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Recently, X (formerly Twitter) has launched a large-scale account suspension campaign targeting the cryptocurrency industry, affecting dozens of crypto influencers and project accounts including Meme coin platform Pump.fun, core GMGN ecosystem accounts, and the Bloom Trading team. While X has not provided an official explanation, community analysis suggests the bans may involve multiple factors such as API abuse, spam behavior, and financial compliance risks.
Context: X's enterprise API comes with hefty fees (up to $42,000/month), and some crypto projects (e.g., Pump.fun, GMGN) are accused of using unofficial APIs or black-market data to build trading tracking tools.
Precedent: Tools like WuupX were previously banned for violating X's terms of service. This wave of suspensions may be X's further crackdown on unauthorized data scraping.
Automated Posting: Some banned accounts (e.g., ElizaOS, GMGN) are suspected of using bot frameworks to mass-promote Meme coin content, potentially violating X's
Low-Engagement Content: Mass posting of similar contract addresses (CA) with little genuine user interaction can easily be flagged as manipulative behavior.
"Liquidity Harvesting 2.0" Claims: KOL @MaryWynnReal exposed that Pump.fun may have an abnormal fund transfer mechanism, where user funds "mysteriously disappear" into suspicious wallets, drawing regulatory scrutiny.
"AutoRug" Feature Rumors: Reports suggest Pump.fun was developing an automated Rug Pull tool, which, though unconfirmed, has intensified doubts about its financial compliance.
Market Chaos: 80% of Meme coin projects collapse to zero, and while Pump.fun generates $1 billion in annual revenue, only 0.4% of users profit. X may be cleaning up high-risk financial promotions.
Regulatory Pressure: The U.S., U.K., and other regions are tightening scrutiny on Meme coin market manipulation, and X could be proactively aligning with policy changes.
Legal Issues: Pump.fun previously faced a class-action lawsuit in North America, and U.K. regulators have launched investigations. The bans may relate to cross-border compliance problems.
Appeals Underway: Suspended accounts are attempting reinstatement, but X has yet to respond publicly.
Industry Warning: This purge may signal X's stricter oversight of crypto marketing, pushing projects to prioritize API compliance, content strategy, and financial transparency.
Conclusion:
This account purge stems from multiple factors—data misuse, spam, financial risks, and regulatory pressure. As crypto and social media platforms become more intertwined, similar conflicts may become routine, urging the industry to proactively navigate compliance pitfalls.
