- Pump.fun’s revenue fell from $33.83M to $11.31M in a week.
- They suspended the livestream following reports of aggressive and dangerous content.
Pump.fun, one of the largest Solana memecoin launchpads, quickly saw its revenue dive after putting its livestream feature on ice for safety reasons. The platform’s weekly revenue fell by 66%, from $33.83 million during the week of November 18–24 to $11.31 million from November 25 to December 1, according to data from DefiLlama.
This came after reports of injurious and violent content through livestreams, during which some users were reportedly going to extreme measures just to promote their tokens. The cases were so serious that the Pump.fun team had no choice but to disable the controversial feature.
Concerns Spark Livestream Suspension
The live streaming feature, which was supposed to promote new memecoins, quickly turned into something more serious when users were live streaming threats. A user threatened to kill himself if his token was not to hit a certain market cap, Beau reported, citing his position as a safety project manager at Pudgy Penguins.
They went on to include more violent threats made such as the users threatening animals and schools among other things. Social media users also urged Pump to act fast and mark them through posting on their platform before doing that. Pump.fun on its part chose to withdraw all access to livestream on the 25th of November.
Pump.fun had seen a surge in revenue earlier in November, peaking at $33.83 million during the fourth week, a 400% increase from the start of the month. However, the abrupt suspension of its livestream feature reversed this upward trend.
However, a decline in revenue is not at all a very good sign coming off the content moderation challenges facing the decentralized platforms. The future road ahead is quite challenging for Pump.fun when it is going to need its revenue stream rebuilt while giving people a very safe and responsible experience.
The incident teaches again that such incidents are inevitable on how safely platforms carry the business of managing their safety while maintaining their community trust amid a super high-speed environment of DeFi.
