09 December 2024 , 19:47
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A website that allows anyone to create their own cryptocurrency in a couple of clicks has been banned in the UK.
As reported on the Crypto Today podcast, pump.fun is a platform for so-called "memecoins" - tokens that are often based on social media trends and viral videos.
Some of these cryptocurrencies end up surging in value, only for prices to plummet in the blink of an eye.
The Financial Conduct Authority has now urged British consumers to avoid pump.fun altogether - and the site has been blocked.
The Australian rapper Iggy Azalea used pump.fun to create a cryptocurrency called MOTHER - but that’s fallen by 74% over the past six months.
It was also used to launch a token named after Peanut the Squirrel.
The animal had become famous on social media, but was euthanised after being seized by US officials.
At one point, this cryptocurrency had a total value of £1.8bn - more than some major British companies - but it’s fallen sharply since then.
Pump.fun has faced other controversies in the past.
Last month, the site took down a livestream feature that was being used to broadcast explicit content.
Some memecoin creators had threatened to abuse animals or engage in gun violence unless their tokens surged in value.
Cryptocurrencies are known for being volatile - but memecoins are even riskier.
They can be used to execute "pump-and-dump" scams that steal funds from victims.
Last week, the star of the "Hawk Tuah" meme faced a backlash after a memecoin she launched saw its price plunge by 90% in just three hours.
Haliey Welch has denied wrongdoing and says the token’s decline was out of her control.