High level of scam on Pump.fun

Solidus Labs specializes in risk monitoring in the blockchain. The company released a detailed report on the state of certain platforms on the Solana blockchain. According to the report, Pump.fun has issued more than 7 million tokens since its launch in January 2024. However, only 97 thousand of these tokens maintained liquidity of at least $1,000. This is less than 1.4% of the total number of tokens.

Even more concerning is that 98.6% of the tokens issued on the platform have been identified as scams or show signs of fraudulent trading. One of the largest frauds identified by Solidus Labs was MToken. It caused losses of up to $1.9 million.

Ethereum co-founder Vitalik Buterin recently criticized platforms like Pump.fun and FTX for promoting speculation and harmful practices.$ETH $SOL $BNB