X Suspends Crypto Platforms Pump.fun, GMGN, BullX, 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 suspended.

In addition to Pump.fun and Cohen, at least 19 other accounts connected to various crypto trading platforms, including GMGN, BullX, and Eliza OS, were also taken offline. This move has significantly impacted the ability of these platforms to communicate with their users, as X has long been the preferred social media platform for the crypto community.

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. The platform emphasized its close communication with X to expedite a resolution.

Speculation within the crypto community suggests that the suspensions may be related to the use of third-party application programming interfaces (APIs), which X banned in January 2023. Some users claimed that the platforms used outside APIs to avoid the high costs of X’s in-house API tool, which starts at $60,000 a year for startups. However, the exact reason for the suspensions remains unclear.

Pump.fun, in particular, has been a controversial figure in the crypto community. 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 claimed that Pump.fun made nearly $500 million in fees from these activities.

The suspension of Pump.fun and its founder has raised questions about the platform's future and its impact on the broader crypto community. The lack of an official statement from X has left the community speculating about the reasons behind the suspensions. Some users have suggested that the suspensions could be due to mass reporting or violations of X's terms of service.

The incident highlights the risks associated with relying on centralized platforms for communication and community building. The crypto community, known for its resilience and adaptability, is likely to explore alternative communication channels in the wake of these suspensions. As the situation develops, it will be crucial for the community to remain vigilant and informed to ensure the integrity and transparency of the platform.