Bubblemaps flags ‘Rugproof’ launchpad over alleged rug pull risk

Blockchain analytics platform Bubblemaps has raised concerns about Rugproof, a self-described Solana-based launchpad that claims to protect investors from rug pulls.

Ironically, Bubblemaps alleged that the project may be orchestrating the same type of exploit it claims to prevent. On Monday, the analytics platform shared information about the project, saying someone built a “Rugproof Launchpad” just to allegedly “rug” users

Rugproof claims on its website that it lets anyone create tokens with “zero-risk early investment, anti-dump mechanics and built-in rewards for loyal holders.” It also claims to perform token buybacks and offer lifetime rewards

However, Bubblemaps alleged that the data shows otherwise. The analytics platform said 50% of the project’s tokens were “bundled at launch.”

Cointelegraph reached out to the Rugproof team but did not get a response.

Bubblemaps visually demonstrate the connection between the projects’ tokenholders. Source: Bubblemaps## Token creator distributes SOL to 162 wallets to buy Rugproof

Using its visual bubble map that tracks onchain data, Bubblemaps analysts demonstrated the connection between the project’s tokenholders

According to Bubblemaps, the project’s creator sent Solana (SOL) tokens to 162 different wallets. Afterward, the wallets bought half of the token’s supply. “Token creator o93G6B sent SOL to 162 wallets. These wallets bought 50% of the RugProof supply at launch,” Bubbllemaps said

This structure mirrors the setup of many alleged rug pulls in the past.

The move to send crypto assets from the token creator to 162 wallets appears to be an attempt to create an illusion of a fair and decentralized launch despite being linked or controlled by the same entity

The project’s details, such as its team identities, tokenomics or smart contract audits, remain undisclosed and difficult to verify through its public data and channels

Bubblemaps is a platform that transforms onchain data into interactive bubbles, allowing users to see token distributions and wallet interactions more easily. The platform often points out wallet clusters that indicate control over a project’s supply

On July 15, the platform shared a “bubble map,” a visual representation of a project called ALT, which crashed from a $190 million to a $3 million market cap because of an alleged rug pull

Related: Influencer who coined ‘memecoin supercycle’ sits on $68M profit, data suggests

Memecoin sector flips bullish in July

The rug pull allegations come as memecoins rallied in July. On Wednesday, the overall valuation for memecoins surged to $85 billion, up 54% compared to June 30. At the time of writing, the sector’s market cap was corrected to $73 billion, which is still up 32% compared to June

Mercuryo co-founder and CEO Petr Kozyakov previously told Cointelegraph that the memecoin market surge is triggered by a mix of events, including the Pump.fun initial coin offering, memecoin accessibility and the Bitcoin (BTC) surge to new all-time highs

He said that the mood on memecoins has “undoubtedly flipped to the bullish side.”

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