There is a up-to-date method used by scammers that surprises Solana (SOL) owners Pump.Fun Platform, leading to significant losses. Under the pseudonym “Short Form King,” the crypto researcher sheds lithe on this up-to-date trend and exposes the tactics used by these scammers.
Growing threat to Solana owners
Recent social media post Tiny Form King reveals that the scammers behind common schemes have developed a up-to-date method that can go unnoticed by most people, making it especially effective and harmful to unsuspecting Solana owners.
According to Tiny Form King, scammers operate “well-developed” meme coins and “experienced teams” to create the illusion of a regular coin, fooling even experienced traders.
The researcher cites the example of NOFEAR, a recent token that attracted a lot of attention thanks to the endorsement of key opinion leaders (KOLs). However, the project turned out to be fraudand its value plummeted after the team manipulated the supply.
Given the growing popularity and widespread operate of these crimes to identify potential frauds, Tiny Form King highlights several red flags that investors should look out for.
First, the lack of comments or engagement in the “thread” section under the coin on the Solana-based meme coin trading platform Pump.fun indicates that the coin was not listed well before the bond curve is complete, which is an initial indicator of malicious intent.
Additionally, Tiny Form King notes that the “Transactions” section on Pump.fun platforms contains crucial information often missed by 90% of investors once the coin hits major decentralized exchanges (DEXs).
Unusual buying patterns, without corresponding sell orders and narrow trading history can also indicate an ongoing carpet pullback process. Furthermore, the lack of previous Pump.fun coins or any significant track record is an obvious sign that the coin may be susceptible to removing carpets.
How Scammers Outsmart 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 (NFTs).
They reportedly operate “money laundering” services like Solnado or fund their accounts from multiple “unrelated centralized exchanges,” creating the illusion of separate individuals.
Tiny Form King points out that these accounts typically see minimal activity until all funds are combined into one wallet and ultimately a “carpet pull” occurs, resulting in significant losses for Solana investors.
At the time of writing, SOL is trading at $162, having erased all losses on all time frames after hitting a two-month low of $121 in early July. The fifth-largest cryptocurrency in the market is currently posting gains of 5% and 10% on the 24-hour and monthly time frames.
Featured image from DALL-E, chart from TradingView.com
