PANews reported on May 20th that according to BeInCrypto, Dune blockchain analysis platform data shows that Pump.fun, a meme coin issuance platform on the Solana chain, has extensive trading bot market manipulation. These bots create false liquidity through high-frequency small transactions, accounting for 60%-80% of some token trading volumes, forming a "proxy paradox" phenomenon - false trading volumes trigger retail FOMO emotions, thereby driving up prices to facilitate bot cash-out.
Analysts point out that such operations distort market signals, rendering volume-based indicators ineffective. Although this brings short-term stress testing and temporary liquidity to the Solana network, it may harm ecosystem health in the long term. Meanwhile, Pump.fun is facing challenges from emerging competitors like LetsBonk, which are capturing market share through faster token listing and developer engagement. Solana's Q1 2025 report shows that despite network revenue growth and decreased fees, DeFi total locked value (TVL) is declining, exposing sustainability concerns behind the meme coin frenzy.
