission (SEC) is investigating Pump.fun, although no such notice has appeared on the regulator’s official account. Some users have welcomed the shutdowns due to growing concern around the Solana meme coin ecosystem, where rug pulls are common, oversight is limited, and a number of projects have engaged in dangerous promotional tactics.
 

Among recent incidents, several people have threatened to abuse others, cause self-harm, or commit suicide during live streams promoting meme coins on platforms like Pump.fun if their tokens failed to hit specific market caps. One developer even staged a fake hanging, prompting Pump.fun to ban live streaming for promotions. In May, Zerebro creator Jeffy Yu faked his suicide in a bid to boost his coin, later found to be a publicity stunt.
 

Despite the suspensions, all main platforms remain operational, with no impact on users’ ability to create or trade meme coins on Pump.fun or similar launchpads. The lack of official communication from X has fuelled speculation across social media, with some attributing the bans to possible API misuse and broader worries about the risks posed by meme coin launches.
 

Pump.fun has also faced criticism for facilitating the ease of launching and marketing coins with minimal oversight. In January, the platform was named in a proposed class-action lawsuit alleging that it offered unregistered securities and generated nearly $500 million in fees from highly volatile tokens. The lawsuit is still pending, and no formal regulatory action has been taken.
 

Recent reports claim Pump.fun is planning to raise $1 billion in a token sale at a $4 billion valuation, further intensifying scrutiny. Some community members have speculated that the platform’s X account suspension could affect the upcoming token launch, as it was the major means to connect to its users. “That pump fun $1 billion token sale just got rugged,” one user commented.
 

Co-founder Alon Cohen had earlier denied any rumours about the launch of a potential Pump.fun token. “There’s a reality where what Base did is normal in a few years’ time—but it DEFINITELY isn’t today and that has resulted in hurt,” he tweeted in response to Coinbase’s Layer 2 network Base’s controversial auto-minted token experiment, making it clear his platform has no plans to follow suit.
 

A token creator on Pump.fun reportedly earned $93,780 in just three weeks, thanks to the platform’s newly introduced creator revenue sharing feature. The wallet was responsible for creating the Moonpig meme coin, which reached a $125 million market cap last month. Over the three weeks since the feature’s introduction, $2.9 million has been distributed to creators.
 

The suspension of accounts associated with Solana meme coin exchanges, combined with ongoing legal and regulatory concerns, has renewed discussion on the dangers of unregulated meme coin trading. Although Pump.fun and similar services remain active, the situation continues to evolve as both regulators and social media platforms consider their next steps.