98% pump token. FUN is carpet pull or fraud: Report

A new report by Solidus Labs exposed a lot of so-called “fraudulent” activity on the Solana blockchain.

The findings show that 98.6% of tokens fired on the pump can be classified as carpet tension or pumping and lowering schemes.

Solana: A hotbed of meme coin scams?

Crypto Monitoring Company noted in its report that Solana’s low fees and user-friendly decentralized exchanges (DEXs) are key reasons why it has become a hot spot for meme coin speculation.

“As the Solana ecosystem continues to grow, investors should beware that it is increasingly becoming the ground of zero for Memecoin fraud,” Solidus warned.

At the heart of this growth is Pump.Fun, a Solana-based token generation platform with over $100 million in daily trading volume. According to Solidus, the number is driven primarily by speculative meme coin activity.

Between January 2024 and March 2025, more than 7 million tokens were deployed, each of which was at least five transactions. Of these, only more than 97,000 have liquidity of more than US$1,000. The report concluded that 98.6% of tokens on the platform were poured into worthless pumps and rainfall plans shortly after release.

Earlier this year, Cryptopotato reported a pump. FUN users have created at least 18,000 coins and earned over $3.7 million in revenue from fast price pumps and strategic exports.

The platform recently launched an automated market maker (AMM), an automated curve pricing model. Under this system, the token price increases exponentially with each purchase, which benefits creators and early buyers.

According to the analysis, later participants of the model were later absent due to the high token price and the potential losses the creator had when liquidated his holdings.

Another report by Pine Analytics also highlights a practice of the same block sniping called Deployer-funded. This approach allows the creator to profit by executing transactions within the same block as the token deployment.

Solidus Labs also checked out Raydium, another major Solana-based DEX that uses a traditional liquidity pool funded by token manufacturers. Of the 388,000 pools analyzed, 361,000 or 93% showed characteristics of soft carpets. This involves an incident of sudden withdrawal of liquidity, leading to a price collapse.

Financial losses vary in this case. About 25% of the related amount is less than $732. However, the median figure is about $2,832, while the largest figure is $1.9 million.

Legal troubles and disputes

In January, Pump.Fun was targeted by two class action lawsuits. Both accused the platform of violating U.S. securities laws, promoting the launch of unregistered tokens and allegedly charging up to $500 million in related fees.

It was forced to temporarily stop its live broadcast feature last December after the token creator began making disturbing broadcasts to pull out coins. In a close second, pump.fun faces a $22 million revenue crash, with on-chain data showing insufficient weekly revenue.