#eviteGolpes 98% of the memecoins on Pump.fun are scams or frauds, report points out

Pump.fun, a cryptocurrency generator based on Solana, saw its daily trading volume exceed US$ 100 million, primarily driven by speculation on memecoins. However, investigators point out that a large part of this value is the result of fraudulent activities.

Earlier this year, a single user of Pump.fun created around 18 thousand coins, obtaining US$ 3.7 million with pump-and-dump strategies. This practice involves artificially inflating the price of tokens to sell them quickly before they crash, leaving the last buyers at a loss.

In an attempt to modernize its business model, Pump.fun recently launched an automated market maker (AMM) with a bonding curve pricing system. This technology causes the token price to rise exponentially with each purchase, benefiting early investors. However, as the value increases, the last participants face significant losses when the creators sell their holdings.