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Solana’s Pump.fun Loses $2 Million in Shocking Insider Exploit

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On May 16, at 15:21 UTC, pump.fun, a meme coin creation platform in the Solana (SOL) ecosystem, was exploited. The incident resulted in a loss of approximately 12,300 SOL, worth nearly $2 million at current market prices.

The attacker manipulated the platform using flash loans from Margin.fi to obtain SOL and buy the pump.fun tokens without using their own funds. This recent exploitation has sent shockwaves through the crypto community.

From Insider to Attacker: The Pump.fun Security Breach

Initially identified by the wallet address 7ihN8QaTfNoDTRTQGULCzbUT3PHwPDTu5Brcu4iT2paP, the attacker exploited pump.fun by purchasing all the tokens of new projects launched on the platform within minutes. This action pushed the bonding curve to its limit.

In the decentralized finance (DeFi) sector, the bonding curve is a smart contract that creates a market for tokens without relying on crypto exchanges. Therefore, as intended, the manipulation prevented the tokens from listing on Raydium DEX, a decentralized exchange in Solana.

Read more: Top 5 Flaws in Crypto Security and How To Avoid Them

Flash Loan Exploitation by pump.fun's Attacker.
Flash Loan Exploitation by pump.fun’s Attacker. Source: Solscan

In response to the attack, pump.fun upgraded its contracts to prevent further exploitation. Furthermore, the team paused trading and assured users that the protocol’s total value locked (TVL) was safe.

“We are committed to ensuring the safety of our users and are cooperating with relevant parties, including law enforcement, to minimize the damage,” the team stated.

Interestingly, the attacker was a former employee of pump.fun—Jarrett, better known by the pseudonym STACCOverflow. Jarrett expressed his dissatisfaction with the company on social media, stating his intent to disrupt the platform.

“The kind of horrible bosses that witness you wreck your hand, ask you what happened, you said the glass table got you, and they go ‘is that table ok?’ is not the type of people you want front and center as the face of blockchain,” Jarrett wrote following the attack.

He clarified that he has a plan and wants to “change the course of history.” Moreover, he stated that he is not worried about going to jail.

In a separate post, Jarrett also stated that he would distribute his loot through an airdrop among various communities, including Slerf, Stacc, Saga, and Risklol. Due to his decision to do the airdrop, some in the crypto community have called him the “Web3 Robinhood.”

Around five hours after its initial announcement, pump.fun published a post-mortem. They redeployed contracts and resumed trading with 0% fees for the next seven days. They also committed to seeding liquidity pools (LPs) for affected coins to restore trading functionality.

Read more: Crypto Project Security: A Guide to Early Threat Detection

“Coins that reached 100% between 15:21 – 17:00 UTC are in limbo, meaning that no one can trade them until LPs are deployed for them on Raydium. To make users whole, the pump.fun team will seed the LPs for each affected coin with an equal or greater amount of SOL liquidity than the coin had at 15:21 UTC within the next 24 hours. […] Solana sh*tcoins are back, and greater than ever,” the pump.fun team wrote.

While pump.fun claimed it has already returned, the crypto community must remain vigilant. Some scammers try to take advantage of the incident by masquerading as the pump.fun team and sharing malicious links claiming to be reimbursement links.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.





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Don’t Fall for These Common Crypto Scams

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ZachXBT, a well-known blockchain investigator, recently shared two key “minimum checks” on Telegram to avoid crypto scams.

He emphasized that users must accept full financial responsibility if they take risks in these situations and added that recovering lost funds would be extremely difficult.

Evaluating a Project’s Credibility is Crucial

ZachXBT highlighted two critical scenarios: depositing funds into forked DeFi protocols on newly launched EVM chains and getting scammed by projects with few smart followers on Kaito.

“If you make either of these decisions, it is your own personal choice to risk funds, and I will NOT help you,” ZachXBT stressed.

