PANews reported on May 8, according to CoinDesk, that a report from blockchain security company Solidus Labs revealed rampant fraudulent activities on the Solana blockchain, with the Pump.fun platform being a hard-hit area. The report showed that among the tokens issued on this platform, 98.6% were classified as 'Rug Pull' or 'Pump and Dump' scams. Since the establishment of the Pump.fun platform in January 2024, over 7 million tokens have been issued, but only 97,000 tokens have maintained a liquidity of at least 1,000 USD.
Due to the low-cost token issuance characteristics of Pump.fun, it has become a breeding ground for scammers. This year, multiple major 'Rug Pull' incidents have occurred, with the amount involved in MToken-related cases reaching 1.9 million USD. On the decentralized exchange Raydium, the phenomenon of 'soft Rug Pull' is common, with 93% of liquidity pools exhibiting slow withdrawal characteristics, resulting in a median loss of 2,800 USD per instance. The meme coin sector is also rife with chaos, as the TRUMP and MELANIA tokens, which were promoted by the Trump couple, plummeted by 87%-97%, while insider traders reaped over 100 million USD in profits.
