Most people have probably heard of @pumpdotfun, a popular Solana platform that simplifies the process of creating and launching new tokens.
Since its debut in Jan 2024, the platform has quickly gained traction by allowing users to effortlessly create and trade meme coins with minimal effort.
PumpFun is constantly evolving and gaining more features over time.
Moreover, the platform is quite profitable, with a significant volume of transactions occurring daily.
However, here’s the thing:
The majority of tokens on PumpFun end up getting rug-pulled, as scammers have started using even more advanced schemes, deceiving even experienced users.
First step: scammers create a meme coin and pump it
A new deployer wallet is set up, funded via a CEX or mixer, showing no past activities.
Purchases happen from dozens, then hundreds of distinct wallets, each funded by Elusiv or Solnado.
These wallets, appearing as legitimate buyers, operate independently on PumpFun.
Second step: scammers are very clever at tricking bubblemaps
Bubblemaps is the first supply auditing tool for DeFi tokens and NFTs.
This tool allows you to investigate wallets, uncover connections, and interpret blockchain data noise.
But what’s interesting is that on @bubblemaps, where people usually detect rug pulls and supply manipulation, the token will seem completely legitimate.
There won’t be any shady wallet links or large amounts clustered in the control of a single person.
Third step: scammers promote the token and manipulate its trading volume
As the token achieves a significant market cap and moves to Raydium, they hire a few KOLs to start promoting it.
They keep engaging in wash-trading to fabricate volume, boosting the token into the trending section on DEX Screener.
Final step: rug execution
Scammers gather all the tokens into one wallet and dump it.
Typically, they wait until liquidity is high before dumping, extracting far more than what was invested in influencers and fake trades.
how to spot these rugs?
You should keep an eye out for these warning signs:
➬ There is repeated wash-trading on DEX with identical transaction amounts.
➬ Most buyers show no prior interactions with PumpFun: 0 likes, 0 followers, 0 coins held.
➬ Most buyers’ wallets are funded from an unknown CEX or mixers on the same day the coin is launched, and their first transaction involves that very coin.
➬ Minimal activity on the PumpFun page and comments section appears botted, with an unusual number of holders.
