Pump.fun Platform Faces $2 Million Loss
The Pump.fun platform, built on Solana, recently experienced a significant setback with a loss totaling $2 million. The assailant behind the attack utilized flash loans to obtain SOL, the native cryptocurrency of Solana, before moving onto Pump.fun meme coins. The breach of the bonding curve played a pivotal role in enabling this malicious act to occur.
Pump.fun has since taken steps to fortify its smart contracts in order to prevent further unauthorized access to funds. The platform has reassured users that all wallets associated with the platform and its underlying protocol remain secure. Additionally, Pump.fun has been cooperating closely with relevant authorities and stakeholders as they investigate this incident.
Trading Activities Halted
As a precautionary measure, all trading activities on the platform, including coin purchases and sales, have been temporarily suspended. Any coins currently being migrated to Raydium will not be available for trading indefinitely. This has resulted in a loss of approximately 12,300 SOL, equivalent to $2 million, for the platform, with the potential risk of a compromised private key looming.
One individual, identified as Stacc, has claimed responsibility for the breach, citing personal gratification rather than financial gain as the primary motivator behind the cybercrime. Pump.fun’s commitment to security and transparency has been demonstrated through its rigorous token creation process, which aims to eliminate the possibility of “rug pulls” within the platform.
Token Minting Process Explained
Users on Pump.fun have the ability to mint tokens for as little as a nominal fee, facilitating equitable access to the platform’s offerings. By selecting a token and utilizing the bonding curve, users can participate in token creation. For instance, a token priced at $69,000 would utilize $12,000 of its liquidity for depositing into Raydium, subsequently resulting in the burning of the token.
For each new token created at a price of $3.16, Pump.fun receives approximately 0.02 SOL. Furthermore, the recent uptick in SOL’s value has been notable, with the cryptocurrency trading at $158.056, marking a 3.45% increase in value. This has translated into substantial revenue generation for Pump.fun, with daily earnings amounting to $1.23 million, culminating in a total revenue of $669,000 as of May 15, 2024.
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