According to a report from Pine Analytics, token issuers on Pump.fun have funded "sniper" wallets to buy back their own meme coins, manipulating the market. This behavior has affected over 15,000 token releases, accounting for 1.75% of the total activity on the platform. The sniper wallets purchase tokens immediately upon release and sell them quickly, creating fake demand. This disadvantages retail investors and erodes trust in the platform. Pine Analytics found that around 50% of releases involved sniper wallets, but detecting and preventing this behavior remains challenging. Analysts recommend building a transparent on-chain culture to address the issue long-term.

Source: https://x.com/PineAnalytics/status/1914301091337953734