Can Raydium’s New Memecoin Launchpad Rival Pump.fun?
Raydium, the decentralized exchange within the Solana ecosystem, proposes to establish a rival memecoin launchpad to compete with Pump. Fun. This proposal comes about a month after reports that Pump.fun was testing a specially designed automated market maker that could eventually replace Raydium.
Pump.Fun, the memecoin token creation platform, launched in early 2024, accounts for over 35% of Raydium’s revenue. After Pump.Fun’s AMM code was published, InfraRAY, a core contributor, stated that replacing Raydium would be a “strategic misstep.”
Pump.Fun uses Raydium to enable trade in the secondary market for tokens with a market capitalization of $69,000. Tokens automatically switch between platforms after filling the bonding curve.
Its swap revenue, approximately $154 million in 2024, is expected to increase to roughly $1 million across all its liquidity pools. Analysts believe Raydium’s LaunchLab will be similar to Pump.Fun with a few modifications.
In addition to having a similar logarithmic bonding curve, it will allow third-party user interfaces to set fees and gain direct access to Raydium’s liquidity pools. According to sources familiar with the matter, the project has been in development for several months.
There are also reports that Pump.Fun intends to introduce a native token. Following the announcement, the RAY token (Raydium’s native token) has surged by more than 5% and trades at $1.67 at the time of writing.
Four.Meme Memecoin Launchpad Falls Victim to a Crypto Hack
BNB Chain-based meme coin launchpad, Four.Meme was a victim of hackers, causing it to suspend its PancakeSwap’s token liquidity pool. Blockchain security company SlowMist first detected the attack and noted that the platform’s smart contract had a vulnerability that hackers used to exploit.
Smart contract audit company QuillAudits stated that the attacker could “bypass transfer restrictions and control liquidity pool pricing” by taking advantage of a vulnerability in Four. Meme’s liquidity mechanism. This is the second attack on Four.Meme in the past two months. The first time, $183,000 was stolen because of another vulnerability that let a hacker control PancakeSwap’s liquidity.
How The Attack Happened
This time, the attacker used the “0x7f79f6df” function to obtain a small number of Four.Meme tokens before its official launch. According to QuillAudits’ report, they sent the tokens to an address not known as PancakeSwap Pair rather than holding or moving them traditionally.
PancakeSwap often requires a unique address, known as a pair address. This address is typically generated at token launch and trading, so the hacker created the pair address since it didn’t exist.
This allowed the attacker to manipulate the system and steal money from the liquidity pool by adding liquidity (trading tokens) at the incorrect price. Three days before the attack, the hacker used several contracts to take 69 BNB from a FixedFloat hot wallet called “0x47…c95.”
According to the report, the attacker transferred the stolen 67.3 BNB to wallet address “0x4c…805” and 205 BNB to wallet address “0x88…456.” After that, the 205 BNB was divided and transferred among four wallets.
Over $174K in stolen funds were transferred across multiple wallets after the attack on the meme coin platform to conceal their trail. According to QuillAudits, the hacker used PancakeSwap’s $BROCCOLLI 3 contract to move the stolen money.
The exchange and distribution of 192 wBNB took place among several PancakeSwap contracts, such as PancakeSwap DCA 32 (0x77C1dF8…), MuBrocolli (0xcaC54d89…), and others.
Four.Meme Response to The Memecoin Attack
Responding to the breach, Four.Meme tweeted that it would present a damage reporting form to gather relevant information and compensate affected users. After conducting security checks for a few hours, Four.Meme stated the operations had resumed and requested that impacted users submit their claims.
According to data from Dune Analytics, this platform has experienced a notable surge in activity since its inception, with 74,607 distinct tokens being introduced. Both attacks highlight the continued risks facing decentralized platforms, particularly those managing significant amounts of liquidity in meme coin markets.
Meanwhile, the platform stated that it has taken precautions to avoid similar incidents in the future. A similar attack occurred last month at zkLend, a decentralized loan platform on the Starknet blockchain, resulting in the loss of $9.5 million in cryptocurrency assets.
