Solidus Labs Exposes Widespread Fraud on Solana
In its new 2025 Rug Pull Report, blockchain analytics firm Solidus Labs has dropped a bombshell: a staggering 98.6% of tokens launched on Pump.fun and 93% of liquidity pools on Raydium show clear signs of fraudulent activity—ranging from pump-and-dump schemes to rug pulls. The investigation examined over 7 million tokens minted on Pump.fun from January 2024 to March 2025. Of those, less than 100,000 had more than $1,000 in liquidity, suggesting that nearly all tokens were financial traps with little to no staying power.
Bonding Curve Exploits Leave Retail Investors Holding the Bag
Pump.fun uses a bonding curve pricing model, where token prices climb rapidly with each purchase. According to the report, this model heavily favors token creators, enabling early sell-offs at massive profits while leaving late buyers stuck with worthless tokens. Raydium, another key decentralized exchange (DEX) in the Solana ecosystem, isn’t faring much better. Of 388,000 liquidity pools reviewed, 93% were "soft rug pulls"—developers simply withdrew liquidity, leaving users high and dry.
Regulators Turn Up the Heat on Crypto Scams
U.S. regulators are already reacting. The SEC’s Cyber Unit and the DOJ’s Crypto Task Force have placed rug pulls and smart contract fraud under their enforcement spotlight. The DOJ’s April memo warned that platforms enabling fraud could face fines or executive prosecution. In March 2025, New York State lawmakers proposed a bill to criminalize rug pulls as code-based fraud, while class action lawsuits have hit Solana DEXs like Meteora, accused of facilitating a $69 million scam.
Tools Like Token Sniffer Could Help—But Few Use Them
Solidus Labs recommends platforms and users adopt on-chain monitoring tools like Token Sniffer, which can detect suspicious tokenomics, such as:
- Concentrated token ownership.
- No time-locked liquidity.
- Non-renounceable contract privileges.
Despite the availability of such tools, awareness and usage remain low, especially among retail investors chasing fast gains in meme coin markets.
Meme Coin Mania Carries Real Consequences
While Solana’s low fees and speed make it a meme coin magnet, that same accessibility is becoming a double-edged sword. The report concludes that without clear security standards and enforcement, platforms like Pump.fun may continue to serve as breeding grounds for micro-fraud at scale.
