Meme platform suffers a severe blow, issue coin plan falls into crisis

A platform that once thrived during the Meme craze is now facing unprecedented challenges. Just as it is about to reach an important milestone, the platform and its founder's social media accounts have been banned, and the shadow of multiple legal lawsuits has resurfaced, casting a pall over its development prospects.

Development hindered, financing plan may be shelved

According to statistics from the data platform, it set a historical record for single-day revenue of over $7 million on January 23 this year. However, the revenue has continued to decline since then, recently maintaining around $1 million per day. At the same time, the overall heat of the Meme market has cooled down, with similar platforms emerging like mushrooms after rain, leading to increasingly fierce market competition. Although the platform has attempted to launch innovative features such as self-operated AMM and "live issuance", the results have not been significant.

According to reports, the platform originally planned to raise up to $1 billion through an ICO and was considering introducing a "revenue sharing" mechanism. The ICO valuation is $4 billion, with a total token supply cap expected to be 1 trillion coins, intended to be offered to private investors at a price of $0.004 per coin. In terms of token distribution, it is expected that 25% will be sold to the public, with another approximately 10% reserved for airdrops.

However, just 4 days before the announcement was released, the platform's official accounts and those of its founders were suddenly banned. This wave of account bans had actually started to spread as early as last week, with multiple KOLs active in the Meme coin ecosystem and trading platform accounts being banned consecutively, causing the entire Meme ecosystem to fall into turmoil and confusion.

Multiple Risks: Class Action Lawsuits and Founder Disputes

There are various opinions in the community regarding the sudden wave of account bans. Some believe that this may be related to the project violating the platform's API usage regulations; others speculate that the bans may be a crackdown on "excessive extraction of liquidity"; and there are also voices suggesting that this could be the platform tightening its promotion and regulation of high-volatility, high-risk financial products like Meme coins.

What is more concerning is that the platform is facing a series of legal lawsuits. As early as last December, the UK's Financial Conduct Authority (FCA) issued a stern warning, stating that it was providing financial services or products without permission. In January of this year, multiple class action lawsuits emerged in the United States against the platform and its executives, accusing them of violating U.S. securities laws, illegally charging nearly $500 million in fees, and describing its operations as a "new hybrid of Ponzi schemes and pump-and-dump."

In addition, the co-founder of the platform was also involved in controversies surrounding multiple "junk coin" project collapses in earlier years. According to investigations, a developer with the same name issued several crypto projects in 2017, two of which brought him approximately $75,000 in ETH profits. After being sold off at their peak, these projects experienced a price crash, leading to strong doubts from the community.

Community discontent is rising.

In fact, the community has been dissatisfied with the platform for a long time. Data shows that the platform transfers the accumulated fee income to the exchange every one to two weeks. Over the past year, the platform has sold approximately 4.179 million SOL, totaling up to 751 million dollars, with an average selling price of about 179.89 dollars.

However, the profit situation for users is not optimistic. Data shows that among approximately 4.257 million addresses that conducted more than 10 token transactions on the platform in the past 6 months, over 60% are in a state of loss. Among them, about 2.408 million addresses have losses ranging from 0 to 1000 dollars, approximately 1700 addresses have losses exceeding 100,000 dollars, and 46 addresses have losses even exceeding 1 million dollars.

Even profitable addresses have very limited earnings. The number of addresses with profit amounts in the range of $0 to $1000 is the highest, reaching 916,500, accounting for 21.5%.

In addition, since the platform introduced creator revenue sharing, most people have not received much of the "cake". Among the 3,566 creators surveyed, 83.4% earned less than $1,000, with 34.9% earning less than $100 and 48.5% earning between $100 and $1,000. Only 1.8% of creators were able to earn more than $5,000.

Once shining brightly during the Meme craze, this platform is now facing multiple challenges. With the market's enthusiasm plummeting and account bans suddenly arising, this once grand feast is quickly cooling down. Under the influence of various adverse factors, whether this platform can break through and usher in a second spring remains an unknown.