Unleashing a New Wave of Token Creation
A groundbreaking development has taken place in the world of cryptocurrencies, as a user leveraged the memecoin launchpad Pump.Fun to mint nearly 18,000 tokens. This strategic move resulted in an impressive profit of almost $3.8 million from trades, according to insights shared by Conor Grogan, a Director at Coinbase.
The Token Creation Phenomenon
- The user engaged in creating an average of 12 tokens per hour, persisting until bedtime and resuming the process the next day.
- Wallet’s first mint on Pump.fun recorded on Nov. 6, 2024, establishing it as the primary token deployer on the launchpad.
- The wallet boasts a remarkable 55.57% win rate, generating profits of $3.76 million from trades totaling approximately $6.8 million.
The Potential of Native Token Airdrops
With the speculation of Pump.fun introducing a native token and rewarding users with an airdrop, Grogan predicts that this prolific wallet stands to make a substantial eight-figure sum from the event.
Rug Pull Industry Insights
Grogan sheds light on the use of bots on Pump.fun for token creation but suggests that the wallet’s operations are predominantly manual due to noticeable inactive periods.
“I don’t think it’s a bot given its inactive at certain times! Maybe a bot working in conjunction with a human(s).”
Furthermore, the practice of creating numerous tokens for profit is gaining traction, with Artemis highlighting a similar scenario termed as a “rug farm.” This deceptive tactic involves draining liquidity from tokens, leaving investors in the lurch and resulting in significant losses.
The Deceptive Tactics Unveiled
- Artemis showcases a wallet that generated 44,591 tokens on the Ethereum layer-2 blockchain Base, amassing profits of $600,000 within 150 days.
- Scammers swiftly drain liquidity from tokens following substantial investments, leaving investors high and dry.
- Rug pullers increase liquidity in pools to create a facade of legitimacy for their tokens, perpetuating the cycle of deception.
The Industry’s Double Standards
“It’s interesting that rugs are almost normalized in the industry. While protocol hackers face consequences for their actions, rug pullers often escape justice.”