- Hackers took control of Visa’s Facebook, promoting a Solana-based token named “VISA,” which surged before crashing in a possible rug pull.
- FAFO Barron meme coin spiked 250% after Donald Trump’s Truth Social post, only to drop 28% shortly after, highlighting meme coin volatility.
- Solana’s Pump.fun platform faces criticism for enabling scam tokens, with only 0.4% of users profiting, as a lawsuit targets its operations.
Visa’s official Facebook account was hacked today, and the account posted information about a Solana-based token called “VISA.” The token price surged and then plummeted in what could be a clear indication of a rug pull scam.On January 27, hackers took over the Visa’s Facebook page. They deployed it to promote token trading of Solana under the symbol VISA. The token suddenly spiked in value and then crashed as is usual in rug pull scams.
Visa Facebook Hack Fallout
This is not the first time that corporate social media accounts have been hacked to push fake crypto ventures. Since the scams against high-profile brands such as Visa continue to be on the rise, the safety of digital platforms is in doubt.
Another Solana-based token that also surged in price is FAFO Barron, after the former US President, Donald Trump, posted a photo with the token on his Truth Social platform. The post pushed the meme coin to a 250% increase in price within just four hours.
FAFO Barron was launched with the help of Pump.fun, a platform that gives users an ability to launch meme coins on Solana. Following Trump’s post, the market capitalization of the coin shot past $148,000 within a few hours. However, this surge was short-lived. At the time of this report however, FAFO Barron had fallen by 28%, which is just a clear indication that meme coins are indeed volatile.
This was not the first time a meme coin would come to limelight before crashing. Another token called “Barron” was launched on Solana back in January. It surged in price shortly after its launch but then suffered a rug pull that removed $1 million in value from the market.
Pump.fun Faces Legal Action
Solana has gained its reputation as one of the most suitable ecosystems for new and ambitious crypto projects and ventures like Pump.fun. The blockchain enables novel AI applications, but most projects like Pump.fun, allow anyone to create tokens and promote frauds.
Critics have accused Pump.fun of supporting such scams, and the company has been widely criticized for so doing. A report indicates that out of the platform’s 14 million users, 0.4% generated profits of $10,000 and above while the rest incurred losses.
Burwick Law has submitted a lawsuit against Pump.fun, claiming that the company is preying on investors. The company says that Pump.fun works like a pyramid scheme, and the lawsuit may be followed by more legal proceedings against the platform.
