98% Of Pump.fun Tokens Are Frauds: The Extractive Nature Of Solana Meme Coins
A new report by Solidus Labs on Thursday exposed rampant fraudulent activity in Solana‘s (CRYPTO: SOL) meme coin market, identifying that 98.7% of tokens on the decentralized exchange Pump.Fun are involved in pump-and-dump schemes or rug pulls.
Additionally, 93% of liquidity pools on Raydium, another major Solana DEX, exhibit characteristics of soft rug pulls, where creators abruptly withdraw liquidity, severely impacting token prices.
What Hppened: The findings highlight the urgent need for enhanced monitoring to protect traders and crypto institutions from financial, regulatory, and reputational risks.
Solana’s low transaction fees and rapid processing times have made it a hotspot for meme coin trading, but these same features enable scammers to execute fraudulent schemes swiftly.
Pump.Fun, with an average daily trading volume exceeding $100 million, saw over 7 million tokens deployed between January 2024 and March 2025, yet only 97,000 maintain liquidity above $1,000.
The report details how Pump.Fun’s bonding curve pricing model inherently favors token creators, driving prices up exponentially with each purchase and leaving late investors …
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