Solana meme coin launchpad pump.fun has lost some of its weekly revenue. According to data from DefiLlama, the platform has seen its weekly revenue drop by 66% following the decision to disable its livestream features. The platform decided to disable the feature following reports of illegal and harmful content being broadcasted to users by some developers. The company’s revenue notched a weekly high of $33 million in November.
The Solana launchpad started November on a bright note, seeing its revenue peak by the end of the fourth week. DefiLlama’s data detailed the platform’s activities from November 18 to 24, where it posted $33 million in revenue for the week. The rise was a surge of 60% from the previous week and a 400% jump compared to revenue from the start of the month.
Pump.fun registers a drastic weekly revenue drop
Following its massive weekly returns in November, the platform’s revenue fell drastically this week. DefiLlama shows that the drop occurred from November 25 to December 1. The platform registered a weekly inflow of $11 million, undoing the gains it registered in November. The figure represents a massive 66% drop from the previous week.
The decrease ensued after the platform announced it would remove livestream capabilities from the website. Before this decision, there had been several calls from Pump.fun users detailing the illicit activities playing out on live streams. For instance, some users threatened to harm themselves if the market cap of their tokens failed to hit a threshold by a certain time, while others were using it to carry out rug pulls, floating tokens, and draining liquidity.
Livestream backlash and the can of worms in the crypto industry
Pump.fun and the whole crypto sector were alarmed on November 25, after the safety manager of Pudgy Penguins Beau reported the case of a developer threatening to commit suicide. The developer took to the livestream to threaten users that he was going to commit suicide if his coin failed to hit a specific market cap target.
Although the Pump.fun said adequate help had been provided to the streamer, there were reports of similar events. There were various users making threats of bodily harm, with others threatening to cause harm to others. A peculiar case on X was when a man threatened to shoot a dog if he failed to hit his target, while another user threatened a school shooting.
Responding to the increased violent conduct, Pump.fun announced that the livestream feature has been disabled. The platform mentioned that upon its checks, it realized disturbing content and activities were being perpetrated live. Although live stream has been disabled indefinitely, Pump.fun hints at a comeback for the feature, but only when it has figured out effective moderation.
Discussing the unfortunate incidents on the livestream, partner at Digital and Analogue Partners Yuriy Borisov said it is a legitimate cause to involve the police. He also said that aside from notifying authorities, there should be civil lawsuits against the perpetrators. Meanwhile, Trading Strategy co-founder Mikko Ohtamaa highlighted that the activities put Pump.fun at the risk of being shut down till regulators are sure it can moderate things.
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