After its livestream feature was disabled due to reports of bad content being aired, Pump.fun, had a dramatic drop in weekly revenue.
The platform, once riding high on a wave of memecoin enthusiasm, faced significant backlash from its community, prompting swift action to address safety concerns.
Pump.fun Weekly Revenue Drops by 66%
The platform began November with strong growth, achieving notable revenue milestones. Pump.fun made $33.83 million between November 18 and 24, a 60% rise from the previous week and a startling 400% spike from early November, according to DefiLlama data. This peak underscored the growing popularity of the platform among memecoin creators and traders.
However, the following week saw a dramatic reversal. From November 25 to December 1, Pump.fun’s weekly revenue plummeted to $11.31 million, marking a 66% drop from its previous high. The downturn coincided with Pump.fun’s decision to disable its livestream feature after concerns about the content being broadcast emerged.
The controversy surrounding Pump.fun’s livestream feature gained attention when community members reported troubling behaviour. In one alarming incident Beau, the safety project manager at Pudgy Penguins, flagged a livestream in which a user reportedly threatened self-harm if their token did not reach a certain market cap. This and similar incidents led to widespread criticism of Pump.fun’s moderation policies.
Pump.fun’s Response to the Backlash
Pump.fun responded to the criticism by declaring that the broadcast feature would be permanently disabled. In a statement, the team acknowledged the severity of the situation and expressed their commitment to user safety. “The disturbing events on the livestreams have caused concern,” the team wrote, adding that they would review and improve moderation before re-enabling the feature.
The decision to pause live streaming has significantly impacted Pump.fun’s growth trajectory. Once a novel tool for memecoin creators to engage with their audience, the livestream feature played a pivotal role in attracting users and driving revenue. Its absence has dampened the platform’s appeal, leading to a notable slowdown in activity.
Pump.fun’s Growing Popularity
Despite the setback, Pump.fun remains a key player in the memecoin space. Private markets platform SecondLane recently listed a 1% equity stake in Pump.fun at a fully diluted valuation (FDV) of $1.5 billion. The offering, priced at $15 million, highlights investor confidence in the platform’s long-term potential despite its current challenges.
The Pump.fun controversy underscores the importance of robust moderation tools in emerging Web3 platforms. As the memecoin space continues to evolve, platforms like Pump.fun must balance innovation with user safety, ensuring that growth does not come at the cost of community well-being. For now, all eyes are on Pump.fun as it navigates this critical period and works to restore trust among its users.