A new report from Solidus Labs casts a shadow over the hugely popular Pump.fun platform. According to the analysis, 98.6% of all tokens launched there since early 2024 are fraudulent. Think of the classic rug pull or pump-and-dump schemes, where tokens skyrocket in value and then plummet as soon as the creators cash out their profits.
What is Pump.fun?
Pump.fun is a platform built on the Solana network. It allows users to launch a new token with a single click. Thanks to extremely low costs and an automated trading system based on a bonding curve, the price of a token increases automatically with each purchase. This makes it attractive for quick profits, especially for those purchasing and creating tokens for the first time.
But accessibility is also the big issue. Between January 2024 and March 2025, more than seven million tokens were created through Pump.fun. Only 97,000 of them managed to maintain a minimum liquidity of $1,000 after the initial trading phase.
How do crypto scams work?
Many fraudulent projects use a tactic in which they create their own tokens, buy them immediately to drive up the price, and then sell their holdings at high prices within minutes. This strategy is reinforced by block sniping, where trading takes place in the same block as the launch. This can almost only be done by the creator himself.
An extreme example: a Pump.fun user managed to earn over $3.7 million with no less than 18,000 different tokens by skillfully applying these tactics.
Solidus Labs also analyzed Raydium, a large decentralized exchange on Solana. There, 93% of the 388,000 liquidity pools analyzed showed signs of a soft pullback: a gradual withdrawal of liquidity, after which the price plummets.
Legal pressure on the Solana platform
For its part, Pump.fun is under scrutiny in the United States. In January, two lawsuits were filed for potential violations of securities laws. In the process, the platform allegedly earned up to $500 million in commissions. Previously, it had to temporarily suspend livestreams because some token creators were misusing them for dubious promotions.
The report highlights the risks of low-level token platforms. Investors remain vigilant in this highly speculative corner of the cryptocurrency world.
