A bot made over $6.5 million in profits by snipping memecoins on the Solana-based memecoin generator platform, Pump.fun. In the meantime, the platform is in the line of fir for its livestream feature. While it was initially meant to promote projects, it has now reportedly become a hub for dangerous content and financial scams.
Memecoins have gained momentum riding the high of Bitcoin’s upward run. The cumulative market cap of meme cryptos stands at $120 billion, as prominent tokens like Dogecoin (DOGE) and Pepe rallied by 215% and 123% over the past 30 days, respectively.
Bot snipes $6.8M in memecoins
Per data first shared by Lookonchain, a bot allegedly earned 27,000 Solana (worth $6.8 million) by sniping multiple memecoins over the past month. In its latest move, the bot spent 1.75 SOL to buy 58.57 million FRIC tokens. It then sold the token for 1,646 SOL and made a $418K profit, claiming a huge 943x return.
Earlier, the bot spent around 2 SOL to buy 57 million FATHA tokens and later sold them for 4,456 SOL. This trade fetched more than $1.12 million worth of profits, a 2,227x return.
The sniping bot is operating with two addresses, “orcACR…TCc8” for sniping, and it transfers profits to “orcAbs…NJMb.” The sniping bot had moved 27,000 Solana in profits and deposited 19,000 (approx $4.5 million) into OKX for selling and cashing out the funds.
Solana recorded a high surge as Pump.fun and tokens created from the platform gained prominence in the market. SOL price is up by 49% in the last 30 days and trading at an average price of $250 as of press time. It knocked the all-time high of $263.83 on November 23, 2024.
Pump.fun faces backlash
Pump.fun is surrounded by controversy for its livestreaming feature being misused for harmful activities and financial scams. The new feature has reportedly been exploited for extreme behavior, including self-harm threats tied to market cap goals.
In a recent incident, a developer threatened self-harm if their crypto didn’t hit a $25 million market cap. Such cases have raised alarms within the community.
In another case, the teenage creator of QUANT coin amassed $30K before pulling the plug which left investors with worthless tokens. The rug pull led to the doxxing of the young creator and their family online.
Meanwhile, the crypto community stands divided as some demand Pump.fun’s shutdown, while others call for targeted measures like disabling livestreams.
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