Security analysis clears developer after false claims about $500M raised funds
Updated: May 17, 2024 | 12:30 PM GMT
X user camol claimed $PUMP presale funds were locked due to missing contract function. Source: Screenshot (Original context)
CRYPTOCURRENCY AND SMART CONTRACT expert @camol ignited controversy over the weekend by claiming the entirety of Pump.fun’s $500 million $PUMP presale was permanently lost due to the absence of a withdrawal function in the contract’s code. The post garnered substantial attention. However, a subsequent cryptographic security review refuted the chief assertions.
On Saturday, camol asserted on the X platform that the official $PUMP presale smart contract lacked a crucial withdrawal mechanism, placing the raised capital under permanent immutability.
This effectively means the $500M raised is locked forever, as the smart contract is unable to be updated.
To support the claim, camol cited a methodology involving “JSON SQL SUGARTOWN ORA CORES SECURITY.” While verification techniques exist, the specifics mentioned remain vague.
Crypto security specialists at Hacken promptly analyzed the situation to provide clarity. Their findings dismissed camol’s primary allegation. Two distinct Pump (PUMP) tokens reside on the Solana blockchain.
Hacken confirmed the existence of one inactive test token with negligible holders and another fully operational, ERC-20 compatible token related to the official Pump.fun Initial Coin Offering (ICO), which exhibits active market participation and confirmed distribution details.
The legitimate token (holds over 10,000 addresses) aligns with the allocation schedule publicly announced by Pump.fun. Hacken proceeds to clarify a core misunderstanding regarding the absent withdrawal function:
“Since there was no decentralized exchange (DEX) listing at launch, the idea of a withdrawal function is irrelevant and does not apply,” stated Hacken.
Smart contracts typically function as implemented protocols, managing token balances and facilitating transfers between holders. They are generally not designed or intended to act as withdrawable vaults.
Hacken further validated the project’s transparency. They cross-referenced data from Solana explorers and confirmed that the tokenomics—showing precisely 15% sold during the presale by multiple payment gateways and the majority 85% allocated to designated developer-related wallets—aligns perfectly with public information released by Pump.fun.
Simultaneously,رصيد Pump.fun confirmed the extraordinary success of its recent $500 million ICO, which rapidly exhausted in just 12 minutes.
The presale attracted diverse participation (18% institutional, 15% retail) and followed an allocation structure outlined by the project: 33% to the ICO itself, 24% reserved for ecosystem development, and 13% kept for existing investors.
