Sweep of Memecoin Accounts on X Leads to Questions

By: Isha Das

A sudden and unexplained suspension of several memecoin-related accounts from X has sparked speculation across the cryptocurrency community. Notably affected was the official account of the Solana-based memecoin launchpad Pump.fun, along with its founder Alon Cohen’s personal handle. The move also impacted other key players in the memecoin sector, resulting in significant disruption.

Reports show that several accounts, which serve various functions such as trading tools and automated order routing, were suspended en masse. The list, compiled by an X user, highlights accounts tied to communities like GMGN and Bloom, as well as numerous bot-infrastructure developers. While some suspect these actions are part of an internal enforcement sweep, others are considering the possibility of coordinated mass reporting. However, these claims remain unverified, leaving the community in the dark about the true motivation behind the suspensions.

The incident had notable financial repercussions, as new memecoins referencing the event and the founder's alias surged in volume on decentralized exchange platforms. According to a DEX Screener data report, these tokens, collectively, saw their combined volume soar to over $10 million within the first hour after the suspensions commenced. Additionally, out of the 31 tokens that completed the bonding curve on Pump.fun on June 16, nearly half were directly connected to the suspension event.

Amidst these events, the cryptocurrency community is left pondering the future and the rules surrounding the digital assets ecosystem on X. Some perceive this as a timely reminder of the platform's regulations on manipulation and spam, while others wonder if this is a precursor to broader changes in operational policies for blockchain-based applications. As discussions and speculations continue, affected individuals and projects are likely reassessing the platform's shifting landscape and potential impact on their operations.