A new investigation by crypto surveillance firm Solidus Labs has unveiled alarming levels of fraud on the Solana blockchain, particularly tied to the popular token-launch platform Pump.fun. According to the report, 98.6% of tokens created on Pump.fun are classified as rug pulls or pump-and-dump scams, raising major concerns about investor safety in the memecoin ecosystem.
Solidus Labs attributes this surge in fraudulent activity to Solana’s low fees and easily accessible decentralized exchanges (DEXs), which have made it an attractive environment for scam developers. The platform’s rising popularity has resulted in daily trading volumes topping $100 million—driven largely by speculative and short-lived meme coin activity.
Between January 2024 and March 2025, over 7 million tokens were deployed on Pump.fun. Of those, only about 97,000 maintained liquidity over $1,000. The vast majority collapsed shortly after launch, fulfilling the classic pattern of rug pulls.
Pump.fun’s bonding curve AMM model also came under scrutiny, with the report claiming it favors early buyers and creators—often at the expense of latecomers. Additionally, practices like same-block sniping and sudden liquidity withdrawals on Raydium, another Solana-based DEX, were highlighted as systemic risks.
Legal issues continue to mount for Pump.fun, which faces lawsuits for allegedly violating U.S. securities laws and raking in an estimated $500 million in fees. The platform also made headlines after disturbing livestream incidents triggered a $22 million revenue dip.
As the Solana ecosystem grows, the report serves as a stark warning to investors: fraud and manipulation are rampant, and caution is critical.
