A report by Solidus Labs has revealed the alarming scale of fraudulent exercise on the Solana blockchain, with 98.6% of tokens launched on Pump.enjoyable being chalked down as rug pulls or pump-and-dump schemes.
Greater than seven million tokens have been issued on Pump.enjoyable since its inception in January 2024, with simply 97,000 of these sustaining at the very least $1,000 in liquidity, the report added.
Pump.enjoyable is a token creation platform that lets customers challenge new crypto tokens on the Solana blockchain at a really low value.
Chart exhibiting Pump.enjoyable quantity (Solidus Labs)
The biggest rug pull Solidus Labs recognized over the time interval was price $1.9 million and was associated to MToken.
While the crypto business has progressed and moved on following the spectacular implosion of FTX, hacks and scams are nonetheless rife with unhealthy actors embezzling tens of millions of {dollars} price of property by capitalizing on retail greed.
The memecoin sector is the best instance of that, with 10s of 1000’s of bogus tokens being created daily. The hype round memecoin reached a crescendo in January when U.S. President Donal Trump touted his personal TRUMP memecoin on social media. Shortly after the U.S. First Woman Melania Trump promoted MELANIA, each tokens are actually down by 87% and 97% respectively, with a cabal of insiders reportedly profiting greater than $100 million by shopping for the token earlier than it was publicly out there.
In the meantime, on decentralized trade Raydium, Solidus Labs discovered that 93% of liquidity swimming pools (361,000 swimming pools) exhibited comfortable rug pull traits, with the median rug pulls price $2.8K.
In February, a Merkle Science report revealed that $500 million had been misplaced to rug pulls and scams in 2024.
Solana has emerged as a well-liked blockchain amongst criminals and scammers. Its near-zero charges and prompt execution make it straightforward to deploy tokens and extract worth.
Regulators are conserving a watchful eye over the sector. In March, the SEC arrange a Cyber and Rising Applied sciences unit designed to “root out these looking for to misuse innovation to hurt buyers and diminish confidence in new applied sciences.”
The regulator filed a category motion lawsuit in opposition to Meteora in April, naming people related to the M3M3 meme coin, alleging that they had been accountable for a $69 million rug pull.
