Report finds 98.6% of Solana meme coins on Pump.fun are fraudulent

A recent analysis by blockchain analytics firm Solidus Labs revealed that 98.6 percent of tokens launched on Solana’s (CRYPTO:SOL) Pump.fun platform showed signs of fraudulent activity.

The report, titled “2025 Rug Pull Report,” examined over 7 million tokens created between January 2024 and March 2025.

Researchers found that fewer than 100,000 of these tokens maintained liquidity above $1,000, indicating that the vast majority were illiquid or manipulated.

Pump.fun’s bonding curve pricing model, which causes token prices to rise exponentially with each purchase, was identified as a mechanism that disproportionately benefits token creators while exposing late investors to significant losses.

Similar issues were found on Raydium (CRYPTO:RAY), a decentralised exchange on Solana.

Out of 388,000 liquidity pools analysed on Raydium, 93 percent exhibited patterns consistent with “soft rug pulls,” where developers abruptly withdraw liquidity.

Median losses per incident were estimated at $2,832, with some cases involving losses exceeding $1.9 million.

These schemes typically trap traders who buy into pools before liquidity is removed.

Regulatory bodies are increasing their focus on such crypto scams.

The U.S. Securities and Exchange Commission’s Cyber and Emerging Technologies Unit and the Department of Justice have prioritised prosecuting fraud, including rug pulls.

In March 2025, New York State lawmakers proposed legislation to criminalise code-based fraud in crypto projects.

A class action lawsuit also accused Solana DEX Meteora of facilitating a $69 million rug pull.

The DOJ issued an enforcement memo in April 2025 warning that crypto platforms could face fines or executive liability if they fail to address fraud risks.

Solidus Labs recommended that crypto firms implement monitoring tools like Token Sniffer to detect risks such as concentrated token holdings or unlocked liquidity.

At the time of reporting, the Solana (SOL) price was $162.62.