X Suspends Pump.fun, Memecoin Accounts, Causing $10M Trading Surge

In a sudden and dramatic move, X (formerly Twitter) suspended the accounts of Pump.fun, a Solana-based memecoin launchpad, and its founder Alon Cohen, along with numerous other prominent memecoin and trading tool accounts. This action, which began late on June 16, severed a crucial communication link for one of the most dynamic and contentious segments of the crypto ecosystem, leaving traders, developers, and influencers in disarray.

The reason behind the suspensions remains unclear, as X has not provided an official explanation. The affected profiles display only a generic message stating that they have violated X's rules. Industry speculation is rife, with some users suggesting that the use of unauthorized third-party APIs may have triggered the ban. Several of the suspended platforms were allegedly using unofficial tools to access X data, bypassing the platform’s high API fees.

Another theory points to increasing regulatory scrutiny. Rumors suggest that ongoing SEC investigations into Pump.fun’s rapid token launches and potential securities violations may have played a role. Pump.fun has faced legal challenges over allegedly unregistered securities and controversial tokens, and its high-profile, sometimes chaotic livestreams have previously attracted negative attention.

The immediate impact of the suspensions was significant. Within an hour, blockchain analytics revealed a surge in the minting of new memecoins referencing the bans, with five of these tokens trending in the top 10 on DEX Screener and collectively driving over $10 million in volume. Additionally, 15 out of 31 tokens that completed Pump.fun’s bonding curve in the hour after the ban were directly linked to the incident, representing nearly 9% of all memecoins that completed the process that day.

The removal of Pump.fun’s X account and those of other trading tool providers like GMGN, BullX, and Bloom Trading disrupted the flow of information and coordination for new token launches. Founders and traders, suddenly cut off from their main audience, reported sharp drops in engagement and liquidity. Real-time dashboards showed capital flowing out of affected tokens, with some traders moving to rival launchpads or experimenting with decentralized social platforms to regroup.

The memecoin community responded swiftly and chaotically. Within minutes, users began minting protest tokens and sharing screenshots of their favorite accounts’ suspensions. Telegram and Discord groups saw a spike in activity as traders and influencers sought new channels for updates and coordination. Some, like the GMGN team, announced they were appealing the bans and working with X to restore access, but many remain in limbo.

The crackdown has reignited debate over the role of centralized social media in crypto. With X’s unpredictable enforcement and lack of transparency, some memecoin founders and community leaders are now openly discussing a migration to decentralized social networks—platforms where account bans are impossible and community governance is the norm. Whether this shift gains traction remains to be seen, but the incident has highlighted just how vulnerable crypto communities are to sudden policy changes by major tech platforms.

As Pump.fun’s website and other affected platforms remain operational, the memecoin sector faces a period of heightened uncertainty. Upcoming token launches are likely to see reduced hype and liquidity, and the absence of major influencers and trading bots could reshape how new projects gain traction. At the same time, the crackdown may force the community to innovate—either by finding new ways to coordinate or by embracing decentralized alternatives for both trading and social interaction.