The Dark Side of Solana: 98% of Tokens on Pump.fun Exposed as Scams!

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Solidus Labs just dropped a bombshell: 98.6% of tokens launched on Pump.fun, the so-called “token creation paradise” on Solana, are either outright scams or tangled in shady business. But wait, it gets worse—Raydium isn’t off the hook either.

In a world where even a toddler can create a token in minutes, Pump.fun has become the ultimate playground for digital tricksters. What a surprise, right?

Hold Your Wallet: Scams Are Pouring In on Pump.fun

Solidus Labs, the self-proclaimed watchdog of the blockchain world, just unveiled a detailed report on the state of Solana platforms. Since its dazzling debut in January 2024, Pump.fun has birthed over 7 million tokens. Now, let’s pause for a moment and appreciate that only 97,000 of these tokens have managed to stay afloat with a liquidity of at least $1,000. That’s right—less than 1.4% are worth anything. 👏

But the real kicker? 98.6% of tokens on the platform are flagged as scams or have been involved in fraudulent activities. Take, for example, MToken, one of the most colossal frauds uncovered by Solidus Labs, leading to losses of up to $1.9 million. How charming. 😒

And because no blockchain drama is complete without a dose of high-profile critique, Ethereum’s Vitalik Buterin has stepped in, calling out platforms like Pump.fun and FTX for their damaging speculations.

“good (in different ways): railgun, farcaster, polymarket, signal. bad (in different ways): pump.fun, Terra/Luna, FTX. The differences in what the app does stem from differences in beliefs in developers’ heads about what they are here to accomplish,” shared Buterin

Raydium’s Soft Rug Pulls: A Tale of 93% Deceit

But the misery doesn’t end there—enter Raydium. Solidus Labs found that a staggering 93% of the 361,000 liquidity pools on Raydium show signs of “soft rug pulls.” This sneaky little scam is where developers quietly withdraw liquidity over time, leaving investors holding the bag. 😅

Sure, the amounts might look insignificant—around $732 for some, with the median rug pull around $2,832. But when you add up the sheer volume of these scams, you’ve got yourself a rather nasty epidemic. Oh, and did I mention the biggest rug pull was a cool $1.9 million?

Both Pump.fun and Raydium, sitting comfortably on the Solana blockchain, are prime hunting grounds for criminals. Solana’s fast, cheap transactions have made it a magnet for scammers looking to make a quick buck.

And let’s not forget, Pump.fun’s “create-a-token-in-5-minutes” approach has inadvertently made it the scammer’s utopia. 🎉

But don’t throw in the towel on Solana just yet. Despite its obvious flaws, the blockchain still hosts a ton of legitimate projects. Platforms like Raydium are vital to Solana’s DeFi ecosystem, pulling in billions in monthly trading volume. So, there’s that. 🤑

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2025-05-09 16:58