Legal experts suggest potential criminal charges could follow due to memecoin-related issues on the platform.
Pump.fun, a popular platform known for its memecoin-based entertainment and unique social features, has faced growing criticism following the release of its livestream function.
Amid concerns over harmful content circulating on its platform, the company has decided to suspend the feature indefinitely. A step towards acknowledging the potential risks associated with its implementation.
The decision to pause the live stream feature came after a series of disturbing incidents on Pump.fun. For example, users aired inappropriate, controversial, and potentially harmful content.
The platform, which has gained attention for its memecoin "freak shows" and viral stunts, quickly found itself in the crosshairs of regulators and industry experts alike.
Critics argue that combining speculative cryptocurrency promotions, including memecoins, and live streaming has led to exploiting vulnerable users, particularly those new to the crypto space.
With no real moderation systems in place, it created an environment where users were subjected to offensive, misleading, and sometimes illegal content.
This backlash has prompted calls from both users and legal experts for stricter regulation of platforms. Industry observers warned that without responsible oversight, services like Pump.fun could attract unwanted legal scrutiny and result in long-term reputational damage.
Experts have voiced concern over the potential legal ramifications for Pump.fun. Especially regarding its memecoin-driven "freak show" events. The event they claim could expose the platform to criminal charges.
The legal landscape surrounding crypto-related platforms remains complex, with certain actions. These include promoting illegal or misleading content -- carrying significant consequences.
Given the platform's focus on memecoins and user-generated content, there is a growing fear that Pump.fun's operations could soon face further regulatory action.
If the platform's broadcasts continue to violate financial regulations or encourage illegal behavior, it could attract criminal charges from authorities, who are already increasing their scrutiny of the crypto space.
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