Pump.fun, a Solana-based platform, has made headlines after a trading bot made a whopping $6.8 million by hunting down memecoins. While memecoins like Dogecoin and Pepe have seen massive gains, the platform has been facing criticism for exploiting its new features for malicious activity and financial scams.
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Huge profits by hunting meme coins
According to Lookonchain data, the bot managed to make profits of 27,000 Solana ($6.8 million) over the past month through advanced sniping strategies.
In one transaction, the bot invested 1.75 SOL to buy 58.57 million FRIC tokens, later selling them for 1,646 SOL, making a profit of $418,000 at a return rate of 943x.
In another transaction, the bot bought 57 million FATHA tokens for 2 SOL and later sold them for 4,456 SOL, recording a profit of $1.12 million at a return rate of 2,227x.
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How the robot works
The bot works using two primary addresses to execute sniping operations and transfer profits. It transferred around 27,000 SOL to exchanges like OKX, of which it deposited 19,000 SOL (equivalent to $4.5 million) to cash out the profits.
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Pump.fun: A platform under the microscope
Despite its success in bringing meme coins to light, Pump.fun has faced heavy criticism for misusing its live streaming feature. While the feature was originally intended to support startups, it has become a tool for malicious activity and scams.
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Examples of harmful behaviors:
1. Threats of self-harm: The platform has seen disturbing instances, including one developer threatening to harm himself if his market token did not meet its $25 million target.
2. Scams: A young QUANT creator exploited the feature to raise $30,000 before pulling out, leaving investors with worthless tokens.
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Division within the cryptocurrency community
These incidents have drawn mixed reactions, with some calling for Pump.fun to be shut down entirely, while others have suggested addressing specific issues, such as disabling the live streaming feature.
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Solana and Meme Coins Market Rise
Amidst these events, Solana and Pump.fun-related tokens saw significant gains. SOL surged 49% in 30 days, reaching a high of $263.83.
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conclusion
Between the bot's massive financial success and the ethical controversy surrounding the platform, the Pump.fun case is a microcosm of what happens every day.
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