{"id":26164,"date":"2025-05-10T21:32:01","date_gmt":"2025-05-10T21:32:01","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=26164"},"modified":"2025-05-10T21:32:01","modified_gmt":"2025-05-10T21:32:01","slug":"98-of-tokens-on-pump-fun-are-rug-pulls-or-fraud-report","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=26164","title":{"rendered":"98% of Tokens on Pump.fun Are Rug Pulls or Fraud: Report"},"content":{"rendered":"
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A new report from Solidus Labs has exposed a huge amount of what it calls \u201cfraudulent\u201d activity on the Solana blockchain.<\/p>\n

The findings revealed that 98.6% of tokens launched on Pump.fun could be classified as either rug pulls or pump-and-dump schemes.<\/p>\n

Solana: A Hotbed for Meme Coin Scams?<\/h2>\n

In its report<\/a>, the crypto surveillance firm pointed to Solana\u2019s low fees and user-friendly decentralized exchanges (DEX) as key reasons why it has become a hotspot for meme coin speculation.<\/p>\n

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\u201cInvestors beware as the Solana ecosystem continues to grow, it\u2019s increasingly becoming ground zero for memecoin fraud,\u201d Solidus warned.<\/p>\n<\/blockquote>\n

At the heart of this growth is Pump.fun, a Solana-based token-generating platform, which has seen daily trading volumes exceed $100 million. According to Solidus, this figure was mainly driven by speculative meme coin activity.<\/p>\n

Between January 2024 and March 2025, over 7 million tokens were deployed with at least five trades each. Of these, only 97,000 retained liquidity above $1,000. The report concludes that 98.6% of tokens on the platform collapsed into worthless pump-and-dump schemes shortly after launch.<\/p>\n

Earlier in the year, CryptoPotato reported<\/a> on a Pump.fun user who created at least 18,000 coins and netted more than $3.7 million from rapid price pumps and strategic exits.<\/p>\n

The platform recently launched<\/a> an automated market maker (AMM) that applies a bonding curve pricing model. Under this system, token prices increase exponentially with each purchase, which benefits creators and early buyers.<\/p>\n

According to the analysis, this model disadvantages later participants due to higher token prices and potential losses when creators liquidate their holdings.<\/p>\n

A separate report by Pine Analytics also highlighted<\/a> a practice known as deployer-funded, same-block sniping. This method allows creators to profit by executing trades within the same block as token deployment.<\/p>\n

Solidus Labs also examined Raydium, another major Solana-based DEX that uses traditional liquidity pools funded by token makers. Out of 388,000 pools analyzed, 361,000, or 93%, showed characteristics of soft rug pulls. This involved incidents where liquidity was suddenly withdrawn, causing price crashes.<\/p>\n

The financial damage from such cases varies. About 25% of the involved amounts were under $732. However, the median figure was about $2,832, while the largest one detected amounted to $1.9 million.<\/p>\n

Legal Troubles And Controversies<\/h2>\n

In January, Pump.fun was targeted by two class-action lawsuits. Both accused<\/a> the platform of violating U.S. securities laws by facilitating the launch of unregistered tokens and allegedly collecting up to $500 million in related fees.<\/p>\n

In December last year, it was forced to temporarily pause<\/a> its livestream function after token creators started making disturbing broadcasts to pump their coins. In the immediate aftermath, Pump.fun faced a $22 million revenue crash, with on-chain data showing weekly income nosediving.<\/p>\n

The post 98% of Tokens on Pump.fun Are Rug Pulls or Fraud: Report<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A new report from Solidus Labs has exposed a huge amount of what it calls \u201cfraudulent\u201d activity on the Solana blockchain. The findings revealed that 98.6% of tokens launched on Pump.fun could be classified as either rug pulls or pump-and-dump schemes. Solana: A Hotbed for Meme Coin Scams? In its report, the crypto surveillance firm […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-26164","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/26164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26164"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/26164\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}