Over 20 crypto-linked accounts taken offline, sparking concern across the industry

In a sweeping move that has alarmed the crypto community, social media platform X (formerly Twitter) has suspended the accounts of memecoin platform Pump.fun and its co-founder, Alon Cohen, alongside more than 20 other crypto-related accounts. The mass suspensions began on Monday, with X providing no official explanation beyond its standard notice citing violations of platform rules.

Crypto Community Caught in Sudden Account Purge

X, which has long been the go-to platform for crypto discourse and community building, suddenly removed access to several high-profile accounts in the space. The suspensions included Pump.fun, Cohen, and at least 19 other accounts linked to projects such as GMGN, BullX, Bloom Trading, and AI-driven tool Eliza OS.

A list of the affected profiles was compiled and circulated by an X user known as “Otto,” who closely tracks developments in the crypto space. The lack of transparency around the suspensions has left users and industry participants speculating about the underlying cause.

Pump.fun Remains Silent as Peers Begin Appeal Process

As of Tuesday, Pump.fun has yet to make a formal public statement. However, GMGN, one of the affected platforms, issued a message via Telegram, acknowledging its account’s suspension and confirming it is actively appealing the decision. The company stated that it is “working to restore the account as soon as possible” and is “in close communication with X to expedite a resolution.”

These suspensions are especially disruptive given that X remains a critical communication channel for Web3 projects. With these bans in place, many companies are temporarily cut off from their user bases, raising concerns about censorship and the centralisation of digital communication.

API Rule Speculations Emerge

A potential explanation for the wave of suspensions is linked to X’s policy on third-party APIs. Since January 2023, the platform has banned the use of external APIs, pushing projects to opt for its in-house API service, which costs upwards of $60,000 annually for startup-level access.

Multiple X users have speculated that the suspended crypto accounts were attempting to bypass these costs by integrating unauthorised APIs. While this theory has gained traction in the community, no official reason for the bans has been provided by X at the time of reporting.

Legal Shadows and Controversies Surrounding Pump.fun

Adding to the controversy, Pump.fun has already been under scrutiny in recent months. In January, the platform was hit with a class-action lawsuit accusing it of facilitating pump-and-dump schemes. The lawsuit claimed that every token launched via Pump.fun’s platform functioned as an unregistered security, generating nearly $500 million in fees.

Critics argue that the ease with which memecoins can be created using Pump.fun’s tools has enabled bad actors to exploit retail investors with highly speculative, and often worthless, tokens.

In response to the recent suspensions, X user “Braden,” who claims to handle marketing for Pump.fun, dismissed the situation as “probably the mass reporting bs [bullshit],” suggesting the bans may have been triggered by coordinated user complaints rather than actual rule violations.

Uncertain Future for Affected Platforms

The incident has once again raised questions about the centralised control that platforms like X hold over the crypto industry’s public discourse. While some affected platforms are pursuing reinstatement, the broader impact on community engagement and project visibility could be significant, especially if suspensions persist.

As of now, neither X nor Pump.fun has released a comprehensive statement addressing the situation, leaving the industry in suspense.