Bots Manipulating Solana’s Meme Coin Market – Here’s How
The post Bots Manipulating Solana’s Meme Coin Market – Here’s How appeared on BitcoinEthereumNews.com. Data on Dune suggests a hidden layer of manipulation using trading bots in the booming Solana meme coin launchpad, Pump.fun. Pump.fun pioneered the Solana meme coin market. However, rival launchpads are emerging, and the market will face growing competition over time. Bot-Driven Volume on Solana’s Pump.fun Tokens? Analysts describe how “Proxies” are flooding Pump.fun token markets with volume-farming bots. High-frequency trades seem to be faking momentum to exploit retail traders’ fear of missing out (FOMO). On-chain data, which tracks the bots in action, presents these bots as proxies acting as standard market participants. Specifically, they execute dozens of small trades on new token launches, often within seconds, creating the illusion of surging interest. Based on the data, these bots generate 60–80% of trading volume on some Pump.fun tokens. Total volume vs Bot volume on Pump.fun. Source: Naveen on X The result is a self-reinforcing feedback loop, where fake volume sparks real FOMO. This fuels price pumps, which the bots can exploit for exit liquidity. DeFi researcher Naveen, in a post on X (Twitter), called this practice “Proxy Paradox.” He cited broader implications, noting that the practice artificially distorts market signals and undermines the reliability of volume-based indicators. Further, it potentially leads to unsustainable price movements. To some, however, the influx of bot-driven trades stress-tests Solana’s scalability and adds temporary liquidity. Meanwhile, critics warn that it jeopardizes the ecosystem’s long-term health. Sustainability Concerns Beneath the Meme Coin Mania Elsewhere, the meme coin sector is growing. Pump.fun, once Solana’s dominant launchpad, is losing ground. BeInCrypto reported that the platform’s market share is slipping amid rising competition from new launchpads. LetsBonk has gained momentum by offering faster listings, better user engagement, and broader developer participation. Solana daily tokens launch, cumulative tokens launched per launchpad. Source: BeInCrypto Dashboard on Dune This evolution comes during…
The post Bots Manipulating Solana’s Meme Coin Market – Here’s How appeared on BitcoinEthereumNews.com.
Data on Dune suggests a hidden layer of manipulation using trading bots in the booming Solana meme coin launchpad, Pump.fun. Pump.fun pioneered the Solana meme coin market. However, rival launchpads are emerging, and the market will face growing competition over time. Bot-Driven Volume on Solana’s Pump.fun Tokens? Analysts describe how “Proxies” are flooding Pump.fun token markets with volume-farming bots. High-frequency trades seem to be faking momentum to exploit retail traders’ fear of missing out (FOMO). On-chain data, which tracks the bots in action, presents these bots as proxies acting as standard market participants. Specifically, they execute dozens of small trades on new token launches, often within seconds, creating the illusion of surging interest. Based on the data, these bots generate 60–80% of trading volume on some Pump.fun tokens. Total volume vs Bot volume on Pump.fun. Source: Naveen on X The result is a self-reinforcing feedback loop, where fake volume sparks real FOMO. This fuels price pumps, which the bots can exploit for exit liquidity. DeFi researcher Naveen, in a post on X (Twitter), called this practice “Proxy Paradox.” He cited broader implications, noting that the practice artificially distorts market signals and undermines the reliability of volume-based indicators. Further, it potentially leads to unsustainable price movements. To some, however, the influx of bot-driven trades stress-tests Solana’s scalability and adds temporary liquidity. Meanwhile, critics warn that it jeopardizes the ecosystem’s long-term health. Sustainability Concerns Beneath the Meme Coin Mania Elsewhere, the meme coin sector is growing. Pump.fun, once Solana’s dominant launchpad, is losing ground. BeInCrypto reported that the platform’s market share is slipping amid rising competition from new launchpads. LetsBonk has gained momentum by offering faster listings, better user engagement, and broader developer participation. Solana daily tokens launch, cumulative tokens launched per launchpad. Source: BeInCrypto Dashboard on Dune This evolution comes during…
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