Pump Fun Faces Revenue Drop After Livestream Controversy

• Pump Fun’s revenue dropped 33% after suspending its livestreaming feature due to community backlash and misuse.
• The platform pledged stronger moderation and clearer rules to prevent misuse and rebuild trust with its users.

After suspending its contentious livestreaming features, Pump Fun has suffered a major financial loss. Renowned for allowing users to create and launch their own memecoins, the platform’s income decreased by 33% to $3.6 million this week, therefore highlighting the rapid influence of the choice.

Originally intended to provide users with a means of sharing their artistic process, the livestreaming feature became controversial when it was utilized to show unsettling and violent material.

BREAKING: @PUMPDOTFUN SEES 33% REVENUE DROP AFTER REMOVING LIVE STREAM FEATURE, FALLING FROM $5.3M TO $3.6M DAILY pic.twitter.com/lj9TIs8FYN

— SolanaNews.sol (@solananew) November 29, 2024

Community Backlash Forces Pump Fun to Act Swiftly 

There was a general backlash following events where users threatened harm to others, including children and pets, if their token values fell short of desired targets. The crypto community, infuriated by such events, demanded an immediate suspension of the feature, as we previously highlighted.

One well-known memecoin influencer brought attention to these concerning activities and advised Pump Fun to stop livestreaming until appropriate security measures could be in place. In response to the criticism, the site quickly turned off the function in recognition of the necessity of better transparency and moderation.

Pump Fun achieved a peak daily income of $14.3 million prior to the stoppage, with a record-breaking day on Saturday. But the next day the platform’s income dropped to $3.75 million, a reflection of the extreme drop in user engagement following the removal of the divisive feature.

Pump Fun has subsequently committed to improving its moderation infrastructure to better manage the rise in platform activity. Along with teaching users about its moderation procedures, the platform wants to improve openness on its site policies.