Solana whales are pumping small new meme tokens, creating fake traffic and volumes

New meme tokens on Solana seemingly take off immediately with surprisingly high volumes. However, a form of wash trading may be inflating the reported volumes, leading to more rug pulls. On-chain investigators have noticed something suspicious about new meme token ￰0￱ of the assets started trading with significant volumes, leading to fast ￰1￱ that time, the tokens were seemingly traded by small wallets, and retail joined, expecting high ￰2￱ wallets use a technique of splitting their SOL into smaller batches, then buying and selling the tokens ￰3￱ way, they can benefit from the rally while keeping risk low. Retail, however, may end up with losses, as meme tokens are still mostly sold for ￰4￱ of whale wallets showed that some of the newly traded memes on Solana reach valuations of $200K to $300K before ￰5￱ valuations above $50M are now rare, even smaller pumps can lead to losses for retail ￰6￱ have intercepted cases where even one whale can create a fake ‘wallet army’ to boost early volumes and fool retail traders that the token is ￰7￱ take small losses, but can profit and sell if the token ￰8￱ DEX users retreat, volumes remain high The potential for wash trading on Solana and the presence of whales are reflected in the shift of active ￰9￱ DEX volumes remained relatively high, reaching $3.74B in 24 ￰10￱ volumes recovered from the slump in April and May, rising to a higher ￰11￱ DEX activity slowed down from its peak, though fees, volumes and economic activity were high.

On-chain analysts suspect the usage of fake wallet armies, boosting new small meme tokens. |