Is the Meme platform facing a cold winter? Coin issuance plans are hindered, entangled in lawsuits.

As the popularity of the Meme coin market continues to wane, a once highly regarded platform is facing unprecedented challenges. Just as it is about to enter a critical moment, the platform and its founder's social media accounts were suddenly banned, and the shadow of multiple legal lawsuits once again looms, casting a veil of uncertainty over its future development.

Development has been hindered, and the highlight moments may have passed.

According to data platform statistics, this platform set a peak daily revenue of over 7 million USD on January 23 of this year, but has since continued to decline, recently maintaining around 1 million USD per day. Meanwhile, the Meme market has cooled overall, with similar platforms emerging like mushrooms after rain, leading to increasingly fierce market competition. Although the platform has attempted to launch its own AMM and "live issuance" and other innovative gameplay, the results have not been ideal. Under multiple pressures, issuing coins is seen by the community as the platform's "last struggle."

According to media reports, the platform originally planned to raise up to 1 billion dollars through an ICO and was considering introducing an "income sharing" mechanism. Its ICO valuation is 4 billion dollars, with a total token supply cap expected to be 1 trillion coins, marketed to private investors at a price of 0.004 dollars 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 to be released, the situation took a dramatic turn. The platform's official and its founder's social media accounts were suddenly banned. This wave of account bans had quietly spread since last week, with many KOLs and trading platform accounts active in the Meme coin ecosystem being banned one after another, plunging the Meme ecosystem into turmoil and confusion, and the platform's coin issuing plan may be forced to hit the pause button.

Multiple Risks: Class Action Lawsuits and Founder Disputes

Regarding the sudden wave of account bans, there are various opinions in the community. Some believe that this may be related to the project's violation of the social platform's API usage regulations, suspected of scraping "black market" data; others speculate that the account bans may be aimed at cracking down on "excessive liquidity extraction" behaviors, potentially pointing to deeper underlying fraudulent mechanisms. There are also voices suggesting that the social platform is tightening its regulatory promotion of high volatility and high-risk financial products like Meme coins.

What is even more concerning is that the platform is facing a series of legal lawsuits. As early as December 2024, the UK Financial Conduct Authority issued a stern warning against it, stating that it was providing financial services or products without permission. The platform subsequently prohibited UK users from accessing the website.

After entering 2025, North America also saw a series of class action lawsuits against the platform and its executives:

1. On January 16, a law firm in the U.S. cryptocurrency sector filed a lawsuit on behalf of multiple affected investors; On January 30, investor Diego Aguilar filed a class action lawsuit, accusing the project of illegally collecting nearly $500 million in fees while allegedly violating U.S. securities laws, and described its operations as "a new hybrid of a Ponzi scheme and pump-and-dump."

In addition, the co-founder of the platform was also involved in controversies surrounding several "junk coin" projects 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 USD worth of ETH. The developer promoted these coins online and then sold them at their peak, resulting in one of the projects plummeting by 88%.

The accumulation of dissatisfaction in the community has lasted 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. In the past year or so, 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 users' 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 token transactions on the platform, over 60% are in a state of loss. About 2.408 million addresses (56.6%) have losses between 0 and 1,000 dollars, and around 1,700 addresses have losses exceeding 100,000 dollars, of which 46 addresses have losses exceeding 1 million dollars.

Among the addresses in a profitable state, the majority of the earnings are also very limited, with the number of addresses in the profit range of 0 to 1000 USD being the most, 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% have a revenue of less than 1,000 dollars, with 34.9% earning less than 100 dollars, and 48.5% earning between 100 and 1,000 dollars. Only 1.8% of creators are able to earn more than 5,000 dollars.

Undeniably, the platform once shone brightly during the Meme craze, becoming a significant driving force behind the market frenzy. However, with the sudden cooling of enthusiasm and the outbreak of account bans, this once-celebrated feast is rapidly cooling down. In the face of a situation where timing, circumstances, and people are all against it, how should the platform break the deadlock to welcome a second spring? This question may determine its future fate.