How It Works
PumpGuard is your trusted partner in ensuring secure and transparent trading within the pump.fun ecosystem. Here’s a step-by-step overview of how PumpGuard works to protect both developers and investors:
Developer Commitment Locking Solana: Developers who list their coin on pump.fun can use PumpGuard to lock a chosen amount of Solana. This Solana serves as collateral, ensuring that the developers have a stake in the success of the coin. Setting Terms: The locked Solana is held securely for a predetermined period (typically 7 days). During this time, the developers must either successfully migrate the coin to Raydium or maintain its integrity without any rug pulls.
Investor Confidence Anti-Rug Assurance: By seeing that Solana is locked, investors gain confidence in the coin’s legitimacy. This reduces the fear of rug pulls, making it more attractive to invest in the coin. Transparency: All transactions and locked amounts are transparent and can be verified by investors, further enhancing trust in the coin.
Monitoring and Safeguarding Continuous Monitoring: PumpGuard continuously monitors the coin's activity and ensures that the locked Solana remains untouched unless the conditions are met. Rug Detection: If PumpGuard detects any suspicious activities, such as insider dumping or developer actions that suggest a rug pull, the locked Solana is flagged for potential refunds.
Migration to Raydium Successful Migration: If the coin successfully migrates to Raydium within the specified period, the locked Solana is returned to the developers, signifying a successful and secure project.
Refunds in Case of Rug Pull Rug Detection: If the coin is identified as having been rugged (e.g., if insiders or developers sell all their tokens or the coin fails to meet its migration goals), PumpGuard steps in. Investor Refunds: The locked Solana is then distributed to the top 25 investors, proportionally based on their losses. This mechanism helps mitigate the financial impact on investors and preserves trust in the ecosystem.
Requesting Refunds Investor Claims: Investors who are eligible for refunds can easily claim their share by verifying their wallet on the PumpGuard platform. Developer Refunds: Developers can also request their locked Solana back if the coin successfully migrates or after the 7-day period if no rug pull is detected.
Ongoing Security Community and Support: PumpGuard is not just a tool; it’s a community-driven initiative. We provide ongoing support and updates to ensure that the platform remains a pillar of security in the pump.fun ecosystem. PumpGuard is dedicated to making pump.fun a safer place to trade by holding developers accountable and protecting investors from the ever-present risk of rug pulls. With PumpGuard, you can invest with confidence, knowing that your funds are protected by a system designed to promote transparency and trust.
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