The rise of various trending tokens launched through Pump.fun that include racial slurs has sparked significant concern within the crypto community about the spread of discriminatory and highly offensive meme coins.
These events have reignited discussions about the absence of regulation in the meme coin sector. The simplicity with which tokens can be created on launchpads inevitably promotes the distribution of harmful content.
Escalation of Offensive Meme Coins
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A troubling trend in the meme coin market is the rise of racist tokens.
Among the top 15 trending tokens on DEXScreener, four bear names that contain racial slurs or reference skin color. All of these tokens were launched on the popular Solana platform, Pump.fun.
This news follows an incident where Pump.fun supporters allegedly vandalized the Hollywood sign in Los Angeles by displaying a banner featuring the launchpad’s signature pill logo.
While racist meme coins are not a novel issue in the crypto industry, their recent emergence as trending tokens on decentralized exchanges (DEXs) highlights the growing seriousness of the problem.
Ease of Creation and Malicious Content
Often referred to as a “meme coin factory,” Pump.fun is a decentralized platform that has streamlined the creation of meme coins. The launchpad simplifies the process to an extraordinary degree, making it quick and cost-effective.
This heightened ease of use has significantly lowered the entry barriers for launching hateful or racist meme coins. The increase in these offensive tokens symbolizes the democratization of harmful content.
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A notable example occurred earlier this year when an American rapper unveiled a “Swasticoin” on X.
In another case, a “Hitler Musk” token quickly surfaced on Pump.fun immediately after Elon Musk’s gesture during Donald Trump’s presidential inauguration. This act was widely seen as a nod to Nazi-fascism.
Despite some efforts by industry leaders to denounce the creation of these contentious tokens, recent events clearly illustrate that the issue remains entrenched.
The Regulatory Challenge of DEXs
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Prominent figures in the cryptocurrency field have addressed the rise of meme coins containing offensive themes.
Ethereum co-founder Vitalik Buterin has publicly criticized the surge of these tokens. In a blog post from March 2024, he specifically condemned “openly super-racist” meme coins on the Solana blockchain, along with other tokens connected to totalitarian regimes.
The Solana Foundation has also recognized the problem. Austin Federa, head of strategy at the foundation, suggested that introducing filtering mechanisms in crypto applications could be a potential method for restricting the visibility of these controversial assets.
However, combating this activity on a DEX is inherently challenging as there is no central authority to review or regulate token names before their launch.
As a result, a regulatory and ethical void persists, allowing the creation and widespread circulation of these contentious tokens.
