The meme coin frenzy of 2024 has created both new opportunities and significant risks for the crypto market, warn experts from blockchain security auditor Hacken.

While some projects genuinely pursued innovation, many turned out to be rug-pull scams designed to exploit unsuspecting investors. By capitalizing on social media influence and blockchain tools, these schemes manipulated the market for fraudulent gain.

Solana: A Hotspot for Rug Pull Activity

In 2024, Solana became a key platform for rug-pull scammers, leveraging its low transaction fees and lightning-fast network speed.

With tools like Pump.fun, more than 4 million tokens were launched on the platform. The reason? A straightforward token creation process requiring minimal effort or technical expertise, making it accessible to virtually anyone.

This ease of access naturally attracted malicious developers, who issued meme coins specifically designed for rug pulls. The strategy is familiar: developers generate hype around a new coin while retaining a significant portion of the supply. Once interest peaks and new investors flood in, they dump their holdings, leaving users with worthless tokens devoid of any real value.

Many of these scams played out in mere minutes or hours. While individual losses varied, the collective damage to the crypto community was profound.

“Pump.fun not so fun,” Hacken remarks. Source: hacken.io

Presales: A Rising Concern

In 2024, presale scams became a notable problem. In April alone, 27 schemes tied to Solana-based meme coins were identified, causing losses exceeding $122.5 million. These scams have become a major source of financial harm in the cryptocurrency market.

Scammers used a variety of deceptive tactics to attract investors. Many presales were marked by a lack of transparency, inflated promises, and the sudden disappearance of funds shortly after the sales ended.

Celebrity-Endorsed Rug Pulls

In 2024, celebrity-endorsed rug pulls became a troubling trend. Public figures leveraged their influence to promote meme coins, attracting large audiences and inflating market capitalizations, only for the tokens to experience dramatic crashes soon after.

Notable examples include:

Jason Derulo promoted the token JASON, which dropped 70% shortly after launch.
Caitlyn Jenner launched the token JENNER, which fell by 65% within hours.
Hailey Welch, best known as "Hawk Tuah Girl," introduced the token HAWK. Its market cap reached $490 million before collapsing by over 90%.

Celebrity-Endorsed Rug Pulls: The Scammers’ Jackpot of 2024. Source: hacken.io

These projects, backed by “star power” instead of transparency, misled investors and caused significant financial losses.

Addressing the Problem

The rise of rug pulls and fraudulent meme coins underscores the pressing need for enhanced investor education and stricter regulatory oversight. According to Hacken experts, market participants must become adept at spotting red flags, including excessive token concentration in developers' hands, overly ambitious promises, and a lack of transparency.

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