Author: Yohan Yun, CoinTelegraph; Compiled by: White Water, Golden Finance

Pump.Fun’s live broadcast function seems to have become a platform for developers to play extremely shocking content to promote their tokens coins — which could lead to civil or criminal prosecution, according to legal experts.

From suicide threats to animal cruelty to pornographic content, developers who push boundaries face few consequences other than having their content removed. Meanwhile, industry players are urging Pump.fun to stop live streaming (which it did earlier today) until it can moderate content appropriately.

Calling Pump.fun to shut down its live streaming feature. Source: Beau

Pump.fun is one of this year’s huge success stories, offering a code-free token issuance service in just a few clicks, on Solana’s Played an important role in memecoin superstardom.

Although the platform is home to several scam coins and scams, it remains unregulated. However, the latest series of provocations in its live broadcasts are prompting market watchers to call for regulatory action.

Yuriy Brisov, Partner, Digital and Analogue Partners stated: "This is legitimate cause for criminal investigations and civil litigation."

Alon said: "While we strongly support free speech, we have a responsibility to ensure that users do not see objectionable/dangerous content , nor giving bad actors a platform to do whatever they want."

Pump.fun's latest issue with live streaming has reignited an ongoing debate over the distribution of user-generated content. Whether the content's channel, such as X or YouTube, should be held responsible for the content shared on their platform.

On social media, despite advances in content moderation technology, illegal content often slips through the cracks amid the proliferation of user-generated content.

Recently on Pump.fun, one "developer" threatened to hang himself if their token didn't reach a certain market cap, while another threatened a goldfish on camera.

Source: DBCrypto

Mikko Ohtamaa, co-founder of the algorithmic trading company Trading Strategy, said on X, Pump.fun has two options: either it is quickly shut down by the police after choosing not to moderate it, or it is eventually shut down after regulators take it seriously.closure.

"I stand for free speech, but these live streams are causing real problems with people breaking the law on live streams. When the mainstream media gets wind of this, it will trigger a shutdown," Ohtamaa said.

Alon acknowledged on X that Pump.fun's moderation "isn't perfect," adding that the NSFW (not safe for work) switch can be turned on to hide extreme videos.

In the United States, Section 230 of the Communications Decency Act provides some form of immunity to platforms that host user-generated content.

While platforms are generally protected, they must be responsible when moderating content. Failure to do so, especially if they knowingly allow harmful content, may result in legal challenges. For example, in the case of Barnes v. Yahoo. In the United States, courts have held that failure to deliver on a platform's promise to remove harmful content may give rise to liability.

Alon said Pump.fun has a "large" moderation team that "works around the clock," while inviting community members to flag unmoderated content or tokens to its support channel.

On November 25, some pornographic and racially charged content was displayed on Pump.Fun’s live broadcast board.

Across the four pages, many examples of animal cruelty and violent content can be seen, which appear to have ultimately been removed.

Pump.fun is a paradise for meme coins, but most of them have been accused of deceiving users.

The platform’s welcome note to visitors claims that it prevents rug pulls and that issuing tokens is not that difficult.

In a recent livestream, a teen created a token and then allegedly threw it to his investors for $30,000, then Use both middle fingers to give the audience the middle finger during a live broadcast.

The teenager was suspected of rug pulling on site. Source: TikTokInvestors

Some pornographic live broadcasts have been accused of playing videos recorded by adult content creators on other platforms, and these videos are used as headlines just to attract investors.

According to data from Dune Analytics, more than 3.8 million tokens have been issued through Pump.

The success rate for these tokens is low, with an estimated 1.2% of tokens successfully reaching the $69,000 market cap required to be listed on a decentralized exchange such as Raydium.

This can be attributed to several factors, such as oversaturation of the coin and poor marketing, as well as scams and fraud.

Mads Eberhardt, senior encryption analyst at Steno Research, pointed out: “This is not a good sign for the industry.” “I believe that more and moreThe snowball effect of multiple institutions adopting Bitcoin is unstoppable, but the industry would be better off if it didn’t happen all at once. ”

Digital and analog Partners’ Brisov said existing laws cover fraud involving cryptocurrencies. In the case of Pump.fun, the token creator could be held liable for wire fraud, which is a A type of white-collar crime that occurs through electronic means, including the Internet.

Brisov said: “For reasons I can’t understand, entrepreneurs dealing with Meme coins. Think the law does not apply to them. ”

“If you are wash trading, if you are cheating on Pump.fun, the same laws will apply to you, the [U.S.] Department of Justice will come after you, you will be prosecuted and Years in jail," he warned.

Pump.fun Unlike many other websites that prominently display terms and conditions or disclaimers on their website, their absence could be used against the platform if any formal investigation or litigation were initiated against it.

Brisov said that the Justice Department is not the only agency that Pump.fun should be worried about. "Any token has the potential to be considered a security, which means that unregistered securities offerings also carry high risks." , which also violates the Securities Law and relevant EU regulations," he said.