Scammers Profiting from Pump and Dumps on Snek Dot Fun

Episode Transcript

Speaker 1 (00:00):
This neck dot fund platform has brought in lots of
new users, lots of transactions, and has pushed up the
volume of trades on the Kadana ecosystem by quite a lot,
and it's really exciting to see. But it's also brought
in the scammers. And I'll just want to bring this
to your attention so you know what's going on here.
This post by GM four in CNFT has pointed out

(00:23):
that this particular address here has been creating meme coins
on their platform and then pumping them and then rugging
them straight after. Have a look at this here, so
this is the charts here. You can see the price
of this particular mean coin going up, so they are
artificially inflating the value of this meme coin and then

(00:45):
dumping it straight back down afterwards once it's reached up
in some sort of value. From this screenshot, there've been
thirty three different projects started from this particular wallet. But
if you have a look at the live wallet on
pool PM, you can see they're up to fifty one
of projects meme cooins launched on snack dot fund, so

(01:06):
that is a lot of activity there that this particular
user is doing. Now you might be wondering how much
they're actually making per memecoin here, and this was a
question post by decipher and people were trying to work
it out, but one of it's not. The last one
was seven k eight, so about two and a half

(01:26):
grand off that meme coin. That's insane. And if we
have a look a little bit further into the charts here,
we can see all the various meme coins that are
trading through there making a decent amount money. So if
you're rinse and repeating this, you're automating the process. You
can launch memecoin every hour or so, pump up the

(01:46):
volume on that particular meme coin, and then sell it
at a profit once everyone else apes in. So this
is a big exchange of eight from people that don't
know what's happening here to these particular gammas that are
behaving this way. So it's really unfortunate that we're seeing this,
but this is the type of behavior. This is a
type of activity that we do see on other ecosysms

(02:09):
like pump dot fun. You see that type of behavior.
You see the manipulated transactions and scams going through there,
And there've been videos interviewing some of these people that
actually run these scams, these pump and dumps and managed
to extract a lot of value from the ecosystem. So
this is starting to happen now on Kadana because we
have snap doot fund and other launch pads like it

(02:30):
that our users can find so easy to manipulate to
create a mean coin and then start pumping up the
markets too. So please be aware of what's going on here.
And you know, I'm not really surprised. This sort of
behavior is very common in other ecosystems. So if you
are going to act like Solana, you are going to
get Solana results. Now, another thing that you see in

(02:52):
Solana is the artificial inflation of transactions on there. I'm
not just talking about the voting transactions consensus on there,
which I really don't think should be included on the
transaction per second count. But here we can see this
person here posting about the daily active addresses, So you
can see a massive spy here. It's like four point

(03:14):
six million active addresses and then it drops down a
little bit. But Dave here does a brilliant breakdown of
actually what's happening here in the manipulation behind it. So
let me read this out to you, especially for those
people listening in on the audio podcast. You want to
see manipulation at its best. Seven day moving average skyrockets

(03:34):
from one million to three million as an average in
one day. When you look at the new addresses in
the network created, it's three million. I suggest the address
count is because people are being sent scam mean coins
to their wallets and it creates a new wallet address
Salana for each of those new assets they hold. Why

(03:55):
do I think this because if you're generally adding more
than one million new wallets to a network work on
average every week for months, and those wallets are legit user,
that average daily active addresses would be a hell of
a lot higher by now. In other words, for those
two charts to be identical like this, those new active

(04:15):
users are literally just being used once. If they are
used again, they'll be providing a much different higher graph
curve usual Solana ecosystem scammers who know how to game
the metrics. Now you can see these graphs here. This
data on dune athletics, So put a link down below
so you can examine it. You can compare it to
different ecosystems and see how it actually compares to Kadano

(04:36):
for example. Now, I just want to point out that
this type of activity can't happen on the Kadana ecosystem,
or technically it can, but it will cost the user,
the scammer, the person that is sending out those tokens
a lot of AIDA. These are all scam tokens, and
the person that is trying to send them out it
would cost them at least one AIDA for every scam

(04:57):
token that they air dropped. So if they're sending this
to a minis users as a scam, they would have
had to pay a million eight. That is a very
costly way to try and scam people and fake potential
activity on the chain. So hopefully you guys got something
interesting out of this particular update here. There are scammers

(05:18):
in the space. This type of activity is flowing over
to the Codina ecosystem a little bit more. So be vigilant,
be aware of what's happening here, and if you want
to participate in meme cooin launchers, go ahead. Just know
that there are these risks of manipulation behind it as well.
So enjoy, have fun, learn how to trade, learn how

(05:38):
to protect yourself and keep your assets as secure as possible.
If you like this type of content, make sure you
hit that like Subscribed notification belt and I'll see you
in the next video. Af