A consumer created practically 18,000 tokens through memecoin launchpad Pump.enjoyable, raking in nearly $3.8 million in earnings from trades, in accordance to Conor Grogan, head of product enterprise operations at Coinbase.
Grogan highlighted that this consumer creates a median of 12 tokens per hour till he goes to mattress and repeats the method the next day.
In line with a Dune Analytics dashboard by consumer Evelyn233, the pockets’s first mint on Pump.enjoyable occurred on Nov. 6, 2024. This pockets is the biggest token deployer on the launchpad.
Notably, the pockets has a 55.57% win price on its roughly $6.8 million in trades, leading to $3.76 million in earnings.
If Pump.enjoyable creates a local token and rewards customers with an airdrop, Grogan estimates that this pockets would make eight figures from the occasion.
Rug pull business
Though Grogan acknowledges the usage of bots on Pump.enjoyable to create tokens, he believes the work completed with this pockets is guide, citing its inactive intervals.
He shared:
“I dont suppose its a bot given its inactive at sure occasions! Perhaps a bot working together with a human(s).”
Moreover, Grogan suspects that creating many tokens is worthwhile and that this tactic will likely be used extra as folks notice its effectiveness.
A consumer recognized as Artemis commented that this follow is already acquainted, calling it a “rug farm.” They shared a pockets that created 44,591 tokens on the Ethereum (ETH) layer-2 blockchain Base, profiting $600,000 inside 150 days. Artemis estimated that 177.39 ETH was stolen from 9,256 customers.
Artemis added that scammers drain the liquidity from a token in lower than a minute after a major funding or if there aren’t any consumers. They confirmed a token with liquidity drained 26 seconds after a consumer invested 0.99 ETH for instance.
Moreover, as unhealthy actors revenue, they improve the liquidity within the swimming pools to make their tokens look extra authentic.
Artemis concluded:
“It’s attention-grabbing, that rugs are nearly normalized within the business. Whereas protocol hackers are being prosecuted for stealing related quantities, rugpullers appear to by no means face the justice.”
