A brand new report from Solidus Labs has uncovered an enormous quantity of what it calls “fraudulent” exercise on the Solana blockchain.
The findings revealed that 98.6% of tokens launched on Pump.enjoyable could possibly be categorized as both rug pulls or pump-and-dump schemes.
Solana: A Hotbed for Meme Coin Scams?
In its report, the crypto surveillance agency pointed to Solana’s low charges and user-friendly decentralized exchanges (DEX) as key the explanation why it has grow to be a hotspot for meme coin hypothesis.
“Traders beware because the Solana ecosystem continues to develop, it’s more and more turning into floor zero for memecoin fraud,” Solidus warned.
On the coronary heart of this progress is Pump.enjoyable, a Solana-based token-generating platform, which has seen every day buying and selling volumes exceed $100 million. In response to Solidus, this determine was primarily pushed by speculative meme coin exercise.
Between January 2024 and March 2025, over 7 million tokens had been deployed with a minimum of 5 trades every. Of those, solely 97,000 retained liquidity above $1,000. The report concludes that 98.6% of tokens on the platform collapsed into nugatory pump-and-dump schemes shortly after launch.
Earlier within the 12 months, CryptoPotato reported on a Pump.enjoyable person who created a minimum of 18,000 cash and netted greater than $3.7 million from fast worth pumps and strategic exits.
The platform lately launched an automatic market maker (AMM) that applies a bonding curve pricing mannequin. Underneath this technique, token costs improve exponentially with every buy, which advantages creators and early patrons.
In response to the evaluation, this mannequin disadvantages later contributors on account of increased token costs and potential losses when creators liquidate their holdings.
A separate report by Pine Analytics additionally highlighted a apply often called deployer-funded, same-block sniping. This technique permits creators to revenue by executing trades inside the similar block as token deployment.
Solidus Labs additionally examined Raydium, one other main Solana-based DEX that makes use of conventional liquidity swimming pools funded by token makers. Out of 388,000 swimming pools analyzed, 361,000, or 93%, confirmed traits of soppy rug pulls. This concerned incidents the place liquidity was all of a sudden withdrawn, inflicting worth crashes.
The monetary injury from such circumstances varies. About 25% of the concerned quantities had been underneath $732. Nonetheless, the median determine was about $2,832, whereas the biggest one detected amounted to $1.9 million.
Authorized Troubles And Controversies
In January, Pump.enjoyable was focused by two class-action lawsuits. Each accused the platform of violating U.S. securities legal guidelines by facilitating the launch of unregistered tokens and allegedly accumulating as much as $500 million in associated charges.
In December final 12 months, it was pressured to quickly pause its livestream operate after token creators began making disturbing broadcasts to pump their cash. Within the quick aftermath, Pump.enjoyable confronted a $22 million income crash, with on-chain information displaying weekly revenue nosediving.
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