A new report by Solidus Labs reveals a concerning trend on the Solana blockchain. The firm found that 98.6% of tokens launched on Pump.fun, a platform based in Solana’s ecosystem, could be classified as rug pulls or pump-and-dump schemes. This alarming statistic highlights Solana’s popularity as a hotbed for meme coin fraud. The report attributes this trend to the low fees and user-friendly decentralized exchanges (DEX) that have made Solana attractive for speculative activity. 7 million tokens were deployed on Pump.fun between January 2024 and March 2025, with only 97,000 remaining with liquidity above $1,000, signifying the majority of tokens collapsed after launch into worthless schemes. Pump.fun’s platform features an automated market maker (AMM) that uses a bonding curve model. This method benefits creators and early buyers through exponential token price increase but disadvantages later participants who face higher prices and potential losses when creators liquidate their holdings. 25% of the affected funds were under $732, while the median figure was around $2,832, with the largest one detected reaching $1.9 million. Adding to this issue, Pump.fun faced legal action in January for alleged violations of US securities laws and was forced to pause its livestream function due to creators making unethical broadcasts aimed at boosting their tokens. This ultimately resulted in a $22 million revenue crash.