A new report by Solidus Labs paints a concerning picture of the Solana-based platform Pump.fun. It reveals that 98% of the tokens created on the platform since January 2024 are fraudulent, raising concerns about security and investor trust within the Solana ecosystem. This activity has resulted in significant financial losses for users, estimated at over $1.9 million, with a notable rug pull involving MToken highlighting the vulnerabilities associated with the platform. The report further details how these fraudulent activities stem from historical scams connected to Pump.fun’s co-founder, raising red flags about their repeated use of deceptive tactics on the Solana blockchain. The impact extends beyond financial losses, as this widespread fraud is also eroding market integrity and investor confidence within the memecoin landscape. Further investigation by Solidus Labs suggests that a staggering 98.6% of tokens created on Pump.fun fall into the categories of rug pulls or pump-and-dump schemes. To ensure greater transparency and security in the cryptocurrency space, experts recommend implementing stricter regulations to prevent such fraudulent activities.