As a seasoned crypto analyst with years of experience in the industry, I have witnessed the evolving tactics used by fraudsters to exploit unsuspecting investors. The recent incident involving Solana holders and the Pump.fun platform is a stark reminder of the importance of due diligence and vigilance in this space.
A cryptocurrency scam has surfaced unexpectedly, targeting Solana (SOL) investors on the Pump.fun site, resulting in substantial financial damages. Anonymous crypto analyst “Short Form King” provides insights into this emerging scheme and reveals the deceptive strategies employed by these swindlers.
Rising Threat To Solana Holders
Scam artists have come up with a novel approach in their latest social media ploy, which has so far eluded the detection of many people’s investigation efforts. This stealthy strategy poses a significant risk to unaware Solana token holders.
Based on Short Form King’s findings, scammers use meticulously designed meme coins and skilled teams to mislead both novice and experienced traders, disguising potentially fraudulent schemes as typical cryptocurrencies.
A researcher brings up NOFEAR as a notable case, having gained significant buzz thanks to influential figures in the industry endorsing it. Regrettably, this project was later exposed as a fraud. The value of NOFEAR nosedived once its creators tampered with the token’s supply.
As a savvy crypto investor, I’m constantly on the lookout for potential scams in the market, especially those known as “rug pulls.” To help my fellow investors avoid falling victim to these schemes, I’d like to share some warning signs that Short Form King has identified. Keep an eye out for:
The absence of user interaction or comments beneath a coin’s thread on the Pump.fun trading platform, which is built on Solana and specializes in meme coins, could suggest that the coin was recently listed and quickly reached its peak value, raising suspicions of deceitful intentions.
Moreover, according to Short Form King, the “Trades” area in Pump.fun’s platforms is significant and frequently disregarded by 90% of investors after a coin gets listed on prominent decentralized exchanges (DEXs).
As a researcher studying cryptocurrency markets, I’ve come across an intriguing observation: unusual buying patterns without corresponding sell orders and a limited trading history could potentially indicate the early stages of a “rug pull” scam. A rug pull is when a group of individuals manipulate the market to artificially inflate the price of a coin before selling it off, leaving unsuspecting investors with worthless tokens. Additionally, if I come across a coin with no prior history of being listed on Pump.fun or any other reputable trading platform and no relevant experience from its developers, I would exercise extreme caution as such coins may be particularly susceptible to rug pulls.
How Fraudsters Outsmart Platforms Like Bubblemaps
A researcher additionally posits that deceptive actors may alter their profiles to evade detection on platforms like Bubblemaps, a monitoring tool designed for the decentralized finance (DeFi) and non-fungible token (NFT) markets.
It is rumored that they utilize “washing” services such as Solnado or independently source funds for their accounts from various decentralized exchanges, giving an appearance of distinct users.
As a researcher studying the behavior of certain crypto accounts on the Solana network, I’ve observed an intriguing pattern. These accounts tend to exhibit limited transaction activity until they consolidate all their funds into one wallet. It is only then that they carry out what is referred to as a “rug pull.” Regrettably, this action often results in significant losses for Solana investors.
As I pen this down, Solana (SOL) is currently transacting at a price of $162, recovering completely from its two-month low of $121, which it touched in early July. At present, the cryptocurrency occupying the fifth position in the market is registering increases of 5% and 10% within the last 24 hours and the past month respectively.
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2024-07-17 14:12