X Shuts Down Memecoin Accounts Causing 9% Token Launch Drop

Coin WorldTuesday, Jun 17, 2025 11:59 pm ET
2min read

In a significant move that has stirred the cryptocurrency community, X (formerly Twitter) has shut down numerous memecoin-related accounts, including those of Pump.fun, a prominent Solana-based memecoin launchpad, and its founder Alon Cohen. This action, which began late on June 16, has left traders, developers, and influencers scrambling for new communication channels and solutions.

X has not provided a clear explanation for the mass suspensions, stating only that the accounts “violate the X Rules.” Industry experts speculate that the use of unauthorized third-party APIs or escalating regulatory scrutiny, particularly in light of ongoing SEC investigations into Pump.fun’s operations, may have triggered the suspensions. The platform has previously faced lawsuits over controversial tokens and alleged securities issues, suggesting that the suspensions could be a preemptive move to distance itself from potential legal ramifications.

The fallout from the suspensions was immediate and dramatic. Within an hour of the account bans, blockchain analytics revealed a surge in the creation of new memecoins, with five new tokens quickly rising to the top of trending charts. This demonstrates the community’s resilience and adaptability in the face of adversity. Additionally, 15 out of 31 tokens that transitioned from Pump.fun’s bonding curve during the hour following the bans were directly linked to the incident, indicating that nearly 9% of all memecoins launched that day were affected.

The removal of Pump.fun’s accounts, along with those of trading tool providers, severely disrupted the flow of information and coordination necessary for new token launches. Founders and traders, suddenly cut off from their main communication channels, reported significant drops in engagement and liquidity for their projects. Many turned to rival launchpads or decentralized social platforms in an attempt to regroup.

The memecoin community reacted with immediate outrage. Users began minting protest tokens and sharing screenshots of the suspensions across various platforms. Telegram and Discord groups saw a surge in activity as traders sought alternative channels for updates and coordination. Some teams, like GMGN, announced plans to appeal the bans and restore their accounts, but many remain in limbo, uncertain of their next steps. This incident has reignited discussions about the role of centralized social media in the crypto space. The unpredictable enforcement and lack of transparency from X have led some community leaders to contemplate a migration to decentralized social networks, where account bans are infeasible and community governance prevails.

With Pump.fun’s website and other affected platforms still operational, the memecoin sector is poised for a challenging period. Upcoming token launches are likely to experience diminished hype and liquidity, as the absence of influential accounts and trading bots alters how new projects gain traction. However, this crackdown may also catalyze innovation within the community. Traders and developers may be compelled to explore new coordination strategies and decentralized alternatives for trading and social interaction, potentially reshaping the memecoin landscape.

The suspension of Pump.fun and associated accounts marks a significant turning point in the relationship between social media platforms and the cryptocurrency community. As the memecoin sector navigates this turmoil, the focus will be on adaptability, resilience, and the potential shift toward decentralized communication channels. The incident serves as a stark reminder of the vulnerabilities inherent in relying on centralized platforms for vital communication in the rapidly evolving crypto ecosystem.

Ask Aime: Who lost their accounts on the crypto platform X, and what memecoins were affected?