PANews reported on May 8 that according to CoinDesk, a report by blockchain security company Solidus Labs revealed that fraudulent activities were rampant on the Solana blockchain, and the Pump.fun platform was the hardest hit. The report showed that 98.6% of the tokens issued by the platform were classified as "Rug Pull" or "Pump and Sell" scams. Since the establishment of the Pump.fun platform in January 2024, more than 7 million tokens have been issued, but only 97,000 have maintained liquidity of at least $1,000.
Pump.fun has become a hotbed for scammers due to its low-cost coin issuance. This year, there have been several major "Rug Pull" incidents, with MToken-related cases involving $1.9 million. On the decentralized exchange Raydium, "soft Rug Pull" is common, with 93% of liquidity pools experiencing slow withdrawals, and a median loss of $2,800 per transaction. The meme coin sector is also in chaos, with the Trumps' TRUMP and MELANIA tokens plummeting 87%-97%, while insider traders have made profits of more than $100 million.
