According to CoinDesk, a report by blockchain security company Solidus Labs reveals rampant fraudulent activities on the Solana blockchain, with the Pump.fun platform being a major hotspot. The report indicates that 98.6% of the tokens issued on this platform are classified as "Rug Pull" or "pump and dump" scams. Since the establishment of the Pump.fun platform in January 2024, over 7 million tokens have been issued, but only 97,000 tokens have maintained liquidity of at least $1,000.

Pump.fun has become a breeding ground for fraudsters due to its low-cost token issuance feature. Several major "Rug Pull" incidents have occurred this year, with cases related to MToken involving amounts up to $1.9 million. On the decentralized exchange Raydium, the phenomenon of "soft Rug Pull" is prevalent, with 93% of liquidity pools exhibiting slow withdrawal characteristics, with a median loss of $2,800 per incident. The meme coin sector is also rife with chaos, as tokens TRUMP and MELANIA, once promoted by the Trump couple, have plummeted by 87%-97%, while insider traders have profited over $100 million.