Pump.fun, a platform built on the Solana blockchain for streamlined token launches, has fallen victim to an apparent exploit resulting in significant losses.
Pump.fun, a platform built on the Solana blockchain for streamlined token launches, has fallen victim to an apparent exploit resulting in significant losses. The exploit involves the utilization of flash loans, allowing the attacker to acquire enough SOL (Solana's native cryptocurrency) to manipulate the bonding curve of Pump.fun memecoins. It is estimated that approximately $2 million has been lost as a result.
In response to the incident, Pump.fun has taken action to safeguard its protocol. The project has updated its contracts to prevent further fund drainage by the attacker. Pump.fun assures users that the total value locked in the protocol and wallets connected to the platform remain secure. The project is cooperating with law enforcement and other relevant parties in relation to the exploit.
Trading on the platform has been paused, meaning users are currently unable to buy or sell any coins. Additionally, any coins in the process of migrating to Raydium, a decentralized exchange on Solana, cannot be traded and will face an indefinite delay in migration. However, coins that have successfully left Pump.fun's bonding curve contracts and are locked as liquidity providers on Raydium are reported to be safe.
Pump.fun charges users approximately 0.02 SOL (equivalent to $3.16 at current prices) to create a new token. Solana's current price stands at $158.056, having experienced a 3.45% increase in the past 24 hours. Pump.fun recently achieved a record daily revenue of $1.23 million on May 14.
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