Introduction
Solana (SOL) holders are facing a new threat from scammers using a fresh rug pull method on the Pump.fun platform. This scam has led to significant losses for many investors. A crypto researcher, known as “Short Form King,” has exposed these tactics to help others avoid falling victim.
Rising Threat to Solana Holders
A social media post by Short Form King warns that scammers have developed a new method that is difficult to detect. This scam flies under the radar of most people’s research processes, making it especially dangerous for unsuspecting Solana holders.
How Scammers Deceive Investors
According to Short Form King, scammers use “well-crafted” meme coins and “experienced teams” to create the appearance of legitimate coins. Even seasoned traders can be fooled by these tactics.
The researcher gives the example of NOFEAR, a recent token that got a lot of attention due to endorsements from key opinion leaders (KOLs). However, it turned out to be a scam. The value of NOFEAR plummeted after the team manipulated the supply.
Red Flags to Watch For
Short Form King highlights several red flags that investors should be aware of to identify potential rug pulls.
- Lack of Comments or Engagement: If the “thread” section under a coin on Pump.fun has no comments or engagement, it may indicate that the coin was not listed for long before the scam was executed. This can be a sign of malicious intent.
- Unusual Buying Patterns: The “Trades” section on Pump.fun platforms holds crucial information. Unusual buying patterns, such as no corresponding sell orders and limited trading history, can indicate a rug pull in progress.
- Absence of Previous Experience: The absence of previous Pump.fun coins or relevant experience is a clear sign that a coin may be vulnerable to rug pulls.
Avoiding Detection by Platforms Like Bubblemaps
Scammers also avoid detection by platforms such as Bubblemaps, an auditing tool for decentralized finance (DeFi) tokens and non-fungible tokens (NFTs). They manipulate their profiles using “washing” services like Solnado or fund their accounts from multiple “unlinked centralized exchanges,” creating the illusion of separate individuals.
Execution of the Rug Pull
Scammers often show minimal activity on their accounts until they combine all the funds into a single wallet to execute the rug pull. This leaves Solana investors with substantial losses.
Current Market Status
At the time of writing, SOL is trading at $162. This represents a recovery from a two-month low of $121 in early July. Currently, Solana is the fifth-largest cryptocurrency on the market, with gains of 5% and 10% in the 24-hour and monthly time frames, respectively.
Protecting Your Investments
To protect your investments, always do thorough research before investing in any coin. Look for signs of legitimacy, such as active community engagement and transparent trading history. Be wary of new coins with little to no background information or those heavily promoted by KOLs without substantial backing.
Conclusion
The new rug pull scam targeting Solana holders is a serious threat. By understanding the tactics used by scammers and being vigilant for red flags, you can better protect your investments. Always stay informed and cautious in the volatile world of cryptocurrency trading.
Key Takeaways
- New Scam Method: Scammers have developed a new rug pull method that is difficult to detect, targeting Solana (SOL) holders on the Pump.fun platform.
- Deceptive Tactics: They use well-crafted meme coins and experienced teams to create the illusion of legitimate coins, deceiving even seasoned traders.
- Example of NOFEAR: The NOFEAR token, endorsed by key opinion leaders (KOLs), turned out to be a scam after the team manipulated the supply.
- Red Flags: Lack of comments or engagement, unusual buying patterns, and absence of previous experience are red flags indicating a potential rug pull.
- Avoiding Detection: Scammers manipulate profiles using washing services and multiple unlinked centralized exchanges to avoid detection by auditing tools like Bubblemaps.
- Execution of Rug Pull: Minimal account activity until all funds are combined into a single wallet to execute the rug pull, leading to substantial losses for investors.
- Market Status: SOL is currently trading at $162, recovering from a two-month low and posting gains in the 24-hour and monthly time frames.
- Protecting Investments: Thorough research, looking for signs of legitimacy, and being wary of new coins without background information are crucial for protecting investments.
By staying informed and vigilant, investors can navigate the risky landscape of cryptocurrency and safeguard their assets from emerging threats.
