Pump.fun turns to DMs and group messaging features after failed livestream experiment

Pump.fun announced the launch of its direct messaging (DM) and group messaging features on its mobile apps, which will be available for iOS and Android devices on Thursday, March 13, 2023. 

This new development is coming off the back of the abrupt closure of Pump.fun’s controversial livestreaming feature, which was initially launched in mid-2024. The memecoin launchpad platform is a major driver of traffic and liquidity to the Solana blockchain. 

The rise and fall of Pump.fun’s livestream feature 

Pump.fun launched its livestream feature to help creators court awareness and engagement around their memecoins. Creators could launch meme tokens and then use livestreaming events to get more users to buy the tokens and drive the prices up in real-time. This concept isn’t exactly novel as e-commerce platforms in countries like China employ similar sales strategies to better demo their products.

However, the reality was different from the vision thanks to a lack of content moderation, which is not exactly a staple of the crypto industry. The livestream feature became an arena for harmful content, with users streaming racist, pornographic, and other abusive materials, such as animal abuse and threats to commit bodily harm to themselves and their family members, all in a bid to get more users to buy their memecoins. 

The series of events caused widespread backlash and forced one of Pump.fun’s founders, Alon Cohen, to announce that it will shut down the livestream feature while they find modern ways to tackle video content moderation. 

Messaging to the rescue?

Following the unfortunate end of the livestream feature, it seems Pump.fun has shifted its focus to DMs and group messaging as one of the tools for community engagement on the platform. It’s also a welcome development as it gives the platform more control over content moderation. However, it doesn’t totally insulate the feature from being abused again. There’s the existential tendency of people trying to do extreme things to court attention for their memecoin launches. It’s just too early to determine how the messaging features will be used. 

According to speculators, this may also be a chance for Pump.fun to redeem itself from the livestreaming debacle and also get more activity on the platform which has recorded a decline in activity compared to it’s meteoric rise last year.

Upon the announcement of the indefinite closure of its livestreaming feature, activities on Pump.fun reportedly dropped by 50% late last year. It saw a temporary uptick earlier in January, but it has been down badly after memecoins such as LIBRA and TRUMP caused tremendous losses to holders despite being heavily supported by leading political figures like Javier Milei and Donald Trump, respectively.

Pump.fun has had an eventful year in the memecoin space 

Despite recent setbacks, Pump.fun remains a dominant player in the memecoin market. Pump.fun launched with lots of promise in January of 2024, and it was responsible for over 70% of the memecoins launched on the Solana blockchain at some point last year. 

For its creators, Pump.fun has been a lucrative venture as they get to charge a 1% trading fee as well as SOL charges for memecoins that satisfy its criteria to move into larger exchanges. The memecoin launchpad also rakes in large amounts in trading fees, reaching as high as $15 million at its peak. 

However, Pump.fun’s journey hasn’t exactly been smooth this year as it currently faces a series of class action lawsuits in the United States. 

In December 2024, the United Kingdom’s financial authority, the Financial Conduct Authority (FCA), warned the public that Pump.fun isn’t authorized to operate in the country, leading to Pump.fun restricting access to its platform to users in the UK. The restriction means UK users still cannot access the memecoin launchpad and its new messaging feature.

Adding to Pump.fun’s troubles, its official X account was recently hacked, with attackers promoting fraudulent tokens. 

As expected, the new messaging feature was received with mixed feelings by Pump.fun’s community. Some users are skeptical, while others are more receptive. One user on X (@0xKaco) said, “Pump fun has always been a social platform 1st and a trading platform 2nd,” with another user highlighting concerns from the livestream mishap and asking if no one will be harassed or sent slurs for selling. 

Despite all the speculations, some users are already testing the new feature and announcing their new group chats on X. The coming months will be a determinant for many users and speculators of the platform if the new feature is a better upgrade or carry on with the legacy of the livestreaming feature. 

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