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 might be labeled 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 turn into a hotspot for meme coin hypothesis.
“Buyers beware because the Solana ecosystem continues to develop, it’s more and more changing 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 each day buying and selling volumes exceed $100 million. In keeping with Solidus, this determine was primarily pushed by speculative meme coin exercise.
Between January 2024 and March 2025, over 7 million tokens have been deployed with at the very least 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 yr, CryptoPotato reported on a Pump.enjoyable person who created at the very least 18,000 cash and netted greater than $3.7 million from fast value pumps and strategic exits.
The platform lately launched an automatic market maker (AMM) that applies a bonding curve pricing mannequin. Below this technique, token costs enhance exponentially with every buy, which advantages creators and early patrons.
In keeping with the evaluation, this mannequin disadvantages later contributors because of greater token costs and potential losses when creators liquidate their holdings.
A separate report by Pine Analytics additionally highlighted a observe referred to as deployer-funded, same-block sniping. This technique permits creators to revenue by executing trades inside the identical 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 sentimental rug pulls. This concerned incidents the place liquidity was immediately withdrawn, inflicting value crashes.
The monetary injury from such instances varies. About 25% of the concerned quantities have been beneath $732. Nevertheless, the median determine was about $2,832, whereas the most important 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 gathering as much as $500 million in associated charges.
In December final yr, it was compelled to quickly pause its livestream perform after token creators began making disturbing broadcasts to pump their cash. Within the rapid aftermath, Pump.enjoyable confronted a $22 million income crash, with on-chain information exhibiting weekly earnings nosediving.
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