Bitrabo Editorial
A new deceptive method has emerged, causing significant losses for Solana (SOL) holders on the Pump.fun platform. Referred to as “Short Form King,” a crypto researcher sheds light on this new scam and reveals the tactics employed by these fraudsters.
New Threat to Solana Holders
Recently, Short Form King’s social media post unveils scammers’ latest scheme, designed to go undetected by most people’s research, making it highly effective and harmful to unsuspecting Solana holders.
According to Short Form King, scammers use well-designed meme coins and experienced teams to create a façade of a legitimate coin, fooling even seasoned traders.
The researcher highlights the case of NOFEAR, a token that gained attention due to endorsements from key opinion leaders but turned out to be a scam, causing its value to plummet after supply manipulation.
To help identify potential rug pulls, Short Form King points out several warning signs for investors to watch for.
Firstly, a lack of engagement in the thread section on the Pump.fun platform may indicate malicious intent, along with unusual buying patterns and limited trading history.
Short Form King also mentions that the Trades section on Pump.fun holds crucial information often overlooked by investors, such as new coins on major decentralized exchanges.
He also notes that the absence of prior Pump.fun coins or relevant experience could signal vulnerability to rug pulls.
How Scammers Avoid Detection on Platforms Like Bubblemaps
The researcher suggests that fraudsters manipulate their profiles to evade detection by auditing tools like Bubblemaps. They may use services like Solnado to create fake activity or fund accounts from multiple unlinked centralized exchanges to appear unrelated.
These accounts remain dormant until all funds are consolidated into one wallet for the rug pull, resulting in substantial losses for Solana investors.
Currently, SOL is trading at $162, recovering from a recent low of $121 in early July. As the fifth-largest cryptocurrency, it shows gains of 5% and 10% in the 24-hour and monthly time frames.
Featured image from DALL-E, chart from TradingView.com