Social media platform X has suspended the official accounts of several Solana-based memecoins, including Pump.fun.
The suspensions happened on 16 June, resulting in the deactivation of the accounts with no prior notice and no information as to why most of them were suspended.
What happened?
Pump.fun seems to be the first among the accounts to be suspended. This is a popular memecoin project with over 400,000 followers.
It was later discovered however that several other Solana memecoin projects were affected as well.
According to a source, the Pump.fun suspension came as a result of a court order, which could be the same reason for the others as well.
Sources also say that this is a part of a wider crackdown on memecoin projects. Meanwhile, the SEC had earlier notified the public that it was monitoring activity on PUMPFUN, which could have led to the suspension which also affected the founder’s account.
Since the suspension however, there has been no official statement on the action by the SEC, leaving investors in the dark concerning what could happen next.
This is especially painful considering that Pump.fun was just about to commence its $1 billion token sale.
SEC taking action
The Trump administration has been generally liberal towards cryptocurrencies. However, it is clear that the liberality doesn’t mean that there will be no regulatory action against activities that violate the rules.
The only question raising eyebrows is, why most of the affected projects Solana based?
There has been a recent proliferation of memecoins on Solana, many of which may not be legit or outright scams, hence the action by the SEC to protect investors from falling into the hands of fraudsters.
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