Report Reveals 98.6 Percent of Solana Meme Coins on Pump.fun Are Fraudulent

The wild west of meme coins on Solana just got hit with a reality check. A new report by blockchain analytics firm Solidus Labs has revealed that nearly all tokens launched on Pump.fun — the Solana-based meme coin factory — exhibit signs of fraudulent behavior.

According to the report, titled “2025 Rug Pull Report,” an alarming 98.6 percent of tokens on Pump.fun and 93 percent of Raydium’s liquidity pools show patterns associated with pump-and-dump schemes and soft rug pulls.

It’s one of the most damning analyses of a mainstream blockchain ecosystem to date.

The Numbers Tell a Grim Story

The research analyzed over seven million tokens created on Pump.fun from January 2024 to March 2025.

Key findings:

• Fewer than 100,000 tokens maintained liquidity above one thousand dollars
• Most projects had no long-term utility or community
• Pump.fun’s bonding curve pricing model favors creators while exposing late buyers to steep losses

As Solidus Labs explains, this model pushes token prices higher with each buy — benefiting early entrants while punishing later ones.

Raydium Liquidity Pools Not Spared

Raydium, one of Solana’s top decentralized exchanges, is also under fire.

Solidus Labs reviewed 388,000 liquidity pools and found that:

• 93 percent showed signs of soft rug pulls
• Median loss per exit scam was two thousand eight hundred dollars
• One notable rug pull resulted in a loss exceeding one point nine million dollars

These scams typically involve developers pulling liquidity after luring buyers, leaving them with worthless tokens.

Why Is This Happening on Solana?

Solana’s low fees and high throughput make it a hotspot for experimentation — and unfortunately, exploitation.

Meme coin projects can be spun up in seconds, promoted via social media, and dumped before any meaningful community forms. The frictionless nature of Solana, while great for scalability, has also made it a magnet for quick-hit scams.

The report suggests Solana’s ecosystem is experiencing “systemic abuse” of DeFi infrastructure, particularly where token launch platforms lack guardrails or audits.

Legal Heat Is Rising

This isn’t just bad PR — it’s becoming a legal liability.

Regulatory reactions include:

• The SEC and DOJ naming crypto scams as a top enforcement priority
• New York State proposing laws to criminalize code-based fraud in March 2025
• A class action lawsuit accusing Solana DEX Meteora of facilitating a sixty-nine million dollar rug pull

In April 2025, the Department of Justice issued a warning: crypto platforms may face fines or even executive-level criminal liability if they fail to act against on-platform fraud.

Platforms Urged to Act

Solidus Labs has called on all crypto exchanges and token launchpads to integrate real-time fraud detection tools. Recommendations include platforms like:

• Token Sniffer
• GoPlus
• Honeypot.is

These tools can:

• Flag suspicious token distribution
• Identify unlocked or migratable liquidity
• Detect unusual trading patterns early

The report’s message is clear: If platforms don’t regulate themselves, regulators will do it for them.

Impact on Solana’s Reputation

Solana has long been hailed for its speed and affordability, but these benefits now come with serious trade-offs.

As meme coins continue to dominate headlines, the ecosystem faces growing scrutiny not just from regulators but from investors, developers, and partner institutions. Without swift action, this unchecked environment could erode the chain’s credibility and long-term value.

Key Takeaways

• Ninety-eight percent of meme coins on Pump.fun are likely fraudulent, says Solidus Labs
• Raydium liquidity pools showed rampant soft rug activity
• Low fees and ease of deployment have made Solana fertile ground for scams
• Regulators are responding with new legislation and enforcement efforts
• Platforms are being warned: adopt monitoring tools or face the consequences

Final Word: Solana’s Meme Coin Boom Faces a Harsh Reality Check

This report is not a warning — it’s a red alert.

While Solana continues to dominate retail enthusiasm, its meme coin scene is now officially one of the riskiest corners of the blockchain world. The challenge ahead is clear: either implement real safeguards or risk losing the trust of the broader crypto community.

The next phase of growth won’t just be about speed — it’ll be about responsibility.