A recent report by Solidus Labs has disclosed that a high percentage of tokens issued on Pump.fun, a well-known token creation platform on Solana, are involved in scams or fraudulent activities, totaling 98.6%. Similar issues have also been identified on Raydium, a prominent decentralized exchange on Solana.

Solidus Labs, a company specializing in blockchain risk monitoring, published an extensive report on the situation of certain platforms within the Solana blockchain. According to the report, Pump.fun has introduced over 7 million tokens since its inception in January 2024. Shockingly, only 97,000 of these tokens, constituting less than 1.4% of the total, have maintained a liquidity level of at least $1,000.

The findings reveal that a significant number of tokens issued on Pump.fun are deemed as scams or exhibit fraudulent trading signals, with one large scam involving MToken leading to losses of up to $1.9 million.

In a separate discovery, Solidus Labs found that 93% of Raydium's 361,000 liquidity pools display "soft rug pull characteristics," indicating a form of scam where developers slowly withdraw liquidity, resulting in investor losses.

Vitalik Buterin, the co-founder of Ethereum, criticized platforms like Pump.fun and FTX for endorsing speculative and harmful practices. Despite these challenges, Solana continues to show promise as a blockchain platform hosting numerous legitimate projects. Platforms such as Raydium play a crucial role in Solana's DeFi ecosystem, with monthly trading volumes reaching billions of dollars.