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Meme issue coin platform faces dual blow of account suspension and lawsuit, uncertain ICO prospects.
Meme issue coin platform遭遇多重打击,前景扑朔迷离
At a critical moment just before the upcoming token issuance, the social media accounts of a well-known Meme issue coin platform and its founder were suddenly banned, and the shadow of multiple legal lawsuits reemerged. This unexpected event occurred just as the platform was about to enter the "monetization" stage, making it particularly noteworthy. The account bans, lawsuits, and various uncertainties have cast a shadow over the platform's glorious moments.
issue coin plan encounters obstacles
The market performance of this platform has fallen from its peak. Data shows that the platform set a record of over 7 million dollars in daily revenue on January 23 of this year, but it has since continued to decline, recently maintaining around 1 million dollars per day. Meanwhile, the overall heat of the Meme market has cooled, and similar issuing platforms have sprung up like mushrooms after rain, leading to increasingly fierce market competition. Although the platform has attempted to launch its own AMM and innovative gameplay such as "live issuance," the results have not been significant. Under multiple pressures, issuing coins is seen by the community as the platform's "last struggle."
According to media reports, the platform plans to raise up to $1 billion through its Initial Coin Offering (ICO) and is considering introducing a "revenue-sharing" mechanism. Its ICO valuation is $4 billion, with a total token supply cap expected to be 1 trillion coins, 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 approximately 10% reserved for airdrops.
However, just 4 days before the announcement was to be made, the situation took a sharp turn. The official social media accounts of the platform and its founder were suddenly banned. This wave of account bans had quietly spread since last week, with many influential figures active in the Meme coin ecosystem and accounts from trading bot platforms being banned one after another, plunging the Meme ecosystem into turmoil and confusion. The platform's issue coin plan may be forced to be suspended.
Multiple risks looming
Regarding the sudden wave of account bans, opinions in the community are varied. Some believe that this may be related to the project's violation of the API usage regulations of social platforms, suspected of scraping "black market" data; others speculate that the account bans may be a crackdown on "excessive liquidity extraction" behaviors, even pointing to deeper potential fraud mechanisms. There are also voices suggesting that social platforms are tightening regulation on the promotion of high-volatility, high-risk financial products such as Meme coins.
More importantly, the platform is facing a series of legal lawsuits. In December 2024, the UK Financial Conduct Authority (FCA) issued a stern warning to the platform, stating that it was providing financial services or products without permission. The platform subsequently banned UK users from accessing the website.
After entering 2025, the North American region has also seen a series of class action lawsuits against the platform and its executives. On January 16, a U.S. law firm specializing in cryptocurrency represented multiple harmed investors in suing the platform. On January 30, an investor filed a class action lawsuit, accusing the project of illegally collecting nearly $500 million in fees while allegedly violating U.S. securities laws, describing its operations as a "new hybrid of a Ponzi scheme and market manipulation."
In addition, controversies surrounding the co-founder of the platform have also drawn attention. This founder has been questioned regarding his involvement in several "garbage coin" exit scams in earlier years. According to media investigations, a developer with the same name issued 8 crypto projects in 2017, two of which brought him about $75,000 in ETH profits. The developer promoted these coins online and then sold them at a peak, resulting in one project plummeting by 88%.
Community dissatisfaction has accumulated for a long time
In fact, the community has long been "complaining" about the platform. Every one to two weeks, the platform transfers the accumulated fee income to a certain exchange. Over the past year, the platform has sold approximately 4.179 million SOL, with a total amount reaching 751 million dollars, and an average selling price of about 179.89 dollars.
However, the user's profit data is contrary to this. According to the data, in the past 6 months, among approximately 4.257 million addresses that conducted more than 10 coin transactions on the platform, over 60% are in a loss state. About 2.408 million addresses (56.6%) have losses between 0 and 1000 dollars, while approximately 1700 addresses have losses exceeding 100,000 dollars, among which 46 addresses have losses exceeding 1 million dollars.
Among the addresses in a profitable state, most of the earnings are also very limited, with the number of addresses in the profit range of 0 to 1000 dollars being the highest, reaching 916,500 (21.5%).
In addition, since the platform introduced creator revenue sharing on May 12, 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 over $5,000.
Undoubtedly, the platform once shone brightly during the Meme craze, becoming an important driving force in the market frenzy. However, with the rapid cooling of enthusiasm and the sudden wave of account bans, this once grand feast is quickly cooling down. In the face of unfavorable circumstances where timing, location, and people are all against it, how the platform can break through to usher in a second spring remains an unresolved question.