Many newly launched DeFi protocols on EVM chains are replicas of existing ones. Their teams often do not create original code but instead, fork from established protocols. This process requires minimal technical skills yet introduces significant security risks.

A recent incident highlighted the risks in the DeFi space. The DeFi protocol SIR.trading was reportedly hacked, leading to an estimated loss of $350,000. Despite the project’s documentation promoting it as a “new DeFi protocol for safer leveraged trading,” it acknowledged the risks related to smart contract vulnerabilities.

This case illustrates how new DeFi protocols often become targets for hackers. Additionally, in late March, the DeFi lending protocol Abracadabra suffered a loss of approximately $13 million due to an exploit involving collateralized tokens.

The second situation ZachXBT warned about involves getting “rugged” (falling victim to a rug pull) by projects with few smart followers on Kaito. Kaito is an AI-powered analysis tool that measures real community interest. He advised that checking followers’ numbers and quality is a basic step to avoid falling for projects that use fake engagement or empty marketing hype.

Investor Xero agreed with ZachXBT, stating that Kaito can be a credibility assessment tool.

“Kaito has become an amazing security and reputation tool that I value over others. It can help you identify an impersonator or a new rug project fast. If a 40k+ follower project isn’t connecting with real smart followers, it’s not legit,” Investor Xero commented.

Other Emerging Crypto Scams

In addition to ZachXBT’s warnings, several new scam tactics have recently been flagged.

Investor Jerome warned about a scheme that exploits browsers’ automatic download function to trick users into downloading malicious software.

Another method involves scammers creating and sending small transactions. They would be often as little as 0.001 tokens—using fake wallet addresses that closely resemble legitimate ones. Their goal is to deceive users into copying and pasting the fraudulent address when making future transactions.

Additionally, Microsoft has identified StilachiRAT, a new remote access trojan specifically designed to target cryptocurrency wallets and login credentials.

According to a Chainalysis report, from 2021 to 2024, decentralized finance (DeFi) platforms have been the primary targets of crypto hacks.

Amount of Funds Stolen by Victim Platform Type. Source: Chainalysis
Amount of Funds Stolen by Victim Platform Type. Source: Chainalysis

The report explains that DeFi platforms may be more vulnerable because developers prioritize rapid growth and launch over security measures. This lack of security focus makes them prime targets for hackers.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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This Is How Dogecoin Price Reacted To Elon Musk’s Comment

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Dogecoin has faced a series of setbacks recently, including a failed breakout attempt that led to a decline in its price. This downward movement was further exacerbated by a recent comment from Elon Musk, which cast doubt on Dogecoin’s future. 

However, despite these challenges, the altcoin is showing some signs of recovery, largely driven by long-term holders (LTHs) who accumulate more DOGE at current low prices.

Dogecoin Is Facing Mixed Signals

Dogecoin’s Network Value to Transaction (NVT) ratio has spiked significantly, reaching a three-month high. This suggests that the network’s value does not match the number of transactions, pointing to a possible lack of investor confidence. 

Elon Musk’s recent comment regarding DOGE further fueled the discourse surrounding the cryptocurrency. He clarified that the US government does not intend to use Dogecoin in any form, which led to some negative sentiment. This statement dampened expectations for the coin, although it hasn’t completely derailed its market standing.

Dogecoin NVT Signal.
Dogecoin NVT Signal. Source: Glassnode

The macro momentum of Dogecoin shows signs of stabilizing, as evidenced by the recent spike in the HODLer Net Position Change. LTHs have been actively accumulating DOGE during the recent dip, which indicates strong conviction among these holders.

This accumulation provides a level of support, potentially helping the coin recover and preventing further price declines. The increased position change suggests that LTHs are confident in the long-term viability of Dogecoin despite recent market turbulence and Musk’s controversial comment.

This continued accumulation by LTHs could lead to a floor forming under Dogecoin’s price, providing a buffer against further bearish pressures. As the market stabilizes and sentiment shifts, these holders could become a driving force that will trigger the next upward movement.

