X Suspends Crypto Platforms Pump.fun, GMGN, BullX, Bloom Trading, Eliza OS

Social media platform X has suspended the accounts of crypto memecoin platform Pump.fun and its founder, Alon Cohen, as part of a broader action that saw dozens of crypto-related accounts temporarily banned. The suspensions occurred on Monday, with X providing no explanation beyond its standard disclaimer that accounts violating its rules are subject to suspension.

In addition to Pump.fun and Cohen, at least 19 other accounts linked to crypto trading platforms GMGN, BullX, Bloom Trading, and the artificial intelligence agent tool Eliza OS were also taken offline. This list was compiled by an X user known as "Otto." For years, X has been a favored platform for crypto users, making these suspensions significant as they hinder the ability of affected platforms to communicate with their user base.

GMGN, one of the affected platforms, acknowledged the suspension on Telegram, stating that it is actively appealing the decision and working to restore its account as soon as possible. The platform emphasized that it remains in close communication with X to expedite a resolution.

Speculation among X users suggests that the suspensions may be related to the use of a third-party application programming interface (API), which X banned in January 2023. Some users claimed that the platforms used outside APIs to avoid the high costs associated with X’s in-house API tool, which starts at $60,000 a year for its subscription level aimed at startups. Despite these speculations, the exact reason for the suspensions remains unclear.

Pump.fun, in particular, has faced controversy due to its platform, which simplifies the creation of memecoins—highly speculative cryptocurrencies with no intrinsic value. The platform has been accused of facilitating pump-and-dump schemes in a January class-action lawsuit, which alleged that every token it helped create is an unregistered security. The lawsuit further claimed that Pump.fun made nearly $500 million in fees from these activities.

The suspension of Pump.fun and its founder has raised concerns about the platform's future and its impact on the user base. It also highlights the significant influence that social media platforms hold over their users, as well as the lack of transparency in their decision-making processes. The sudden action has left users and followers seeking answers and speculating about the reasons behind the suspensions.