{"id":35973,"date":"2025-06-20T01:41:29","date_gmt":"2025-06-20T01:41:29","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=35973"},"modified":"2025-06-20T01:41:29","modified_gmt":"2025-06-20T01:41:29","slug":"pump-fun-faces-backlash-as-critics-claim-741-million-theft","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/pump-fun-faces-backlash-as-critics-claim-741-million-theft\/","title":{"rendered":"Pump.fun Faces Backlash as Critics Claim $741 Million Theft"},"content":{"rendered":"

The landscape of cryptocurrency continues to evolve, but not without its share of controversies. Recently, Pump.fun, a Solana-based platform focused on memecoin launches, has found itself amidst a storm of criticism, accumulating approximately $741 million from user transactions.<\/p>\n

Investigations into the platform indicate that it has been liquidating its earnings from transaction fees in substantial amounts since May 2024. This has led many traders to question whether the platform prioritizes user welfare or its own financial gain.<\/p>\n

<\/span>Analysis of Fee Extractions<\/strong><\/span><\/h2>\n

Recent data<\/a> from LookOnChain reveals that Pump.fun has divested roughly 4.1 million SOL<\/a> tokens, generating around $741 million at an estimated average price of $180. Approximately 3.84 million SOL, valued at nearly $699 million, has been transferred to the Kraken exchange.<\/p>\n

Additionally, 264,373 SOL tokens have been exchanged for $41.64 million USDC. This trend highlights the platform’s remarkable ability to extract value from its user base over a short timeframe.<\/p>\n

<\/span>User Gains vs. Platform Revenues<\/strong><\/span><\/h2>\n

As per available information, a staggering 13.55 million wallets have interacted with Pump.fun<\/a>. However, only 293 of these wallets have successfully amassed over $1 million in profits. Alarmingly, a vast majority of participants have not surpassed earnings of $10,000.<\/p>\n

\n

Pump Fun has drained $741M from crypto enthusiasts. <\/p>\n

It’s estimated that scams on this platform have unlawfully extracted over $20 billion.<\/p>\n

This application is damaging and could lead to serious consequences for users.<\/p>\n

\u2014 Crypto Advocate (@crypto_advocate) June 17, 2025<\/a><\/p><\/blockquote>\n

In total, Pump.fun has facilitated over $66 billion in trading volume since its launch in January 2024, producing around 27,305 new tokens daily.<\/p>\n

Notably, the platform imposes a 0.25% fee on each trade and has introduced a 0.05% revenue share for token creators, potentially incentivizing developers to abandon their projects soon after cashing out.<\/p>\n

\"\"<\/p>\n

Controversy Surrounding Livestreaming Features<\/strong><\/p>\n

Concerns have arisen regarding the platform\u2019s livestreaming capabilities, which have been associated with grim media coverage. In November 2024, Pump.fun halted livestreams after shocking content aired to manipulate token prices.<\/p>\n

By April 2025, they discreetly re-enabled streaming for a select 5% of users, claiming enhanced moderation\u2014though users have noted the moderation improvements have yet to materialize.<\/p>\n

\n

Dear @pumpdotfun<\/a>, there is currently a dire situation in your livestreams where a user is threatening self-harm based on market conditions. This is unacceptable. Please take action.<\/p>\n

\u2014 Community Watch (@communitywatch) November 25, 2024<\/a><\/p><\/blockquote>\n

Notably, crypto influencer Crypto Advocate has labeled Pump.fun a harmful platform, citing severe incidents linked to livestreams and asserting that more than $20 billion has been lost to scams on the site.<\/p>\n

Calls to eliminate Pump.fun from the internet have emerged, fueled by concerns for the cryptocurrency community’s overall wellbeing.<\/p>\n

<\/p>\n

Convergence of Regulatory Challenges<\/strong><\/p>\n

The scrutiny surrounding Pump.fun is intensifying. Social media platform X has suspended its official account along with co-founder Alon Cohen’s profile without providing clear reasons.<\/p>\n

Speculation includes accusations of API misuse and potential violations of securities laws, with lawsuits claiming the platform is distributing unregistered securities disguised as meme tokens.<\/p>\n

Ambitious plans for a $1 billion token sale at a $4 billion valuation now face uncertainty due to regulatory pressures and diminished visibility on social media platforms. The future actions taken by Pump.fun will prove pivotal for both its business model and the users who have invested their funds based on its commitments.<\/p>\n

All images sourced from reputable platforms, data from TradingView.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The landscape of cryptocurrency continues to evolve, but not without its share of controversies. Recently, Pump.fun, a Solana-based platform focused on memecoin launches, has found itself amidst a storm of criticism, accumulating approximately $741 million from user transactions. Investigations into the platform indicate that it has been liquidating its earnings from transaction fees in substantial […]<\/p>\n","protected":false},"author":14,"featured_media":36098,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Pump.fun Faces Backlash as Critics Claim $741 Million Theft - Bitrabo","description":"The landscape of cryptocurrency continues to evolve, but not without its share of controversies. Recently, Pump.fun, a Solana-based platform focused on memecoin"},"footnotes":""},"categories":[316],"tags":[504,13555,561,688,4585,4532,7845],"class_list":["post-35973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-crypto","tag-diseasecritics","tag-million","tag-platform","tag-pump-fun","tag-slammed","tag-stole"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/35973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=35973"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/35973\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/36098"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=35973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=35973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=35973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}