A new method used by scammers has emerged, taking Solana (SOL) holders by surprise. Pump.fun Platform, leading to significant losses. Under the pseudonym “Short Form King,” a cryptocurrency researcher sheds light on this new trend and exposes the tactics used by these scammers.
Growing threat to Solana shareholders
A recent x.com/retentionjunkie/status/1812974161368871390″ target=”_blank” rel=”noopener nofollow”>social media post Short Form King reveals that the scammers behind common schemes have come up with a new method that manages to slip under the radar of most people’s research processes, making it particularly effective and damaging to unsuspecting Solana holders.
According to Short Form King, scammers use “well-crafted” meme coins and “experienced teams” to create the illusion of a regular coin, fooling even the most experienced traders.
The researcher cites the example of NOFEAR, a recent token that garnered a lot of attention due to the backing of key opinion leaders (KOLs). However, the project turned out to be a failure. scamand its value plummeted after the team manipulated the bid.
Given the growing popularity and common use of these crimes to identify potential scammers, Short Form King highlights several red flags that investors should be on the lookout for.
Firstly, the lack of comments or participation in the “thread” section below the coin on the Solana-based meme coin trading platform Pump.fun indicates that the coin was not list for a long time before completing its binding curve, serving as an initial indication of malicious intent.
Furthermore, Short Form King points out that the “Trading” section on Pump.fun platforms contains crucial information, which is often overlooked by 90% of investors once the coin hits major decentralized exchanges (DEXs).
Unusual buying patterns, with no corresponding sell orders and limited trading history, can also indicate that a rug pull is taking place. Furthermore, the absence of previous Pump.fun coins or any relevant experience serves as a clear indication that a coin may be vulnerable to carpet strip.
How scammers trick platforms like Bubblemaps
The researcher also claims that scammers often manipulate their profiles to avoid detection by platforms such as Bubblemaps, an auditing tool for decentralized finance (DeFi) tokens and non-fungible tokens (nft).
They allegedly employ “laundering” services like Solnado or fund their accounts from multiple “unlinked centralized exchanges,” creating the illusion of separate individuals.
Short Form King highlights that these accounts typically show minimal activity until they combine all funds into a single wallet to finally execute the rug pull, leaving primarily Solana investors with substantial losses.
At the time of writing, SOL is trading at $162, erasing all losses across all timeframes after hitting a two-month low of $121 in early July. Currently, the fifth-largest cryptocurrency on the market is posting gains of 5% and 10% across both the 24-hour and monthly timeframes.
Featured image of DALL-E, chart from TradingView.com
