A new report by blockchain analytics firm Solidus Labs reveals that 98.6% of tokens launched on Solana’s Pump.fun and 93% of liquidity pools on Raydium exhibited signs of fraudulent activity, including pump-and-dump schemes and rug pulls.
Report Exposes 98.6% of Solana Meme Coins on Pump.fun as Fraudulent
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Solana’s Low Fees Fuel Explosion of Meme Coin Fraud, Research Shows
The findings, detailed in Solidus Labs’ “2025 Rug Pull Report,” highlight systemic risks within Solana’s meme coin ecosystem. Researchers analyzed over 7 million tokens on Pump.fun between January 2024 and March 2025, finding that fewer than 100,000 maintained liquidity above $1,000. The platform’s bonding curve model, which exponentially raises token prices with each purchase, disproportionately benefits creators while leaving late investors vulnerable to losses.
Raydium, another leading Solana decentralized exchange, faced similar issues. Of 388,000 liquidity pools examined, 93% showed patterns of “soft rug pulls,” where developers abruptly withdrew funds. Median losses per incident totaled $2,832, with one case exceeding $1.9 million. Such schemes exploit traders who buy into pools before liquidity vanishes.
Regulators are escalating scrutiny. The SEC’s Cyber and Emerging Technologies Unit and the DOJ have prioritized prosecuting crypto scams, including rug pulls. New York State lawmakers proposed legislation in March 2025 to criminalize code-based fraud, while a class action lawsuit accused Solana decentralized exchange ( DEX) Meteora of enabling a $69 million rug pull.
Crypto institutions face mounting legal and reputational risks. The DOJ’s April 2025 enforcement memo warned platforms could face fines or executive liability if they fail to mitigate fraud. Solidus Labs urged firms to adopt monitoring tools like Token Sniffer, which flags risks such as concentrated token holdings or unlocked liquidity.
