On the Solana community, Pump.fun has created an easy way for non-technical users to create memecoins - something that has become a way to make quick

Pump.fun exploit means potential loss of millions in Solana funds

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2024-05-16 19:00:13

On the Solana community, Pump.fun has created an easy way for non-technical users to create memecoins - something that has become a way to make quick bucks and to transact in user-created memecoins. You used to be able to launch a memecoin in under 2 minutes.

Now, however, the site is being attacked, and the funds apparently being distributed by the attacker with many Twitter accounts reporting that they received amounts of a few hundred Solana. The Phantom Wallet is now warning against the Pump.fun website, and people on Solana communities are being warned against connecting to Pump.fun.

The way pump.fun worked was that if a memecoin got $70,000 in purchases, it could burn its funds on deposit to Raydium and be exchanged like any other. Some prominent memecoins like $HOBBES, which reached a $120mn market cap at one point before dumping down to a $500k market cap got started there. There are community posts where it's mentioned that pumping and dumping was the main claimed use of Pump.fun - something the attacker alluded to as well.

Trying to access pump.fun currently leads to an application error. It's possible that the site will come back up but as of May 16th, trading was paused and it was impossible to access user funds.