Dogecoin HODLer Net Position Change
Dogecoin HODLer Net Position Change. Source: Glassnode

DOGE Price Stumbles, But Can It Recover?

Dogecoin is currently trading at $0.163, with the price just below the support level of $0.164. Over the last five days, the coin has experienced a 16% decline following a failed attempt to break through the $0.198 resistance level. This failure to breach key resistance levels indicates that DOGE may not experience immediate price gains without external catalysts.

Given the current market conditions, it’s likely that Dogecoin will not experience significant declines in the near future. The coin may reclaim $0.164 as support and continue consolidating just below the $0.198 resistance. However, this consolidation could persist until stronger market cues emerge to push the price higher.

Dogecoin Price Analysis.
Dogecoin Price Analysis. Source: TradingView

The only scenario in which this bullish-neutral outlook would be invalidated is if Musk’s comment causes further damage to DOGE’s price. In that case, the meme coin could dip to $0.147, extending its recent losses. A sustained downturn would signal more negative sentiment in the market and potentially halt Dogecoin’s recovery.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Bitcoin Price Nears $80,000; Fuels Death Cross Potential

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Bitcoin’s recent price action has shown some concerning signs. The crypto king has failed to break through key resistance levels, leaving it vulnerable to further declines. 

As Bitcoin inches closer to testing the $80,000 support level, the potential for a Death Cross looms, increasing bearish sentiment in the market.

Bitcoin Investors Are Skeptical

Short-Term Holders (STHs), who buy at higher prices, are primarily responsible for the ongoing losses. These investors have been actively noting losses in response to Bitcoin’s volatile market conditions, reflecting the unpredictable environment that has made it difficult for new investors to navigate.

Meanwhile, Long-Term Holders (LTHs) continue to realize profits, benefiting from their extended market presence. However, the current market conditions show stagnation in new capital inflows, with LTH profits offset by STH losses. This creates weaker demand and resistance, signaling a potential slowdown in price momentum.

Maintaining bullishness in the market typically requires consistent capital inflows, but the market now seems to be lacking that crucial support. The overall sentiment reflects a neutral stance, with both profit-taking and loss-realization balancing out.

Bitcoin Realized Profit/Loss
Bitcoin Realized Profit/Loss. Source: Glassnode

The crypto king’s macro momentum is showing additional signs of bearish pressure, particularly with the Exponential Moving Averages (EMAs). The 200-day EMA is less than 3% away from crossing the 50-day EMA, which would result in a Death Cross. This technical pattern has historically signaled significant corrections in price, marking a potential end to Bitcoin’s 18-month-long Golden Cross.

As the EMAs approach this critical point, traders and investors are closely watching for any signs of a correction. The fear of a Death Cross brings further concern to Bitcoin’s price stability. If the 50-day EMA crosses below the 200-day EMA, it could trigger more sell-offs, intensifying the bearish sentiment in the market.

Bitcoin Death Cross Nears
Bitcoin Death Cross Nears. Source: TradingView

Is BTC Price Primed For Further Decline?

Bitcoin is currently trading at $82,248, nearing the key psychological support level of $80,000. Despite attempts at a breakout, Bitcoin has failed to move beyond the two-month-long broadening descending wedge pattern. This pattern suggests that Bitcoin could be on the brink of further decline.

If the downward momentum persists, Bitcoin is likely to fall through the $80,000 support level and approach $76,741. This scenario would reinforce the bearish outlook, especially considering the technical indicators and the lack of strong buying support. A breakdown below these levels could signal a deeper correction, with the potential for further declines.

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

However, this short-term bearish thesis can be invalidated if Bitcoin’s price manages to reclaim $82,761 as support. If Bitcoin breaks through the $85,000 barrier, it could break out of the current pattern, signaling a potential reversal. A strong rally above $86,822 would suggest a resumption of the bullish trend, invalidating the bearish momentum that currently dominates the market.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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