98.6% of Tokens on Pump.fun Classified as Rug Pulls or Frauds
A report by Solidus Labs highlights significant fraudulent activity on the Solana blockchain, indicating that 98.6% of tokens launched on Pump.fun are categorized as rug pulls or pump-and-dump schemes.
- Over seven million tokens issued on Pump.fun since January 2024
- Only 97,000 tokens maintain at least $1,000 in liquidity
- The largest identified rug pull was worth $1.9 million related to MToken
- 93% of liquidity pools on Raydium exhibit soft rug pull characteristics, with a median value of $2.8K
- $500 million lost to rug pulls and scams in 2024, according to Merkle Science
- Solana's low fees and instant execution attract criminals
- SEC established a Cyber and Emerging Technologies unit to monitor misuse of innovation
- Class action lawsuit filed against Meteora for a $69 million rug pull linked to M3M3 meme coin
