In recent times, the rise of meme coins and experimental tokens on Solana has opened up exciting opportunities, but also new forms of abuse. Among the most common and damaging practices is what's known as a rug pull. This refers to a deceptive tactic where token creators suddenly abandon the project, often by draining liquidity or dumping large amounts of tokens, which causes the token's value to crash. As a result, users are left holding tokens that are essentially worthless.
Rug pulls typically follow a few recognizable patterns. One common tactic is the sudden removal of liquidity from decentralized exchanges. When this happens, users can no longer trade the token, effectively trapping their funds. Another method involves token dumping, where insiders or developers sell off large amounts of tokens in a short time, leading to a sharp price collapse.
These projects often share other red flags as well. Most provide no meaningful utility or development roadmap, relying instead on hype, memes, and aggressive social media promotion to gain attention. Additionally, the teams behind such tokens are frequently anonymous or difficult to verify, making it nearly impossible to hold them accountable once the rug pull occurs.
This report focuses on analyzing these types of exploitative behaviors, specifically within the context of token launches on Pump.fun, a platform where such patterns have become increasingly visible.
Pump.fun is a user-friendly platform built on Solana that lets anyone launch a meme coin or speculative token in just a few clicks—no coding or technical knowledge required. Its appeal lies in the simplicity and speed it offers, allowing tokens to go live within seconds. As a result, it has quickly gained popularity among users looking to experiment with meme-driven markets or engage in high-risk trading.
The platform operates using a bonding curve model, where the token price increases as more people buy it. To launch a token, users pay a small fee (typically around 0.02 SOL). Once created, the token is automatically listed and begins trading through the bonding curve instead of a traditional liquidity pool like those found on Uniswap. This design removes the need for setting up or managing liquidity manually, which lowers the barrier to entry for creators.
However, this ease of access also introduces serious risks. Since anyone can create a token instantly, the platform has become a breeding ground for low-effort or malicious projects. It's common to see tokens that follow a familiar pattern—launch, attract buyers through hype, and then crash as the creator quickly sells their allocation for profit. In many cases, these rug-pull behaviors occur within minutes or hours of launch.
While some users approach Pump.fun as a form of entertainment or speculative gambling, it's important to recognize the high-risk environment it creates. For investors and participants, extreme caution is advised.
The research aims to bring clarity, transparency, and insights into how these deployers operate. Here's what the task focuses on: