Pump.fun, Founder Alon’s X Accounts Banned, Will This Affect Upcoming $1B Token Sale?

X (formerly Twitter) has banned several crypto-related accounts, including Solana-based memecoin launchpad Pump.fun and its co-founder, Alon Cohen.

Accounts of Eliza Labs leader Shaw Walters, who created the open-source operating system ElizaOS, were also suspended on Monday.

X is supposedly stepping into another wave of enforcement against memecoin tools and their founders. Pump fun’s rapid-fire launches and rumors of automated liquidity pulls made it a regulatory magnet.

The social media platform previously froze accounts involving meme trading tools, KOLs and crypto bots.

Other accounts banned on Monday include those related to GMGN, Bloom Trading, BullX and others.

Pump.fun and other affected account websites remain operational; however, the ban has raised mounting concerns over the recent memecoin hype.

Pump.fun Faces Increasing Scrutiny for its ‘Highly-Volatile’ Sales

The X platform did not specify any reason for the ban on the Solana-based memecoin account or its founder. However, speculations erupted concerning Pump.fun’s possible illegal operations.

Some users noted that the suspended platforms allegedly used unofficial APIs to wade X data, without paying for a premium. Meanwhile, other users speculated that the suspension comes as the SEC is investigating Pump.fun.

Early this year, Pump.fun faced a lawsuit for reportedly violating securities laws. Per the lawsuit, the platform sold unregistered securities disguised as meme tokens and attracted nearly $500 million in fees for marketing “highly-volatile” memecoins.

The platform had already been under pressure for selling an unregistered security – Peanut the Squirrel (PNUT) token. additionally, there’s also been a lot of controversy surrounding Pump.fun, from streaming disasters with potential suicides.

Meanwhile, GMGN platform, said in a message on Telegram that it is “actively appealing” X’s decision and is working to restore the account soon.

“During this time, our operations continue uninterrupted. Our team is conducting a thorough investigation into the matter and remains in close communication with the X to expedite a resolution,” the platform told users.

Cryptonews has reached out to Pump.fun and GMGN platforms.

Pump.fun’s $1 Billion Token Sale Coming?

The memecoin launchpad recently announced that it is planning to raise $1 billion in a token sale at a $4 billion token valuation. The community speculated that the token launch would be in June.

Some members said that the platform’s X account suspension would affect its upcoming token launch, as it was the major means to connect to its users. “That pump fun $1 billion token sale just got rugged,” wrote one user.

Co-founder Alon Cohen had earlier denied any rumors about the launch of a potential Pump.fun token.