A bot has recorded profits worth $6.8 million snipping meme coins on Solana-based platform Pump.fun. In the same vein, the platform is presently receiving a lot of backlash due to the misuse of its livestream features. Reports claim that criminals are now using the feature, which was originally designed for crypto projects, to carry out various scams.
Meme coins are currently witnessing an upward momentum, with most of them riding Bitcoin’s wave since it started. The cumulative market cap of the tokens is around $120 billion, spurred by the rise of assets like Dogecoin (215%) and Pepe (123%) over the last month.
Bot nets $8.6 million in profits on Pump.fun
According to data by Lookonchain, the bot initially earned 27,000 Solana over 30 days. The profit, worth about $6.8 million was made by sniping several meme coins. The data also revealed that the bot also used 1.75 SOL to purchase 58 million FRIC tokens, selling it for 1,646 SOL and making a profit of $418,000 in the process. The bot claimed a 943 return from that singular trade.
The bot had also bought 57 million FATHA tokens using 2 SOL, and sold the tokens for 4,456 SOL, signifying an increase of 2,227%, with a profit of $1.12 million. The bot uses two addresses, sniping the tokens with one, and sending the profits to another wallet. The bot had also initially taken 27,000 SOL in profits, sending 19,000 from the cache to OKX to sell for profits.
The activities of these meme coins on Solana have affected the platform’s token, gaining a visible surge over the last few days. According to trading data, Solana is up by 49% over the last 30 days, and it is presently trading at $250. The recent surge propelled the token to hit a new all-time high of $263 on November 23, before settling at its present value.
Pump.fun under fire over the use of its livestream features
Pump.fun has been embroiled in several controversies, especially with complaints related to the use of its livestream features. According to reports, users claim that scammers are now using it for bad acts and harmful activities. Users said that these acts also include several threats of self-harm, often tied to market cap goals.
In a recent incident, a developer threatened to harm himself if his token didn’t reach the $25 million market cap by a certain time frame, showcasing the misuse of the platform. It has also raised alarm within the community. In another case, a 13-year-old who created the Quant token raised about $30,000 before the rug pulled the community. Although measures were taken to help, the tokens became useless.
After the rug pull, the boy and his family were doxxed online. Meanwhile, there has been growing turmoil in the crypto community over these incidents. While some demand that the platform should be shut down, others have called for softer measures like disabling the livestream feature for the time being. The incidents also show how easy it is to scam people using these livestream features, showing that traders need to be careful.